Sawnie McEntire (left) for the United Methodist Church and Allyson Ho for Southern Methodist University argue before the Texas Supeme Court.Case With 'Serious Consequences for Corporate Law' Heads to Texas Supreme Court
Texas Supreme Court justices heard argument on whether Southern Methodist University has the right to separate from its founder.
January 15, 2025 at 05:04 PM
5 minute read
What You Need to Know
- The United Methodist Church conference that founded Southern Methodist University is seeking to regain control of the institution if founded.
- SMU split from the church in 2019 over its stance on same-sex marriages, but a court of appeals reversed in part in the church's favor.
- SMU claims a ruling the UMC's favor, under the applicable Texas law, would open the door to vexatious litigation from ultra vires plaintiffs.
The Texas Supreme Court heard argument concerning the rift between Southern Methodist University and the conference of the United Methodist Church that founded it in 1911.
The court must now decide if SMU, which proclaims itself a "nonmember nonprofit corporation," can amend its articles of incorporation when the articles state no amendments can be made without approval of the conference.
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