Are Arbitration Contracts Upheld in Sexual Assault Cases?

In a recent legal case involving the Church of Scientology, David Miscavige, its leader, had a judge removed from a lawsuit where a woman accused the organization of sexual abuse and coercing children into marriage. The Church attempted to leverage an arbitration contract against the case, but the judge’s efforts to block it resulted in his removal. This has sparked questions about the validity of arbitration contracts, especially in sexual assault cases.

Brief background about what is happening with the case

According to a Law & Crime News report, the plaintiff, Jane Doe, sued the Church of Scientology. She alleges that she was groomed by the organization’s recruiter, Gavin Potter, at just 16 years old. The lawsuit states that Potter was “deputized, tasked, directed, deployed and ordered” to recruit young boys and girls to join the religious organization’s Sea Organization. If they did not obey the rules to get in or remain in, they allegedly would be forced to marry. Some of the children mentioned in the lawsuit are as young as 12.

Doe claims that Potter would flirt and use fear-tactics to encourage and entice young girls to join the organization. However, it would then turn into abuse. The Church of Scientology denies all allegations and says there were no wrongdoings whatsoever.

What is the arbitration contract involved in the case?

The arbitration contract signed by Doe in 2002 at the age of 27 waives her right to sue the Church and mandates arbitration. However, concerns over the contract’s fairness have been raised, leading to doubts about its enforceability. The arbitration contract was intended to be fair to both parties, but the judge, who has since been removed from the case, cited a previous instance where such a contract lacked fairness and was heavily biased, leading to it being declared unconscionable. The judge sought to prevent a similar situation in Jane Doe’s case by questioning the validity of the arbitration contract. However, those efforts are now inconsequential with the judge no longer involved in the case.

Signing an arbitration contract, like the one Doe signed, means opting for an alternative dispute resolution method instead of going to court. This entails bypassing the lawsuit process and judicial intervention. Instead, the dispute is brought before an arbitrator in an arbitration meeting, who listens to both sides and renders a decision. In Doe’s situation, the Church employs its private arbitration system, suggesting that the arbitrator likely possesses familiarity with Church practices.  This approach maintains confidentiality and keeps the dispute private between Doe and the Church.

It is worth mentioning that the Church of Scientology is not the only one that uses these types of contracts to handle disputes. Other religious organizations have used similar methods.

Are arbitration contracts legal?

Arbitration contracts are legal. The Federal Arbitration Act is a federal law that ensures the protection of many arbitration contracts as long as they are considered “valid, irrevocable, and enforceable.” However, while the contracts are generally legal, they may face scrutiny for being one-sided or unjust. Courts evaluate procedural and substantive unconscionability, considering factors like coercion during contract formation and fair terms. If deemed unfair, the contract may not be upheld in court.

For example, in Arnold v. Burger King, an employee filed a claim alleging that she was raped by her supervisor during her shift. Although she signed an arbitration contract, the court determined it was “overly broad and unconscionable.” In addition, the rape “fell outside of the scope of the employee’s work.” Therefore, the contract was unenforceable.

Examples of procedural and substantive unconscionability

When the court looks for procedural unconscionability, they evaluate how the contract was developed or created. On the other hand, when looking for substantive unconscionability, they determine whether the contract looks fair. Below, we will review a few procedural and substantive unconscionability examples.

Procedural unconscionability:

• How long the individual had to look over and decide whether to sign the contract
• Whether the individual was aware of their rights and what they would be giving up by signing the contract
• Whether the other party threatened or forced the individual to sign the contract
• Whether the individual fully knew or understood how important the contract was

Substantive unconscionability:

• Whether both parties mutually agreed on the contract
• Whether one-sided favors exist
• Whether there were overwhelming imbalances or unfairness in the obligations or requirements in the contract
• How much arbitration would cost the individual
• Signs that the evidence or relief that the individual would be able to obtain in public court is much higher

If you have recently been assaulted or abused by a member of a religious organization, employer, or anyone else, the Los Angeles sexual assault lawyers at Taylor & Ring are ready and available to legally assist you. Our team has built a national reputation fighting for survivors. We know and understand how difficult and complex these cases can be. To get help, please call our office or complete our contact form as soon as possible to schedule a free consultation.