Worldwide Church of God, Inc. v. California, 623 F.2d 613 (9th Cir. 1980). · Go Syfert
Worldwide Church of God, Inc. v. California, 623 F.2d 613 (9th Cir. 1980). Cases Citing This Book View Copy Cite
56 citation events (20 in the last 25 years) across 11 distinct courts.
Treatment trajectory · 1982 → 2026 · click a year to view as-of
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Cited for
At page 616 Analyzing state interest in charitable trust fraud and amendment rights25 citing casesstate receivership order pursuant to investigation and regulation of fraud in charitable trusts4 citing courts put it this way · 19 listed here
  • Yelp Inc. v. Paxton, 137 F.4th 944 (9th Cir. 2025).published
    See Younger, 401 U.S. at 40, 54 ; Huffman, 420 U.S. at 611-12; Juidice v. Vail, 430 U.S. 327, 338 (1977); Trainor v. Hernandez, 431 U.S. 434 , 446-47 (1977); Moore v. Sims, 442 U.S. 415, 432 (1979); Worldwide Church of God, Inc. v. Califor…
  • Accohannock Indian Tribe v. Tyler, No. 1:21-cv-02550, 2021 WL 5909102 (D. Md. Dec. 14, 2021).
    (investigating fraud in charitable trusts)
  • Sergio Ramirez v. Cnty. of San Bernardino, 806 F.3d 1002 (9th Cir. 2015).published
    ([A] party may, as a matter of right, amend its complaint once before the filing of a ‘responsive pleading’ or the entry of final judgment. ...)
  • Rick-Mik Enter., Inc. v. Equilon Enter., LLC, 532 F.3d 963 (9th Cir. 2008).published 2 cites
    Under Rule 15(a), Rick-Mik had an absolute right to amend, which ended upon the filing of a “responsive pleading” (e.g., an answer) “ ‘or the entry of final judgment following dismissal of its action.’ ” Id. (quoting Worldwide Church of Go…
  • Trudeau v. Direct Mktg. Concepts, Inc., 90 F. App'x 486 (9th Cir. 2003).unpublished
    “a party may, as a matter of right, amend its complaint once before the filing of a ‘responsive pleading’ or the entry of final judgment following dismissal of its action”
  • United States v. Union Corp., 194 F.R.D. 223 (E.D. Pa. 2000).published
    (stating that a party may amend as a matter of right before the filing of a responsive pleading or the entry of a final judgment)
  • Woodfeathers, Inc. v. Washington Cnty., 180 F.3d 1017 (9th Cir. 1999).published
    Were we to make the determination whether to abstain turn on whether a state law is preempted, we “would render Younger a nullity.” Fresh Int’l, 805 F.2d at 1361 (quoting Worldwide Church of God, Inc. v. California, 623 F.2d 613, 616 (9th…
  • Charles H. Cahill v. Liberty Mut. Ins. Co., 24 F.3d 245 (9th Cir. 1994).published
    Right to Amend as a Matter of Course is Terminated by Entry of Final Judgment 26 The right to amend once as a matter of course may be cut off by the filing of a responsive pleading as well as "entry of final judgment following dismissal of…
  • Grand Metro. PLC v. Pillsbury Co., 702 F. Supp. 236 (D. Ariz. 1988).published
    See Fresh Int’l Corp., 805 F.2d at 1361 ; Worldwide Church of God, Inc. v. California, 623 F.2d 613, 616 (9th Cir.1980).
  • Jarvis v. Regan, 833 F.2d 149 (9th Cir. 1987).published 2 cites
    Mayes v. Leipziger, 729 F.2d 605, 607 (9th Cir.1984); Worldwide Church of God, Inc. v. State of California, 623 F.2d 613, 616 (9th Cir.1980).
Show 9 more citing cases
  • Mendoza v. Wight Vineyard Mgmt., 783 F.2d 941 (9th Cir. 1986).published 2 cites
    No. 885, supra, reprinted in 1982 U.S.Code Cong. & Ad.News at 4550. 23 Appellants had an absolute right to amend once prior to the service of a responsive pleading, see Worldwide Church of God, Inc. v. California, 623 F.2d 613, 616 (9th Ci…
  • Raisa R. Mayes v. David A. Leipziger & Levy, 729 F.2d 605 (9th Cir. 1984).published
    In Worldwide Church of God, Inc. v. State of California, 623 F.2d 613, 616 (9th Cir.1980), we said that “a party may, as a matter of right, amend its complaint once before the filing of a ‘responsive pleading’ or the entry of final judgmen…
  • N Grp. LLC v. Hawai'i Cnty. Liquor Comm'n, 681 F. Supp. 2d 1209 (D. Haw. 2009).published 2 cites
    See Worldwide Church of God, 623 F.2d at 616 (concluding that, although the plaintiffs complaint did not allege bad faith with sufficient specificity, the plaintiff might be able to allege facts demonstrating bad faith if permitted to amen…
  • Fresh Int'l Corp. v. Agric. Labor Relations Bd., 805 F.2d 1353 (9th Cir. 1986).published 2 cites
    (noting that this reasoning, if accepted, “would render Younger a nullity)
  • Hagee v. City of Evanston, 95 F.R.D. 344 (N.D. Ill. 1982).published
    See Worldwide Church of God, Inc. v. State of Cal., 623 F.2d 613, 616 (9th Cir. 1980); Breier v. Northern California Bowling Proprietors’ Ass’n., 316 F.2d 787 , 789 n.1 (9th Cir. 1963); 6 Wright & Miller, supra, ¶ 1483, at 414-15.
  • Benson v. JPMorgan Chase Bank, N.A., 673 F.3d 1207 (9th Cir. 2012).published
    See Breier v. N. Cal. Bowling Proprietors’ Ass’n, 316 F.2d 787, 789 (9th Cir.1963) (“Neither the filing nor granting of such a motion [to dismiss] before answer terminates the right to amend; an order of dismissal denying leave to amend at…
  • Potrero Hills Landfill, Inc. v. Cnty. of Solano, 657 F.3d 876 (9th Cir. 2011).published
    (investigating charitable trust fraud pursuant to state Attorney General’s supervisory authority)
  • Harper v. Pub. Serv. Comm'n of West Virginia, 396 F.3d 348 (4th Cir. 2005).published 2 cites
    (investigating fraud in charitable trusts)
  • World Famous Drinking Emporium, Inc. v. City of Tempe, 820 F.2d 1079 (9th Cir. 1987).published 2 cites
    (state receivership order pursuant to investigation and regulation of fraud in charitable trusts)
At page 615 Analyzing abstention doctrines regarding state receiverships2 citing cases“would violate the principles of federalism, equity, and comity that Younger and related cases seek to preserve”1 citing court quotes it
  • Easter v. Am. West Fin., 202 F. Supp. 2d 1150 (W.D. Wash. 2002).published
    “would violate the principles of federalism, equity, and comity that Younger and related cases seek to preserve”
  • Turf Paradise, Inc. v. Arizona Downs, 670 F.2d 813 (9th Cir. 1982).published 2 cites
    It has subsequently been expanded to include some civil proceedings, e. g., state nuisance proceedings antecedent to a criminal prosecution for exhibiting obscene films, Huffman v. Pursue, Ltd., 420 U.S. 592 , 95 S.Ct. 1200 , 43 L.Ed.2d 48…
At page 614 cited at this page1 citing case
Other citing cases3 with no pin cite or quoted language on record
Retrieving the full opinion text from the archive…
WORLDWIDE CHURCH OF GOD, INC. Ambassador College, Inc. Ambassador International Cultural Foundation, Inc. Herbert W. Armstrong Stanley R. Rader Ralph Helge
v.
The STATE OF CALIFORNIA, Evelle J. Younger, George Deukmejian, Lawrence R. Tapper
No. 79-3672.
Court of Appeals for the Ninth Circuit.
Jul 21, 1980.
Published opinion
623 F.2d 613
1980 U.S. App. LEXIS 15563
Laurence H. Tribe, Cambridge, Mass., Allan Browne, Allan B. Cooper, Allan Gabriel, Ervin, Cohen & Jessup, Beverly Hills, Cal., for appellants., James M. Cordi, Deputy Atty. Gen., Los Angeles, Cal., argued for appellees; Lauren R. Bramard, Los Angeles, Cal., on brief.
Cited by 27 opinions  |  Published
PER CURIAM.

The Worldwide Church of God appeals from the district court’s orders denying the Church a preliminary injunction and denying it leave to amend its civil rights complaint. The district court properly denied injunctive relief on the record before it, but the refusal to allow amendment of the Church’s complaint requires a remand.

On January 2, 1979, the Attorney General of the State of California, pursuant to his supervisory authority over charitable trusts under California Corporations Code § 9505,[1] filed an action in state court, seeking an accounting of the finances of the Church and affiliated corporations and requesting that those entities be placed in receivership. The state’s complaint alleged that these actions were necessary to prevent diversion of Church assets from charitable purposes to the personal benefit of persons who controlled the Church. The state court, following an ex parte proceeding, appointed a temporary receiver. Several days later, af[*615]ter an adversary hearing, the court imposed a permanent receivership. The Church has continually, though unsuccessfully, challenged discovery orders relating to the accounting action in state court.[2]

On January 16, 1979, the Worldwide Church filed an action under 42 U.S.C. § 1983 against California and individual state attorneys general in federal district court. The Church sought a preliminary injunction restraining the enforcement of the state receivership order during the pendency of the federal litigation, a permanent injunction against enforcement of the receivership, and damages for violations of its civil rights.

On February 22, the district court, relying on the abstention principles articulated in Younger v. Harris, 401 U.S. 37, 91 S.Ct. 746, 27 L.Ed.2d 669 (1971), denied preliminary injunctive relief and granted the state’s motion to “dismiss the matter.” The Church then filed a motion under Fed.R. Civ.P. 59(e), requesting the court to modify its memorandum and order to permit the Church to amend its complaint. The district court denied that motion in a memorandum and order dated October 12, 1979, stating that any amendment would be “futile.” This appeal followed.[3]

The Church initially contends that the district court’s finding that Younger abstention precluded preliminary injunctive relief was error and that injunctive relief should have been granted under the standards defined in Miss Universe, Inc. v. Flesher, 605 F.2d 1130, 1134 (9th Cir. 1979). Reliance on Younger, it is alleged, was inappropriate for either of two reasons. First, Younger did not apply because the enforcement of the receivership order which the Church sought to restrain is not a “pending state proceeding” nor does it implicate “important state interests.” See Moore v. Sims, 442 U.S. 415, 423, 99 S.Ct. 2371, 2377, 60 L.Ed.2d 994 (1979); Trainor v. Hernandez, 431 U.S. 434, 444, 97 S.Ct. 1911, 1918, 52 L.Ed.2d 486 (1977). Second, even if Younger could apply in this context, the state action either was based on a patently unconstitutional statute or was brought in bad faith, thereby bringing the case within recognized exceptions to the abstention doctrine. See Huffman v. Pursue, Ltd., 420 U.S. 592, 611, 95 S.Ct. 1200, 1211, 43 L.Ed.2d 482 (1975). The Church also argues that if abstention was proper, the district court erred in denying the Church the opportunity to amend its complaint to plead matters triggering either or both of the exceptions to Younger.

On the record then before it, the district court correctly invoked Younger abstention. Imposition of the receivership was an integral element of the ongoing state litigation. Enjoining enforcement of the receivership order would violate the principles of federalism, equity, and comity that Younger and related cases seek to preserve. See Huffman v. Pursue, Ltd., 420 U.S. at 601-604, 95 S.Ct. at 1206-1208; Younger v. Harris, 401 U.S. at 44, 91 S.Ct. at 750. The Church must exhaust its state appellate remedies in challenging the re[*616]ceivership before seeking relief in a federal court. Huffman, supra, 420 U.S. at 608-609, 95 S.Ct. at 1210-1211.

Investigation and regulation of fraud in charitable trusts, the state interest arguably implicated here, is an interest of the magnitude of controlling welfare fraud, Trainor v. Hernandez, supra, or regulating child custody, Moore v. Sims, supra.4 The Church contends that supervision of a religious institution’s internal finances is unconstitutional and, consequently, cannot be an “important state interest.” This type of argument, however, could be made in any federal litigation in which a plaintiff seeks to enjoin allegedly unconstitutional state proceedings, and, if accepted, would render Younger a nullity.

We are also unpersuaded that either of the exceptions to Younger abstention applies in this case. Even if the application of California Corporations Code § 9505 [5] to the Worldwide Church were unconstitutional, and we express no opinion on that question, the statute is not “flagrantly and patently violative of express constitutional prohibitions in every clause, sentence and paragraph, and in whatever manner and against whomever an effort might be made to apply it.” Younger v. Harris, 401 U.S. at 53-54, 91 S.Ct. at 755 (quoting Watson v. Buck, 313 U.S. 387, 402, 61 S.Ct. 962, 967, 85 L.Ed. 1416 (1941)). It is unquestioned that the state attorney general may constitutionally investigate and supervise the affairs of some charitable corporations.

Nor do the Church’s pleadings, in their present form, allege harassment or bad faith with sufficient specificity to trigger the second Younger exception. However, if the Church is permitted to amend its complaint, it might be able to allege facts demonstrating that the state action was brought in bad faith. Under Fed.R. Civ.P. 15(a), a party may, as a matter of right, amend its complaint once before the filing of a “responsive pleading” or the entry of final judgment following dismissal of its action. See Wright and Miller, Federal Practice and Procedure: Civil § 1483 (1971). Accord Breier v. Northern California Bowling Proprietors’ Ass’n, 316 F.2d 787, 789 n. 1 (9th Cir. 1963) (dictum). The state’s motion to dismiss was not a “responsive pleading” within the meaning of Rule 15(a), and the district court did not enter a final judgment dismissing the action. Accordingly, the Church retains its right of amendment under Rule 15. The district court erred in refusing to permit amendment of the complaint.

We affirm the denial .of the Church’s motion for a preliminary injunction and remand to allow amendment of the complaint.

1

California Corporations Code § 9505 provides:

“A nonprofit corporation which holds property subject to any public or charitable trust is subject at all times to examination by the Attorney General, on behalf of the State, to ascertain the condition of its affairs and to what extent, if at all, it may fail to comply with trusts which it has assumed or may depart from the general purposes for which it is formed. In case of any such failure or departure the Attorney General shall institute, in the name of the State, the proceedings necessary to correct the noncompliance or departure.”

On January 1, 1980, § 9505 was replaced by Corporations Code § 9230 which reads as follows:

"(a) Upon reasonable grounds to believe that the following condition or conditions have occurred or do exist, the Attorney General may, at reasonable times, examine a corporation to determine whether:
(1) The corporation fails to qualify as a religious corporation under this part; or
(2) There is or has been any fraudulent activity in connection with the corporation’s property; or
(3) Any corporate property is or has been improperly diverted for the personal benefit of any person; or
(4) Property solicited and received from the general public based on a representation that it would be used for a limited purpose other than general support of the corporation’s religious activities, has been improperly used in a manner inconsistent with the stated purpose for which the property was solicited; or
(5) There has been a substantial diversion of corporate assets from stated corporate purposes.
“(b) Such examination shall respect privileges enumerated in Division 8 (commencing with Section 900) of the Evidence Code and shall protect the confidential nature of membership lists by using such lists only in connection with the examination and any subsequent court proceeding. In addition, such examination shall not unnecessarily interfere with normal operations and religious observances of the corporation.
“(c) The Attorney General may institute an action in the name of the state to enforce the right of examination set forth in subdivision (a).
“(d) For reasonable cause, the Attorney General may institute an action in the name of the state:
(1) To establish that the corporation fails to qualify as a religious corporation under this part, and if a court so finds it shall enter an order that the corporation shall no longer operate as a religious corporation under this part.
(2) To correct any wrongful activity which has taken place in connection with or as a result of any condition or conditions set forth in paragraph (2), (3), (4) or (5) of subdivision (a).”
2

On three occasions, the United States Supreme Court has declined to review state court decisions sustaining the receivership or discovery orders relating to the state litigation. Worldwide Church of God, Inc. v. Superior Court of California, - U.S. -, 100 S.Ct. 2974, 64 L.Ed.2d -(1980); Rader v. Superior Court of California, 444 U.S. 916, 100 S.Ct. 230, 62 L.Ed.2d 170 (1979); Worldwide Church of God, Inc. v. Superior Court of California, 444 U.S. 883, 100 S.Ct. 172, 62 L.Ed.2d 112 (1979).

3

In March 1979, while the Church’s Rule 59(e) motion was still before the district court, the state trial court stayed imposition of the receivership after various church members and employees posted a $1,000,000 appeal bond. The stay was still in effect at the time this appeal was argued.

The state argues that the staying of the receivership renders most aspects of this appeal moot. We disagree. The alleged constitutional wrongs which the Church seeks to enjoin are “capable of repetition, yet evading review.” Dunn v. Blumstein, 405 U.S. 330, 333 n. 2, 92 S.Ct. 995, 998, 31 L.Ed.2d 274 (1972). The receivership may be reimposed at any time. Furthermore, the receivership is stayed only because church members and employees have assumed an extraordinary financial burden. Should the Church prevail in its action, those parties would be relieved of that obligation.

4

See Exchange Nat’l Bank of Chicago v. Abramson, 295 F.Supp. 87, 92 (D.Minn.1969). But cf. Securities & Exchange Comm’n v. Wencke, 577 F.2d 619, 623 (9th Cir.), cert. denied, 439 U.S. 964, 99 S.Ct. 451, 58 L.Ed.2d 422 (1978) (federal appointment of receiver proper when, on admitted facts, state receivership was a device to cloak continued fraud).

5

See supra note 1.