THE Rev. Robert H. Schuller, who propelled the Crystal Cathedral into one of the most recognized churches in the world, lost the bulk of his multimillion-dollar claims against his former ministry in U.S. Bankruptcy Court on Nov 26.
Judge Robert Kwan in Los Angeles ruled that Schuller, his wife, daughter and son-in-law did not provide evidence to back most of their claims.
“It’s just a travesty after all that they’ve given and all that they’ve done,” said daughter Carol Schuller Milner.
Schuller and his wife, Arvella, filed a number of claims, including a $5 million claim for breach of contract and another for an unspecified amount for copyright infringements. Kwan rejected most of the claims and instead awarded $615,625 to Schuller and nothing to his wife.
“This was a complete victory for the creditors and the church,” said attorney Todd Ringstad, who represents the creditors.
With the ruling, “we have a thousand-plus checks to write” to creditors who have been awaiting payment since the church filed for bankruptcy protection in 2010, said attorney Nanette Sanders.
John Charles, chief executive of the Crystal Cathedral, said in an email: “A long and difficult period in the history of the Crystal Cathedral is over.
“The ruling will enable the final creditors to be paid and give us the money we need to move on with our ministry, spreading a message of hope and love to the people of Orange County and, through the ‘Hour of Power,’ to the world,” Charles wrote. “The trial was painful for everyone involved, and our congregation is ready to move on. We love the Schullers and wish them well.”
The elder Schullers, their daughter, Milner, and son-in-law Tim Milner will now be among the unsecured creditors vying for a piece of about $17 million available for disbursement. The creditors are owed about $14 million, Sanders said.
Kwan rejected most of the $272,000 in claims submitted by the Milners, and instead allowed $10,615 to Schuller’s daughter for a housing allowance and $67,000 for Tim Milner for two of his claims.
After the creditors are paid, any remaining money will go to the Crystal Cathedral Ministries, which sold its Garden Grove campus to the Catholic Diocese of Orange and is looking to move to another site next summer.
At the heart of the case were claims for breach of contract, copyright infringements and intellectual property rights.
The Schullers argued that for decades they generously donated their books and other materials to benefit the Crystal Cathedral. But the ministry exploited their intellectual property, the Schullers said.
When they retired, Schuller entered into a transition agreement with the ministry that would compensate him for the rest of his life and he would continue his role as ambassador to the ministry. Both Schuller and his wife are in their 80s. But after the Crystal Cathedral entered bankruptcy, all payments stopped.
Kwan said that Schuller failed to establish that the ministry infringed on his copyrights or violated the terms of “the broad license” he gave for use of his works. The judge further ruled that Schuller did not establish an amount of damages for any alleged infringement.
Schuller owns the rights to his dozens of books. As for who owns the rights to the “Hour of Power” television program, Kwan said the Schullers did not prove they did. The show that has been televised around the world is copyrighted under the Crystal Cathedral Ministries. The Orange County Register
