Texas Supreme Court Permits United Methodist Church’s Lawsuit Against SMU to Proceed

Austin, TX — In a pivotal decision on June 27, 2025, the Texas Supreme Court ruled that the United Methodist Church’s South Central Jurisdictional Conference (SCJC) may proceed with its lawsuit against Southern Methodist University (SMU) concerning a governance dispute that has persisted since 2019. The court’s 8–1 decision allows the SCJC to pursue claims that SMU breached its governing documents by unilaterally amending its articles of incorporation to sever longstanding ties with the church.The conflict originated in November 2019 when SMU’s Board of Trustees amended the university’s articles of incorporation, removing all references to the SCJC and asserting that the board held ultimate authority over the institution. This move followed the United Methodist Church’s adoption of the “Traditional Plan,” which reinforced prohibitions against same-sex marriage and the ordination of LGBTQ clergy. SMU, emphasizing its commitment to inclusivity, sought to distance itself from the church’s stance. 

In response, the SCJC filed a lawsuit, asserting that SMU’s actions violated the 1996 articles of incorporation, which stipulated that the university was “to be forever owned, maintained and controlled by the South Central Jurisdictional Conference of The United Methodist Church.” The SCJC argued that any amendments to these articles required its prior approval.

A district court initially dismissed the SCJC’s claims in 2021, but the Texas Fifth Court of Appeals reversed that decision in 2023, allowing the case to proceed. The Texas Supreme Court’s recent ruling affirms the appellate court’s decision, enabling the SCJC to pursue its breach-of-contract claim as a third-party beneficiary of SMU’s articles of incorporation. 

Justice Debra H. Lehrmann, writing for the majority, stated, “We hold that the conference has statutory authority to sue SMU to enforce its rights under the articles and the Texas Business Organizations Code.” The court determined that the SCJC’s claims could be resolved by interpreting Texas statutes and SMU’s articles of incorporation, without delving into ecclesiastical matters.

However, the court dismissed the SCJC’s claim that SMU knowingly filed false paperwork with the state when it amended its governing documents, concluding that SMU had disclosed its reasoning and acted on legal advice. 

The SCJC welcomed the ruling, with Bishop Laura Merrill, president of the SCJC’s College of Bishops, expressing hope for a peaceful resolution that maintains the historic connection between the church and the university. 

SMU, in a statement, affirmed its respect for its Methodist heritage and expressed readiness to continue defending its board’s authority in court.

The case now returns to the trial court for further proceedings, with potential implications for other religious-affiliated institutions navigating similar governance issues.