Texas Supreme Court Allows United Methodist Church Breach Suit Against SMU to Proceed

The Texas Supreme Court has ruled that the United Methodist Church's South Central Jurisdictional Conference can sue Southern Methodist University (SMU) for breach of contract and challenge the university's 2019 amendments to its articles of incorporation. These amendments removed language stating that SMU was "forever owned, maintained and controlled" by the conference, a change made without the conference's approval amid a church schism over LGBTQ-related policies. The court found the conference has statutory authority to pursue its claims and recognized it as a third-party beneficiary with standing to enforce its rights under the 1996 articles. While the court allowed the breach of contract case to continue, it did not rule on the merits, sending the case back to trial court for further proceedings. The dispute stems from SMU's effort to assert sole governance by its board of trustees, distancing itself from the church following the church's 2019 decision to uphold bans on LGBTQ clergy and same-sex marriages, which have since been repealed. The case highlights ongoing tensions between religious organizations and affiliated institutions over governance and control.