Jump directly to the Content Jump directly to the content

Mosque Members’ Lawsuit Concerning Financial Improprieties Must Be Resolved By Binding Arbitration Due to Mosque Bylaws’ Arbitration Clause

Court concluded that the mosque's bylaws constitute a contract between it and plaintiffs.

Last Reviewed: March 9, 2021
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.

A New Jersey court ruled that a lawsuit that members of a mosque brought against other members as a result of alleged financial improprieties had to be resolved by binding arbitration as a result of an arbitration clause in the mosque's bylaws.

In 1989, a mosque was incorporated under the New Jersey Nonprofit Corporation Act. The mosque is a nonprofit charitable, religious, and educational organization. Its certificate of incorporation asserts its purpose is, among other things, to serve members of the Islamic faith by providing a house of worship, and its bylaws provide ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
  • June 19, 2017
  • Last Reviewed: March 9, 2021

Related ResourcesVisit Store

Internal Controls for Church Finances
Internal Controls for Church Finances
Learn how to protect your church's money.
Essential Guide to Money for Church Boards
Essential Guide to Money for Church Boards
Church board members should have a basic understanding of these financial issues.