LCMS BOD versus Kieschnick and The COP

By: Rev. Jack Cascione
The LCMS Board of Directors (BOD) has hired the Bryan Cave Law Firm for a
legal opinion about recent Commission on Constitutional Matters (CCM)
decisions being in conflict with Missouri Law, where the LCMS is
incorporated.

Cave informed the BOD that recent rulings by the CCM placing President
Kieschnick above the BOD are against Missouri Law and jeopardize the Synod's
Articles of Incorporation.  This implication is that the LCMS BOD doesn't
meet the requirements for a BOD under Missouri Law.  Under Missouri Law, no
entity or officer in the corporation may have more authority than the BOD.

The BOD operates as the Synod when the Synod is not in Convention.  The
Convention is the final authority.  A flaw in the LCMS Constitution gives
the LCMS President authority to appoint people to the CCM without the
Convention.  The conflict has never become apparent until recent CCM rulings
defended Kieschnick's actions in the Benke Case and claimed the President is
not accountable to the BOD or subject to removal by the BOD.  Under Missouri
Law, the CCM can only be advisory to the BOD.  The LCMS is actually in
jeopardy of loosing its non-profit status under Missouri Law if officers and
commissions can act in defiance of the BOD.

These CCM rulings invalidate the BOD's previously unquestioned
constitutional authority to administer the funds and property of the LCMS,
including its Colleges, Seminaries, and Districts.

The Concordia University System (CUS) has accumulated more than 203 million
dollars in long-term debt to the LCMS.  CUS continues to bleed red ink and
the BOD is legally bound to prevent Synodical bankruptcy.  At the same time,
the Districts are spending more funds on themselves and giving fewer funds
to the Synod.

While the BOD struggles to control mounting Synodical debt, President
Kieschnick, his political allies in "Jesus First," and the Council of
District Presidents (COP) have a different approach.  Potentially, the Synod
could count billions more in assets and borrow addition 100s of millions.

By broadening the definition of Synodical assets, the Synod could borrow
more 100s of millions.  At the moment, the Synod is not counting the Pension
and Church Extension funds and Congregational property in its ratio of debt
to assets.  The BOD is currently working with about a billion dollars in
assets, including campuses and office buildings, as a ratio against 203
million dollars of debt.

At present, the BOD is preparing for a major court battle and its officers
have voted to indemnify themselves.  According to Texas District President
James Lindermann, (Kieschnick's right hand man) the COP or others will
consult legal council and challenge the Cave legal opinion.

Lindermann writes: "The implication in this [BOD] document that a new
direction will be followed in the governance of our Synod is a matter of
utmost importance to all of us. I am sure that there will be requests for
other legal opinions on the subject. The Council of Presidents will be
meeting Saturday-Wednesday."

Notice that Lindermann calls historic BOD authority, "a new direction."  The
COP believes the Districts have more authority than the BOD.  In political
terms, the COP is in the process of a coup.  Recent "Jesus First" propaganda
sent to all LCMS congregations, describe the COP as the congregations, best
friend.

The COP has been draining the Synod of funds.  In the current fiscal crisis,
if the Synod goes into bankruptcy, the Districts will probably become
independent or only affiliated entities of the Synod.  At the moment, under
Missouri Law, the BOD is claiming constitutional authority to control
Synodical and District property and the right to remove officers without
cause, authority that the CCM now claims the BOD doesn't have.

September 17, 2003