State Case
Local Implications
Paulson v. Grace Baptist Church
When tragedy struck a homeless shelter operating on church-leased property, it sparked questions about duty and responsibility. The case illustrates a critical reality: outreach without adequate safety measures can expose ministries to significant legal consequences.
What You Need to Know
In November 2020, John Paulson was fatally stabbed and James Chelley seriously injured at a San Jose homeless shelter operated by the nonprofit, Grace Solutions, which leased the property from Grace Baptist Church. The attacker, Fernando Lopez, was a shelter resident with a known history of violence.
A lawsuit filed by Paulson’s widow and Chelley alleged that both the nonprofit and the church—the lessor—were aware of Lopez’s prior assaults but failed to take appropriate action. According to the complaint, they did not remove Lopez from the shelter, warn other residents, or provide the promised security—failures that the plaintiffs claimed directly led to Paulson’s death and Chelley’s injuries. They sought damages for wrongful death, negligence, loss of consortium, and punitive damages, arguing that the defendants acted with conscious disregard for resident safety.
After three years of time-consuming litigation, the case was resolved through a confidential settlement and was officially dismissed.
What Your Ministry Can Do
Facility Use Contracts: Agreements with outside entities should specify the scope of allowed activities, responsibilities for maintenance and security, insurance needs, indemnification protection, and expectations for conduct and oversight.
Develop Clear Safety Policies: If engaged in outreach ministry, it is critical to establish clear procedures for handling threats, emergencies, and behavioral issues. Ensure staff and volunteers have been trained in de-escalation, first aid, and emergency response.
Document Incidents Thoroughly: Keep comprehensive records of all reported incidents, confrontations, or threats to establish a clear chronology and help identify individuals who pose a risk of harm.
