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LCMS 2026 Convention Workbook: Reports and Overtures, PDF page 481

business and financial affairs (Bylaw 3.3.4.4 –5) and require 
reporting to the Synod in convention concerning the administration 
of those affairs (Bylaw 3.3.4); and 
WHEREAS, These and other Bylaws of the Synod establish an 
accountability structure that depends upon the keeping and 
reporting of official records and financial information for the 
governance of the Synod, while permitting appropriate 
confidentiality through exec utive session, personal privacy, and 
legal privilege; and 
WHEREAS, When legal judgments or settlements impose closed-
door processes, sealed statements, or broad nondisclosure 
obligations, the Synod’s ability to exercise that accountability is 
materially diminished; therefore be it 
Resolved, That the Synod affirms a presumption of transparency 
in the negotiation and approval of legal judgments and settlements 
entered into by or on behalf of the Synod, such that material 
information concerning the nature and resolution of matters is not 
unnecessarily concealed from congregations of the Synod; and be it 
further 
Resolved, That this presumption of transparency shall be 
exercised with Christian care and prudence, permitting 
confidentiality as necessary to protect personal privacy, especially 
of victims or minors, pastoral or medical information, and 
privileged legal communications; and be it further 
Resolved, That the Synod shall not enter into legal judgments 
and settlements that prevent those charged with ecclesiastical 
governance and supervision from receiving the information 
reasonably necessary to carry out their responsibilities on behalf of 
the Synod; and be it further 
Resolved, That the financial terms of legal judgments and 
settlements entered into by the Synod shall ordinarily be subject to 
disclosure to the Synod, except where limited confidentiality is 
necessary to protect personal privacy or required by law; and be it 
further 
Resolved, That the BOD provide a regular, appropriately 
redacted summary report to the Synod in convention of all legal 
judgments and settlements entered during the preceding triennium, 
sufficient to inform the Synod of their general nature, scope, and 
financial i mpact, without imposing undue administrative burden; 
and be it finally 
Resolved, That for the purposes of this resolution, “sealed” or 
“concealed” information shall include legal judgments and 
settlement provisions that prohibit the retention of records 
necessary for governance and supervision, broadly restrict 
disclosure of material  facts to congregations of the Synod, or 
impose nondisclosure obligations that effectively prevent 
meaningful reporting, while not including narrowly tailored 
confidentiality necessary for the protections named above. 
Circuit 27 (Livonia) 
Michigan District 
Ov. 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
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