Judge to Decide Lawsuit Against Evangelist Cerullo

A lawsuit pending against San Diego evangelist Morris Cerullo will be decided without a trial because a federal judge granted summary judgment Monday on the suit’s last remaining issue.

Judge Joe Anderson said he will decide how much collateral the minority partner in New Heritage USA must put up to cover possible claims made against a discount program he started and later abandoned. Cerullo stopped the program after his Malaysian business partners complained, but the partners didn’t agree to drop the lawsuit.

Cerullo and his partners last year bought the theme park developed by former PTL leader Jim Bakker. The Malaysian group contended Cerullo promoted the discounts to New Heritage USA to help pay off an $8.4-million loan he used to buy the property.

Cerullo must repay that loan from a subsidiary of his partners by Friday. The judge Monday denied an extension on the loan. Cerullo could forfeit his ministry building and a shopping center in San Diego if the loan is not repaid.

Also Monday, the judge denied another part of the suit that would have made Cerullo pay actual and punitive damages to his partners.

The partners’ attorney, Lorie Gildea, had argued Cerullo should pay their legal fees and out-of-pocket expenses amounting to about $12,000 because those costs would not have existed without Cerullo’s discount program.

“People at New Heritage had to spend time talking to (discount) card holders, addressing their concerns,” she said. “The value of that time is what we are seeking.”

Gildea also argued for unspecified punitive damages, saying Cerullo recklessly disregarded the rights of his partners by entering a partnership after he had started the discount program.

But Anderson denied damages, saying the fees and out-of-pocket expenses were similar to most contract disputes and did not qualify as actual damages. Without actual damages, there can be no punitive damages, he said.

The summary judgment effectively makes other points in the suit moot.

After the hearing, Cerullo told reporters he was pleased the judge would decide the suit.

“We’re more than gratified,” he said. “This is a great victory for us.”

Cerullo would not say whether he would have the loan money ready by Friday.

Another lawsuit is pending against the evangelist concerning his fund-raising practices. The judge said Monday that that suit will be tried Feb. 1.

The Christian theme park was scheduled to reopen last May. Extensive renovations and the lawsuits have postponed the opening date indefinitely, New Heritage officials have said.