In a decisive victory for Larson’s client, the U.S. Court of Appeals for the Ninth Circuit ruled unanimously in favor of The Church of Jesus Christ of Latter-day Saints (LDS Church), dismissing a fraud lawsuit brought by a former member over the use of tithed contributions.
Ex-member James Huntsman sought the return of $5 million in donations, alleging the LDS Church improperly used tithed funds for commercial projects including the development of the City Creek Center mall in downtown Salt Lake City. In fact, the Church used the earnings on invested reserve funds for the project, just as the Church president Gordon B. Hinkley had said it would do.
“Tithing donations are considered sacred by The Church of Jesus Christ of Latter-day Saints,” said Doug Anderson, spokesperson for the LDS Church. “We welcome this decision inasmuch as the church has consistently affirmed that funds used for the City Creek project came from the earnings of invested reserve funds and not from donations.”
In her en banc opinion, 9th Circuit Judge Michelle T. Friedland rejected Mr. Huntsman’s assertion that using the interest from tithed funds was same as using the funds themselves, confirming, “No reasonable juror could conclude that the Church misrepresented the source of funds for the City Creek project…Huntsman had not presented evidence that the Church did anything other than what it said it would do.”
The suit was originally filed in 2021, and U.S. District Judge Stephen Wilson granted summary judgment in the Church’s favor several months later. Mr. Huntsman appealed, and a 2-1 divided Ninth Circuit panel reversed the summary judgment in 2023. The Church was granted en banc review and presented oral arguments in September 2024. The written ruling was issued January 31, 2025.
The Larson trial team included Partner Rick Richmond and Counsel Andrew Calderón. “As counsel for the Church, and as a life-long member of the Church whose ancestors participated in its founding, I am profoundly grateful to the 9th Circuit en banc panel for this extraordinary ruling today,” said Richmond.
Several religious groups and institutions filed friend-of-the-court briefs in support of the Church, some noting that similar suits over donations to the Church have been filed since Mr. Huntsman’s. This decision could have national implications in affirming how religious organizations use the voluntary contributions they receive from members, and how voluntary contributions are invested for future use.
Previous updates on this case:
LDS Church Moves to Dismiss Huntsman’s Lawsuit
LDS Church Fires Back on Tithing Lawsuit
Firm Wins Summary Judgment for LDS Church
Rick Richmond’s LDS Church Victory Named a “Top Verdict”
Ninth Circuit Grants Rare Rehearing in Church Tithing Case
