Bern Church Dispute Escalates to Federal Court: Millions at Stake in Asset Division
Bern, Switzerland – A simmering conflict within the Reformed Church in Bern has boiled over, with the Paulus and Bethlehem parishes announcing they will appeal to the Federal Court over the approval of a parish merger agreement. The core of the dispute? A potentially multi-million franc disagreement over the distribution of assets, particularly holdings within the church-owned real estate company, RefBernImmo AG. This is a developing story with significant implications for church governance and property law in Switzerland, and a prime example of how even faith-based organizations aren’t immune to complex financial and legal battles. This breaking news is being closely monitored for its SEO impact and potential to rank on Google News.
The Roots of the Rift: Merger Rejection and Asset Allocation
Last year, the Paulus and Bethlehem parishes stood apart from other Reformed communities in Bern and Bremgarten, voting against a broader merger. While the larger parish of Bern proceeded with the consolidation – slated to take effect in 2027 – the dissenting parishes are now fighting to ensure a “fair and equitable distribution” of the resulting assets. At the heart of the issue is the merger agreement’s stipulation that shares in RefBernImmo AG, which manages a substantial property portfolio, will not be transferred to the outgoing parishes.
RefBernImmo AG: A Property Portfolio Worth Millions
RefBernImmo AG currently holds 24 properties with a book value of 35 million Swiss francs (approximately $39 million USD). These aren’t grand cathedrals, but rather practical holdings – residential buildings and parsonages – strategically managed to generate revenue for church maintenance and administrative costs. The crown jewel of the portfolio is the former Calvinhaus on Marienstrasse, recently transformed into the upscale “Marienhof” apartment complex, boasting a book value of nearly 15 million francs. This conversion highlights a broader trend within the church: adapting to dwindling membership and rising property costs by leveraging real estate assets.
The Billion-Franc Question: Valuation and Fair Share
According to Benedict Christ, President of the Paulus parish, the current agreement drastically undervalues the parishes’ share of RefBernImmo AG. While the merger agreement assigns them 17% of the equity capital based on current membership numbers, valued at roughly one million francs, Christ argues that a market valuation would reveal a far greater worth – potentially exceeding 90 million francs. This would translate to a claim of over 15 million francs for Paulus and Bethlehem. “The regulations in the merger agreement are ‘unsustainable under the rule of law’,” Christ stated, emphasizing the need for a balance sheet reflecting true market value. This isn’t simply about money; it’s about principle and ensuring a just outcome for parishes that chose a different path.
Canton’s Response and the Road to Federal Court
The parishes initially appealed to Government Councilor Evi Allemann’s Interior and Justice Directorate, arguing that the canton has a responsibility to ensure equal treatment. However, their intervention was dismissed, with the canton pointing to the overwhelming 80% approval of the merger by the wider parish community. Undeterred, Paulus and Bethlehem are now taking their case to the Federal Court, believing it’s the only avenue to secure a fair settlement. Christ insists they aren’t attempting to derail the merger, viewing it as a potentially “win-win situation,” but are determined to protect their financial interests.
This case underscores the increasing complexity of managing religious organizations in the modern era. Balancing tradition with financial realities, navigating legal challenges, and ensuring equitable outcomes for all stakeholders are becoming increasingly common hurdles. The outcome of this dispute will likely set a precedent for future mergers and asset divisions within the Swiss Reformed Church, and potentially beyond. Archyde.com will continue to follow this breaking news story and provide updates as they become available, offering in-depth analysis and expert commentary on the evolving situation. Stay tuned for further developments and insights into this fascinating case of faith, finance, and the law.
By Bernhard Ott, Bern Department Editor
