Friday, March 09, 2012

Court Upholds Scientology Church Arbitration Clause

Today's Tampa Bay Times reports that in Clearwater, Florida, a Pinellas County Circuit Court judge has ruled that an arbitration agreement in a Church of Scientology contract with two former members is enforceable. Plaintiffs Lynne Hoverson and Bert Schippers were declared "suppressive" by the Church for publicly criticizing it.  The couple then sued for return of $27,583 that they had made in advance for services never received. The agreement the couple had signed designates prepayments  for services as donations and requires any claim for a refund to be decided by a panel of three active Church of Scientology members. The couple had challenged the arbitration clause, arguing that it was buried in fine print and that it did not allow them to consult with attorneys or negotiate. They say the arbitrators would not be permitted to rule in their favor by the Church. The court disagreed and upheld the clause.

The court however allowed the couple's civil case to proceed as to a refund claim for $7500 placed on account on the Church's cruise ship, because no agreement had been signed as to those funds. The court also permitted them to proceed with their claim for the return $147,183 in "freeloader debt'' they paid in 2008. The amount reimbursed the Church for training and services received by the couple's children while they were members of the Chuch's Sea Org.