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Arbitration

A federal appeals court enforced the decision of an arbitrator in an employment dispute between a church-operated school and its principal.

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Key point 10-16.8. Churches have various defenses available to them if they are sued as a result of a personal injury. One such defense is an arbitration policy. By adopting an arbitration policy, a church can compel members to arbitrate specified disputes with their church rather than pursue their claim in the civil courts.
Negligence as a Basis for Liability

* A federal appeals court enforced the decision of an arbitrator in an employment dispute between a church-operated school and its principal. The principal ('Julie') of a private Christian school was fired from her position, and she later sued the school for breach of contract and discrimination. The school asked the court to compel Julie to arbitrate her claims pursuant to an arbitration provision in her employment contract. Julie was reluctant at first to pursue arbitration because she was concerned that the ICC was ...

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Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

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  • September 1, 2006

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