Legal Question in Business Law in Ohio

Our church has allowed another church to rent space 3 times a week for services and any church functions. Our deacon has allowed them to do this without a security deposit, contract or any evidence that they have insurance and naming our church as secondary insured on their policy.

My question is: should there be a lawsuit for any reason and our church does not have enough coverage to cover the award, can they come after the members of our church personnally for the differance because the members of our church would be the actual owners when it comes down to the human aspects of it all.


Asked on 7/27/09, 11:16 am

1 Answer from Attorneys
Bradley Miller Miller Law LLC

First of all, you are correct that because there is no insurance or indemnification agreement (an agreement that the other church will cover any claims brought against your church), a suit could potentially be brought against your church since you are the owners of the property. This right there is enough to require the insurance and contract you mentioned.

What type of entity is your church? This can impact how easily someone could go after the members of the church. Most likely, your church is set up as a 501(c)(3) charitable corporation. As such the church would be treated like a corporation if sued. One of the major reasons to have a corporation is that it can shield its members/shareholders from liability incurred against the corporation. To make a long story short, it would be difficult for anyone who sued the church to succeed in going after the members.

Your concern in protecting the church and its assets are valid, but you as an individual is probably ok (here is the general lawyerly disclaimer that it all depends on the specific facts in your situation).

If you have any further questions, feel free to contact me.

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Answered on 7/27/09, 11:29 am


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