Enforceability of Conciliation Clauses

Numerous courts have addressed whether contracts requiring mediation and/or arbitration pursuant to The Rules of Procedure for Christian Conciliation™ are enforceable. The courts have also addressed whether proceedings according to such Rules are valid and enforceable.

The following courts have found that contracts requiring the parties to resolve disputes according to the biblical principles, and specifically according to a process set forth in The Rules of Procedure for Christian Conciliation™, originally published by Peacemaker Ministries (now published by ICC Peace) are enforceable. The following Christian conciliation clauses have been found to be valid and enforceable: Sample Contract Clauses.

Mediation Cases

Encore Productions, Inc. v. Promise Keepers,
53 F. Supp2d., 102 (D.Colo. 1999)  Link to Case

This case held:

“Ordinary contract principles determine who is bound by written arbitration provisions. See Fisser v. International Bank, 282 F.2d 231 (2d Cir.1960). Encore and PK executed the Service Contract which contains an enforceable arbitration provision. The arbitration process between these corporations contemplates participation by their principals. By executing the Service Contract on behalf of Encore, Encore’s principals consented to participate in an arbitration governed by the Rules of Christian Conciliation.

Furthermore, although Encore is correct that courts cannot employ “religious organizations as an arm of the civil judiciary to perform the function of interpreting and applying state standards,” here the parties themselves agreed and consented to arbitration before Christian Conciliation. (Encore’s Objection to PK’s Motion to Dismiss or Stay Proceedings, p. 7). Although it may not be proper for a district court to refer civil issues to a religious tribunal in the first instance, if the parties agree to do so, it is proper for a district court to enforce their contract. Therefore, Encore is now precluded from challenging the enforcement of this valid agreement. See Elmora Hebrew Center, 593 A.2d at 731.

Encore voluntarily signed a contract containing a written arbitration agreement that clearly and expressly disclosed that arbitration would be submitted to Christian Conciliation. This manifests intent to be bound by Christian Conciliation’s decree and a knowing and voluntary waiver of their rights to pursue litigation in a secular district court. See id. And, significantly, in a letter written to counsel for PK on September 10, 1998, well after the date of the Termination agreement, counsel for Encore stated that Encore was “willing to discuss initiating Christian Conciliation as mandated under the contract.” (Exhibit 2 to PK’s Reply to Encore’s Response, emphasis added).”

Easterly v. Heritage Christian Schools  Link to Case
Case No. 08-1714 (USDC S.D. Ind. Aug. 26, 2009) held that a school employment contract containing a clause requiring the parties to submit their dispute to mediation and binding arbitration according to The Rules of Procedure for Christian Conciliation, published by Peacemaker Ministries was enforceable.

Other cases upholding conciliation clauses referencing or requiring the application of The Rules of Procedure for Christian Conciliation™, or use of the Institute of Christian Conciliation include:

A.  Dayspring Community Church of Auburn, Inc v. Harvestime, Inc, Harvestime Ministries, Bradley Dean Oaster/
Cause No. 17D01-0505-PL-013/In the DeKalb Superior Court, Third Floor Courthouse, Auburn, Indiana, 46706/ 23rd Day of June, 2005/ Judge Kevin P. Wallace

B.  Woodlands Christian Academy v. Logan,
Not Reported in S.W.2d, 1998 WL 257002, Tex.App.-Beaumont, May 21, 1998 (NO. 09-97-348-CV)

Arbitration Cases

Cases upholding the enforceability of clauses requiring faith-based arbitration include:

A.  Jenkins v. Evangelical Lutheran Church, 825 N.E. 2d 1206 (Ill. App. 2005).

B.  Kyer v. Teen Challenge of Florida, Inc. No. 8:07-cv-1824-T-23-TBM. Not Reported in F.Supp.2d, 2008 WL 1849024 M.D.Fla.,2008.

C.  Graves v. George Fox University, No. CBO6-395-S-EJL, August 16, 2007, Not Reported in F.Supp.2d, 2007 WL

D.  Answers in Genesis of Kentucky Inc. v. Creation Ministries Intern., Ltd. Civil Action No. 2008-53 (WOB) August 04, 2008. Slip Copy, 2008 WL 5657681 E.D.Ky.,2008.

E.  Weibust v. Woodlands Christian Academy, No. 09-10-00010-CV, 2010 (9th Court of Appeals, Tex)

Articles

Arbitration Case Study (ACSI)  Link
Binding Arbitration Agreements that Work:  (ACSI) Circuit City v. Adams 2001 Link