Downtown San Jose church faces lawsuit over mass stabbing attack

SAN JOSE — More than a year after five people were stabbed there in a brutal attack that sent shockwaves through the community, Grace Baptist Church in downtown San Jose is facing a new lawsuit that accuses it of failing to protect those who worked and took refuge on the property.

The lawsuit blames the church and its nonprofit partner, Grace Solutions, for allowing the November 2020 attack that killed two people and injured three more in a homeless shelter that operates out of the church. Fernando Jesus Lopez, who lived in the shelter at the time and now is awaiting trial for the stabbings, had a violent past and should not have been allowed to stay on the property, according to the lawsuit. It also accuses the church and the nonprofit of failing to provide security.

The allegations, filed earlier this month in Santa Clara County Superior Court, come as the nearly 100-year-old church is struggling with its enrollment and finances following the killings and the COVID-19 pandemic. The church is in talks to sell its property to a developer, despite the objections of some members of the congregation. And, citing safety concerns, the church’s new pastor has lost confidence in its homeless shelter — potentially threatening the future of a program that provides showers, meals and warm beds for dozens of unhoused people every winter night.

“I know that this is a difficult time for us, for the church and the entire community, and I solicit the prayers of the entire community as we continue to help these survivors heal,” said Rev. George Oliver.

The homeless shelter provides beds for about 40 people per night during the colder months, and offers meals, showers, clothing and other essentials to many more people year-round. It’s run by nonprofit Grace Solutions, which is separate from the church.

But the shelter appears to have a tense relationship with Oliver, who became senior pastor last year and was not part of the church when the attack occurred. Oliver said the shelter, which is now closed for the season, might not be allowed to reopen this winter thanks to a number of ongoing concerns the church has with Grace Solutions’ management — including lapses in security.

“We can’t be in a position where we aren’t absolutely sure our partners are doing everything to keep people safe,” Oliver said.

But Grace Solutions has no intention of giving up the church shelter, said Anthony Mastrocola, who works at the shelter and spoke on behalf of Grace Solutions senior staff. Mastrocola said he couldn’t comment on the lawsuit or related issues, such as security, but he said the shelter is a safe haven for some of San Jose’s most vulnerable people.

“We don’t have any plan to stop doing that anytime soon, if ever,” Mastrocola said. “We made a commitment to serve the people who are in the most need a while ago, and that’s just what we will continue to do regardless of any outside thing we can or can’t control.”

The lawsuit also alleges Lopez, who slept at the shelter, had a history of fighting and attacking people, and was feared by others in the program. He should have been ejected from the shelter, according to the suit.

At the time of the attack, Grace Solutions was paying $1,500 a month to use the church. Both the nonprofit and the church were required to carry a general liability insurance policy of at least $5 million, and an employer’s liability policy of at least $1 million.

The attacks and the pandemic took a toll on the church, Oliver said. When he started last year, membership was down to 42 people. Now, it’s up to 60. But the church is struggling financially, he said, and is moving to sell its property to a developer to make ends meet. Some of the land would be converted into housing, but the church would still have a facility on the property.

The lawsuit was filed on behalf of two plaintiffs — one is Beverly Paulson, who lost her husband, 45-year-old John Paulson, in the 2020 attack. John, who had been sleeping at the shelter off-and-on for years, was volunteering in the kitchen when he was killed, according to the lawsuit.

He and Beverly had been married just over a year.