Crouch Urged to Accept ‘Christian Arbitration’ of Dispute

Addressing the first of several complaints against Tustin-based Trinity Broadcasting Network, a committee of the National Religious Broadcasters has urged TBN President Paul F. Crouch to seek “Christian arbitration” to resolve a bitter dispute with a former business associate.

The decision appears to be at least a partial victory for Crouch’s longtime adversary, the Rev. Keith A. Houser of Dallas, who has sought such a resolution for nearly 3 years.

Trinity owns more than 140 Christian TV stations in the United States and 2 dozen others around the world. Its 24-hour programming is also beamed by satellite to scores of affiliated stations.

The NRB’s five-member ethics committee strongly recommended that Crouch and Houser submit the “alleged business practices that relate to contractual disputes” to “a recognized board of Christian arbitration.” A copy of the panel’s findings was provided to The Times.

Houser said Thursday that he welcomes the finding. Efforts to reach Crouch were unsuccessful. Ethics panel chairman Richard Bott, of Independence, Mo., declined comment.

In his complaint last year to the panel, Houser accused Crouch of unethical conduct in connection with Trinity’s 1981 purchase of WTBY-TV in Poughkeepsie, N.Y., which Houser helped found. In court filings and FCC hearings, Houser called the episode a “hostile takeover” that, he said, was part of Crouch’s pattern of gaining control of stations to expand the network.

Crouch responded, in a letter to the ethics panel, that Houser’s “actions are a transparent and hypocritical attempt to extort more money out of TBN” for his interest in the New York station.

The panel’s finding noted that the dispute has also been the subject of litigation before the Federal Communications Commission and is in civil litigation in New York.

Hailing the decision, Houser said he has “been on record with the Christian Conciliation Service of Orange County Inc. since September, 1986, as being ready, willing and able” to submit the matter to such a arbitration body.

In his complaint to the ethics panel, Houser wrote: “On no less than six occasions, I have personally asked Paul Crouch and/or his attorneys to go to Christian arbitration.”

Christian arbitration is a method of solving disputes that is based on biblical principles and avoids the civil courts.

Attached to the complaint was a copy of a letter, dated June 11, 1987, from Crouch’s attorney, Richard G. Gay of Washington, to Houser, declining an offer of Christian arbitration. Gay wrote that “ ‘Christian’ arbitration often turned out to be neither equitable nor Christian.”

In its two-page statement, the ethics panel said it had divided Houser’s complaint into two parts, recommending that the portion dealing with contractual matters be submitted to arbitration. It reserved judgment on the remainder of the complaint, which dealt with other allegations of unethical behavior by Crouch, including mistreatment of Trinity employees.

At least four other complaints--involving former employees at TBN’s flagship station, KTBN in Tustin, and Trinity stations in Tacoma and Miami--are still being considered by the panel. A source close to the panel said he expects a decision regarding the remaining complaints within 30 days.

Crouch’s future in the NRB--a voluntary trade organization--is uncertain for reasons apart from the findings of the ethics panel.

In response to the national scandals involving such televangelists as Jim Bakker and Jimmy Swaggart, the NRB in 1988 established its Ethics and Financial Integrity Commission, a self-regulating subsidiary organization. Membership in Eficom was made mandatory for remaining in the NRB.

Crouch has previously cited his support for Eficom in congressional testimony, but Philip Little, a private investigator who is a spokesman for Trinity, said this week that Crouch had not decided whether to file an Eficom application.

One of the key provisions of Eficom is that no nonprofit religious broadcasting organization with an annual income of more than $100,000 can be controlled by a board dominated by family members or employees. Organizations that do not meet this requirement are given 2 years to change their composition.

All of Trinity’s governing boards are controlled by Crouch family members and Trinity employees, according to material provided by the ministry.

A considerable number of other NRB members have not filed applications yet, said Arthur C. Borden, Eficom’s administrator, but many have said they will be filing soon.

Some, such as Crouch, may be waiting to see how serious the NRB is about requiring Eficom membership.

“We may have to kick a couple of them out to get their attention,” Borden said.