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Woman lost her faith in Mormon church, now losing fraud lawsuit against it

LEGAL NEWSLINE

Monday, December 23, 2024

Woman lost her faith in Mormon church, now losing fraud lawsuit against it

Federal Court
Salt lake city 1241661 1280

The LDS temple in Salt Lake City, Utah. | Pixabay

SALT LAKE CITY (Legal Newsline) – A federal judge has ruled against a woman who lost her faith in the Mormon church and then sued it – a case the church said mocked “both the court and religion.”

On March 31, Judge Robert Shelby, of the U.S. District Court for the District of Utah, dismissed the complaint of Laura Gaddy but allowed her 45 days to file a new lawsuit that would fix the deficiencies he found – though she might find it difficult to do so.

“Churches can be liable for fraud claims like anyone else,” he wrote.

“But the First Amendment bars such claims when they would require a court to consider the truth or falsity of a church’s religious doctrines.”

Gaddy filed the proposed class action against the church in August, citing allegations of common law fraud, intentional infliction of emotional distress and other counts.

Gaddy alleged that the defendant leaves out pertinent information about the history of the church and its founder Joseph Smith, around which she and other followers based their beliefs and many life decisions. She alleges the key facts the church teaches are "radically different" than its factual history.

She claims that the Church of Jesus Christ of Latter-day Saints, in its account of Smith's first vision, leaves out information found in Smith's own handwritten account, some of it relating to his practice of polygamy

In its argument for the dismissal, the defendant said Gaddy's complaint makes a "mockery of both the court and religion" and claims Gaddy is asking the court to "convene a modern-day inquisition into the teachings of The Church of Jesus Christ of Latter-day Saints."

"The law does not call on judges or juries to determine the truth or falsity of any religion," the church said in its motion to dismiss.

"It is not the province of judges or juries to determine whether Moses parted the Red Sea, whether Noah predicted and survived the flood, whether Mohammed ascended to heaven, whether Buddha achieved a state of enlightenment, whether Jesus walked on water, or whether Joseph Smith saw God and Jesus Christ."

Judge Shelby wrote that none of Gaddy’s arguments persuaded him to alter his conclusion that the First Amendment prohibits the inquiry her fraud claims would require.

“Even accepting as true Gaddy’s well-pleaded factual allegations, the court may not assess the veracity of the Church’s religious briefs,” he wrote.

Gaddy also made a claim for racketeering, arguing the Church, its leaders and members qualified as an “enterprise” under the RICO Act and committed mail and wire fraud by using the postal service and electronic communications to spread its allegedly fraudulent message.

“These predicate acts directly implicate the veracity of the Church’s teachings,” the judge ruled. “That is, the Church can be liable for mail and wire fraud only if the messages it communicated were false.

“But the court has already determined the First Amendment bars inquiry into the Church’s religious beliefs.”

From Legal Newsline: Reach editor John O’Brien at john.obrien@therecordinc.com.

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