To Direct Board of Directors to Review and Publish Comprehensive Accounting of LCMS Monies Spent on HotChalk, Concordia University Texas, and Hong Kong International School Association Limited Litigation

Official Workbook overture source text

8-18 
To Direct Board of Directors to Review  
and Publish Comprehensive Accounting  
of LCMS Monies Spent on HotChalk,  
Concordia University Texas, and Hong Kong 
International School Association Limited Litigation 
WHEREAS, The delegate convention of the Synod is the 
legislative assembly that ultimately legislates policy, program, and 
financial direction for the Synod’s work and “reserves to itself the 
right to give direction to all officers and agencies of the Synod,” 
who are accountable to the Synod for their actions (Bylaw 1.4.1); 
and 
WHEREAS, Bylaw 1.5.4 provides for full financial disclosure of 
the Synod’s and its agencies’ books and records to any member 
congregation, while recognizing specified, limited exceptions for 
donor and personnel confidentiality, in‑process negotiations, 
information whose disclosure would breach a legal obligation or 
affect pending litigation, and preliminary or nonfinal information; 
and 
WHEREAS, The Board of Directors (BOD) serves as the Synod’s 
legal representative with general management and supervision of 
the Synod’s business and legal affairs and receives copies of legal 
opinions and related written counsel (Bylaw 3.3.4.4); and 
WHEREAS, Litigation related to HotChalk and Concordia 
University, Portland, concluded in mediation with a confidential 
settlement announced on September 23, 2025, just prior to trial, and 
the Synod has stated it denies HotChalk’s allegations while 
welcoming resolution; and 
WHEREAS, On September 10, 2025, the Synod announced it had 
filed legal action in Hong Kong against Hong Kong International 
School Association Limited (HKISAL) concerning administration 
of HKISAL under the operating agreement, indicating potential 
additional legal expenditures and obligations; and 
WHEREAS, Clarity about legal expenditures, reimbursements, 
and net financial impact strengthens stewardship, accountability, 
and trust across the Synod; therefore be it 
Resolved, That the Synod in convention direct the BOD, assisted 
by the Chief Financial Officer (CFO) and the Office of the 
Secretary, to conduct and publish a comprehensive accounting and 
analysis of Synod monies expended on legal matters related to the 
HotChalk matter, litigation with or relating to Concordia University 
Texas, and the legal action involving HKISAL, from inception of 
such matters through the date of publication, to include at 
minimum: total legal and professional fees, settlement or judgment 
amounts (reported to the extent permitted by law and the settlement 
agreement announced Sept. 23, 2025), insurance reimbursements, 
third‑party cost recoveries, grants or transfers to related entities for 
these purposes, and the net impact on restricted a
nd unrestricted 
Synod funds; and be it further 
Resolved, That the report include a clear statement of the net 
financial effect of the settlement and related litigation, as well as the 
Hong Kong legal action, on the Synod’s mission and ministry, 
identifying impacts on triennial budgets, mission grants, domestic  
and international mission work, pastoral formation, university 
support, use of reserves, insurance reimbursements, and any 
ongoing obligations, presented in plain language; and be it further 
2026 Convention Workbook
446 FINANCE