Hearing canceled in FLDS sect land sale dispute

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ST. GEORGE -- A judge paused on Friday a 3-year-old fight over land in a polygamous church trust so the parties can try to negotiate a settlement outside of court.

Forged by the Utah attorney general's office, the agreement calls for an immediate halt to nearly a dozen lawsuits in state and federal courts involving the United Effort Plan Trust, the charitable arm of the Fundamentalist Church of Jesus Christ of Latter Day Saints.

A settlement -- which attorneys predict could be reached within weeks -- could pave the way for the FLDS to regain control of trust land that has been under state control since 2005.

Judge Denise Lindberg said the parties are showing a good-faith effort to resolve issues related to the trust.

"The best thing that I can do for you today is to give you that space," said Lindberg, a judge from the 3rd District who scheduled the hearing in southern Utah's 5th District so church members could have easier access to the court.

A hearing had originally been scheduled for Lindberg to consider whether court-appointed fiduciary Bruce Wisan could sell a 700-plus-acre parcel from the $110 million communal property trust to pay legal and management fees.

FLDS church members sued unsuccessfully to try to stop the hearing. They also hoped to block the sale of the parcel -- called Berry Knoll -- in northern Arizona that had been designated for a future temple site.

That sale is now on hold.

"Absolutely, it's a huge victory," FLDS spokesman Willie Jessop said Friday outside the 5th District courthouse in St. George where more than 2,500 members of the FLDS church gathered to await a decision. More than 4,000 church members had signed a petition asking Lindberg not to approve the Berry Knoll sale.

Wisan gained control of the trust in 2005 after allegations from the Utah attorney general's office that church leaders had fleeced its assets and ignored lawsuits that left the trust vulnerable to liquidation.

Since then Wisan has restructured the trust to allow individuals to get deeds to the homes in the twin FLDS-controlled communities of Hildale, Utah, and Colorado City, Ariz.

But the trust was established on the religious ideal of the Holy United Order, which calls for members to share assets and resources for the benefit of all. The faith views Wisan's secular management of the trust as a violation of their constitutional right to practice their religion.

The FLDS have largely ignored Wisan's management and in recent months filed lawsuits to regain control of the trust and stop Wisan from selling off trust property.

Assistant Utah Attorney General Tim Bodily, who initiated the 2005 court action, said Friday's truce began during conversations with FLDS attorney Jim Bradshaw and Jessop earlier this week.

"We believe that there is a real strong possibility that global resolution can be reached in which the property is preserved and that people can have some peace of mind," Bodily said. "Unfortunately it's been expensive, it's been a long process, but with the cooperation we've seen within the last three or four days I think it should give everyone hope that the conflict is well behind us."

The first settlement talks were to begin Friday afternoon, Bodily said.

Just what a global settlement might include is unclear. At stake are a host of issues, including finding a way to pay Wisan, his attorneys, and other firms an estimated $2 million in outstanding bills. Complicating issues is that Wisan expanded the umbrella of trust beneficiaries to include not only church members in good standing but also former church members and awarded them some properties.

The FLDS will want Wisan removed as the trust's manager and will seek to restore the original communal and religious purposes of the trust, Jessop said.

"The state has to recognize that these people practice a religion and a way of life that is different," Bradshaw said.

Wisan's attorney, Jeff Shields, said he is encouraged by the participation of the FLDS and believes that "when people talk, resolutions can happen."

Shields said a settlement agreement could come soon.

"We're not looking at months, we're looking at weeks," he said, adding that implementation of an agreement could take much longer. "You still have huge, huge issues over who gets what property. It's not going to be, 'Draw it out of a hat."'

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