In 1955, the Rev. Robert Schuller established Garden Grove Community Church in an old drive-in theater in Orange County, California. Over the next 50 years, the “community” church became a megachurch called Crystal Cathedral, from which Schuller broadcast a show called “Hour of Power.” At its height, “Hour of Power” was seen by 1.3 million people in 156 countries, according to The Huffington Post.

That all changed in 2010 when Crystal Cathedral filed for bankruptcy in the face of a $36 million mortgage and $7.5 million it owed to different vendors. In 2011, Crystal Cathedral got some help from the sale of its 40-acre property to the Catholic Church diocese in Orange County.

But wait, there’s more! In 2012, Schuller himself became a bankruptcy creditor, filing a claim against Crystal Cathedral for $5 million for the use of his intellectual property. He claimed he owned the rights to books and the “Hour of Power” show. A judge, however, awarded the Schuller family only $700,000. Schuller appealed.

In an unpublished opinion Monday, a three-judge panel of the Ninth Circuit affirmed the bankruptcy award.

Judge Reinhardt, Dissenting

Judge Stephen Reinhardt dissented because he believed Schuller was a retiree, not an employee.

In spite of the agreement, however, things seemed testy between Schuller and what remained of his church. In November 2012, he and his wife resigned from the board of directors when they and the church couldn’t agree on some of the very intellectual property disputes at issue, reported Southern California Public Radio.

Related Resources:

  • Lasting Tributes Meet Early End in Bankruptcy (The New York Times)
  • The Crystal Cathedral Becomes Christ Cathedral (National Catholic Register)
  • Anna Nicole Smith’s Bankruptcy Legacy; Case Outlives Most Parties (FindLaw’s U.S. Ninth Circuit Blog)
  • Interpretation of Bankruptcy Homestead Exemption, and Criminal Matter (FindLaw’s U.S. Ninth Circuit Blog)

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