STARKVILLE — The Mississippi State Court of Appeals overturned a 2020 civil suit ruling against then Second Baptist Church Pastor Joseph Stone and Head Deacon Terry Miller in a decision issued Tuesday.

The initial ruling, handed down by an Oktibbeha County Circuit Court jury, found Stone and Miller responsible for negotiating a deal, in May 2013, with Long Beach-based TCM Construction to build a new sanctuary for the church. Neither had permission from the church’s board of trustees.

The two were ordered to pay a combined $500,000 in damages as well as an additional $30,000 from Stone for “unjust enrichment,” after he withheld funds from the church’s offerings. Though the circuit court jury held Stone responsible for the $30,000, testimony at that trial stated the money withheld was actually handled and deposited by the deacons.

However, the appeals court looked to the church’s bylaws and a vote from its members not to pursue the lawsuit against the pastor and head deacon, as evidence to overturn the circuit court ruling.

“Stone and Miller argue that the judgment must be reversed and rendered because the Trustees lacked authority to file the lawsuit without the approval of SBC’s members — and clearly lacked authority to maintain the suit after a majority of SBC’s members voted against it,” read the court decision. “… We agree that the Trustees lacked authority to maintain the suit. Therefore, we reverse and render the judgment of the circuit court.”

The issue stemmed from Stone and Miller contracting Donald Crowther, TCM’s owner, for the project, and paying more than $454,000 for work that was never completed. The project never progressed past the initial dirt work.

Crowther pleaded guilty to fraud charges in July 2020 and was sentenced to five years in prison and five years probation. He settled a civil suit, solely against TCM, for $280,000, in October 2020.

Stone previously admitted to altering the signature page on the contract with TCM, having it require only one trustee signature instead of the entire board.

During an August 2016 church congressional meeting, a majority of church members voted, by secret ballot, not to pursue the lawsuit against Stone and Miller, the decision states.

A motion to dismiss was filed, but it was denied in September 2016.

“Accordingly, the circuit court erred by not dismissing the lawsuit after a majority of SBC’s members voted against it.” read the decision.

“SBC’s Constitution makes clear that it is a ‘democratic’ institution, that its ‘membership retains until itself the exclusive right of self-government in all phases of the spiritual and temporal life of this church,’ and that ‘the majority’ have ‘the right . . . to govern’ in the event of disagreement.”

The ruling states that the trustees will be responsible for the costs of the appeal.

Matt Baldridge served as the attorney for Stone and Miller, and the Carson Law Group, Pllc, served as counsel for the trustees.

Neither returned calls for comment before press time.

Stone is no longer the pastor for SBC and now pastors for New Hebron Missionary Baptist Church in Aberdeen.