Escolar Documentos
Profissional Documentos
Cultura Documentos
Plaintiffs-Appellants/Cross-Appellees,
vs.
Defendants-Appellees/Cross-Appellants.
__________________________________________________________________
On Appeal from the United States District Court
Middle District of Florida, Tampa Div. – Case No. 8:13-cv-220-T-27TBM
__________________________________________________________________
In compliance with Fed. R. App. P. 26.1, 11th Cir. R. 26.1-1, 11th Cir. R.
26.1-2(a), and 11th Cir. R. 26.1-3, the undersigned hereby certifies that the
following persons and entities have an interest in the outcome of this case:
C-1
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Case No. 18-13452-B
Garcia, et al v. Church of Scientology Flag Service Organization, et al.
17. Weil, Snyder, Schweikert & Ravindran, P.A. – Counsel for Appellants
C-2
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reasons stated in the brief, the district court did not have jurisdiction to decide the
citizenship and with no other basis for federal court jurisdiction, and this court
In Appellees’ view, the facts and law in this respect are so clear that no purpose
reach the plaintiffs’ appeal, the grounds set forth are so insubstantial in light of the
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TABLE OF CONTENTS
Page
CORPORATE DISCLOSURE STATEMENT AND CERTIFICATE
OF INTERESTED PERSONS ...............................................................................C-1
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TABLE OF CITATIONS
Cases
Ainsworth v. Schoen,
606 So. 2d 1275 (Fla. 3d DCA 1992) ....................................................................55
Am. Union of Baptists, Inc. v. Trustees of Particular Primitive Baptist Church,
335 Md. 564 (1994) ..............................................................................................77
Amos v. Glynn County Bd. of Tax Assessors,
347 F.3d 1249 (11th Cir. 2003) ............................................................................19
AMS Staff Leasing, Inc. v. Taylor,
2015 WL 71705 (Fla. 4th DCA Jan. 7, 2015) ................................................ 56-57
Anders v. Hometown Mortg. Serv., Inc.,
346 F.3d 1024 (11th Cir. 2003) ............................................................................55
AT&T Mobility, LLC v. Concepcion,
563 U.S. 333 (2011) ................................................................................. 50, 54, 55
Basulto v. Hialeah Auto.,
141 So. 3d 1145 (Fla. 2014) .............................................................. 50, 51, 56, 58
BDO Seidman, LLP v. Bee,
970 So. 2d 869, (Fla. 4th DCA 2007) ...................................................................72
Beach Resort Hotel Corp. v. Wieder,
79 So. 2d 659 (Fla. 1955) .....................................................................................56
Belcher v. Kier,
558 So. 2d 1039 (Fla. 2d DCA 1990) ............................................................ 56, 57
Belleri v. United States,
712 F.3d 543 (11th Cir. 2013) ................................................................................1
Berg v. Berg,
2008 WL 415562 (N.Y. Sup. Ct. 2008)...............................................................77
Best Canvas Prods. & Supplies, Inc. v. Ploof Truck Lines, Inc.,
713 F.2d 618 (11th Cir. 1983) ....................................................................... 17, 24
Bland v. Health Care & Ret. Corp. of Am.,
927 So. 2d 252 (Fla. 2d DCA 2006) .....................................................................57
Brea Sarasota, LLC v. Bickel,
95 So. 3d 1015 (Fla. 2d DCA 2012) .....................................................................57
Carden v. Arkoma Assocs.,
494 U.S. 185 (1990) ..................................................................... 18, 25, 26, 27, 28
Church of Scientology v. City of Clearwater,
2 F.3d 1514 (11th Cir. 1993) ......................................................................... 60, 67
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Other Authorities
Fed. R. App. P. 28 (a)(4) and (5)................................................................................. 32
Fed. R. Civ. P. 12 (b)(1) .............................................................................. 6, 10, 19, 20
9 U.S.C. §1, et seq. (Federal Arbitration Act) .................................................. 41, 43
26 U.S.C. §170. ........................................................................................................67
28 U.S.C. §1332 ................................................................................................ 19, 31
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(“FSSO”) (“the Churches”) submit this combined Brief (1) In Support of the
Appellants/Cross-Appellees Luis A. Garcia Saz and Maria Del Rocio Burgos Garcia
jurisdiction, is set forth first, for reasons this court has emphasized:
granting the Garcias’ motion to amend the complaint and denying the motions to
dismiss for lack of subject matter jurisdiction are reviewable because those motions
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1. After the district court compelled arbitration and stayed this action,
plaintiffs requested religious arbitration from the International Justice Chief (“IJC”)
including, inter alia, against four non-diverse parties. The arbitration proceeded and
rejected plaintiffs’ arbitration claims against the non-diverse parties on the merits.
The district court denied plaintiffs’ motion to vacate, and plaintiffs have appealed
from that decision. Did the district court lack subject matter jurisdiction to decide
the motion to vacate and does this court lack appellate jurisdiction over plaintiffs’
2. Where the district court lacked subject matter jurisdiction over the
Complaint because three defendants were non-diverse and the Complaint alleged the
the district court, prior to ordering arbitration, erroneously permit plaintiffs to amend
defendants’ motion to dismiss the amended complaint where both the original and
amended complaints alleged that the remaining diverse defendants acted as partners
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4. Did the district court erroneously hold plaintiffs were not bound by the
factual allegations of their original Complaint, including that all five defendants
defendants had made the representations upon which plaintiffs’ fraud claims were
based, did the district court, prior to ordering arbitration, erroneously permit
venturers and to re-allege their fraud claims exclusively against the remaining
diverse defendants, where the defendants had demonstrated that the new allegations
6. Did the district court err in declining to resolve factual disputes material
to jurisdiction where defendants submitted evidence that the amended complaint was
Proceedings Below
Plaintiffs filed this lawsuit on January 23, 2013. (DE11) [AA Tab 2]. In
addition to FSO and FSSO, plaintiffs sued Church of Scientology Religious Trust
1
References to “DE” are to docket entries. References to “AA” are to Appellants’
Appendix. References to “SA” are to Supplemental Appendix. References to the
Appendices are repeated only where necessary for the convenience of the Court.
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and U.S. IAS Members’ Trust (“USIMT”) and alleged all “Defendants acted in
separately alleged a joint enterprise between and among the defendants. Id. at 22,
¶76 (“The efforts of the IAS and FLAG 2 constitute a joint enterprise”); at 23, ¶79
(“The efforts of IAS and SHIP constitute a joint enterprise”); at 34, ¶139 (“Ship and
IAS operated a joint enterprise”); at 28, ¶100 (“The efforts of CSRT and FLAG
sought to recover donations of $340,000 to CSRT. (DE1 at 9-10, ¶31). They alleged
support the “Super Power Project” to build a church cathedral in Clearwater, Florida
for the provision of advanced religious services to Scientologists from throughout the
world: “Between 1998 and 2005,3 representatives of CSRT, acting principally through
their agent, Charmaine Roger, made repeated requests for funding from plaintiffs.”
(Id.; see also ¶¶32-36, 86, and 93). Plaintiffs alleged CSRT raised more funds than
2
Plaintiffs referred to FSO as “FLAG” and FSSO as “SHIP.”
3
Plaintiffs’ Complaint filed in January 2013 would appear to be barred by the
statute of limitations if it were litigated in civil court.
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necessary for the project and used them for other unspecified purposes,4 and asserted
claims against CSRT for fraud and Deceptive and Unfair Trade Practices (DE1 at
24, 26). Plaintiffs also alleged fraud against FSO on the basis that it and CSRT
they made to IASA 5 and USIMT from 1997-2007. (DE1 at 15-20, ¶¶53-68).
not used for those purposes. (Id., ¶69). Plaintiffs also asserted fraud against FSO
4
Plaintiffs’ Brief falsely states that “at least $200 million had been raised, although
less than half of that was spent on construction.” Garcia Br. at 2. No facts support
that allegation; plaintiffs never attempted to prove it at the arbitration. CSRT, in
contrast, certified that every dollar raised for the project was in fact expended on it.
(DE276-3 at 21 [SA Tab 31]). Plaintiffs did not controvert that showing.
5
While plaintiffs named IASA in the caption and served IASA, in the body of their
complaints they refer only to purported actions of “IAS” and “IAS officers.” IAS is
an unincorporated association headquartered in England. IASA is the United States
administrative corporation for IAS; its “nerve center” is in Los Angeles. (DE90 at
13 [SA Tab 4]). IASA was responsible for the fundraising activities at issue in the
instant case, and it was IASA officials who solicited donations from plaintiffs.
(DE119-3 [SA Tab 16]). USIMT is a California trust that serves as a qualified
recipient of deductible charitable donations to IASA. (DE119-1 at 6). It was to
USIMT that plaintiffs paid donations solicited by IASA representatives.
6
See n. 5, ante.
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and FSSO, alleging they constituted a joint enterprise with IASA. (Id., ¶¶76, 79, 133,
139).
Finally, plaintiffs alleged “breach of contract” claims against FSO and FSSO,
Plaintiffs, however, did not allege they had signed or verbally agreed to a contract.
Rather, they alleged Scientology policy and practice required the Churches to return
such donations and asked the court to enforce that purported religious policy and
the district court did not have jurisdiction when the lawsuit was filed. (DE113 [SA
to dismiss reflects that CSRT, USIMT, and IASA are not diverse from Plaintiffs”).
to Fed. R. Civ. P. 12(b)(1). (DE90 [SA Tab 4]). Specifically, since defendants CSRT
and USIMT are trusts, the court was required to look to the citizenship of each trustee.
Laborers’ Local 938 Joint Health and Welfare Trust v. B.R. Stames Co., 827 F.2d
1454, 1457 (11th Cir. 1987). Several trustees of each trust were citizens of California,
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determined by looking to its “nerve center,” Hertz Corp. v. Friend, 559 U.S. 77, 92-
93 (2010), which was in California. Defendants demonstrated the trustees of the two
trusts were citizens of California and the nerve center of IASA was in California.
(DE90 at 6-13).
did not take depositions and served limited interrogatories and document requests
directed solely to domicile of the trustees and the nerve center of IASA. Defendants
amended complaint (“AC”) (DE108 [SA Tab 13]), which proposed to drop the three
California defendants and to re-assert the fraud claims against only FSO and FSSO.
Plaintiffs alleged that the fraudulent representations they previously had alleged to
have been made by CSRT and IASA had been made by FSO and FSSO.
Specifically, with respect to the plaintiffs’ donations for the Super Power
Project, plaintiffs now alleged that the representations plaintiffs formerly asserted to
have been made by CSRT officials were in fact made by unnamed “FLAG [FSO]
representatives,” who, “on [never explained] information and belief” were “contracted
employees of [FSO].” (DE114, ¶¶27-30, 35 [AA Tab 3]). Plaintiff Luis Garcia’s
declaration (DE93-2) stated that all representations made to him about the Super
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Power Project had been made by representatives of FSO, that CSRT had no
(DE1, ¶¶31, 32-36, 53-68, 86, 93). As shown below, they also were false.
initiatives” contradict not only the original Complaint, but themselves. On one hand,
made that the “Senior [FSSO] fundraiser” fraudulently solicited donations. These
allegations are contrary to the original Complaint. On the other hand, however, the
AC also states plaintiffs “rel[ied] upon the representations of the IAS” and “paid
$1300 to the IAS;” “three IAS fundraisers badgered plaintiffs for a substantial
donation;” “an IAS fundraiser met with Plaintiff” to ask for a donation; and FSO and
FSSO “sponsored fundraising activities for the IAS” and such activity was part of a
“fraudulent enterprise” among FSO, FSSO, and IAS. (DE114, ¶¶57, 59, 61, 63, 65).
It repeats the allegations from the Complaint that Michelle Villeneuve solicited
donations for the initiatives but refers to her as a “[FSO] fundraising representative
stated in the passive voice, was that “information ... has been learned throughout the
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process of discovery in this matter,” (DE108 at 1 [SA Tab 13]), but they pointed to
the motion to amend. (DE110). First, defendants argued that plaintiffs were bound
by the factual allegations in their original Complaint that their donations had been
solicited by representatives of CSRT and IASA and that all original defendants were
discussion, post), the amendment was futile because it did not and could not cure the
jurisdictional defect.
Second, defendants showed that even on its face the AC did not cure the
of various corporations and related entities, … trusts and acronyms …” (DE114, ¶4)
Indeed, the allegation of joint venture or partnership was repeated in the very next
paragraph, although the identities of CSRT and USIMT (but not IASA) as members
¶21). It was plaintiffs’ burden to allege the identity and citizenship of all partners
and joint venturers to demonstrate complete diversity. See discussion, post at 18-20.
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The failure to do so itself was grounds to dismiss the AC. Plaintiffs further alleged,
moreover, that FSO, FSSO and IASA were members of a “fraudulent enterprise”
discussed below.
Nevertheless, the district court granted plaintiffs’ motion to amend and denied
defendants’ motion to dismiss as “moot.” (DE113 at 1 [SA Tab 14]). The court
construed the allegation that FSO and FSSO acted “in concert either as agents or
only that they acted with themselves and not with others, despite the never repudiated
allegations from the original Complaint that they acted in such capacities with the
After plaintiffs filed their AC, FSO and FSSO again moved to dismiss.
their motion. Lawrence v. Dunbar, 919 F.2d 1525 (11th Cir. 1990) (Matters outside
the pleadings are considered in factual attacks). That evidence showed that the AC
falsely attributed the acts upon which plaintiffs based their claims of fraud to FSO
and FSSO, and not to CSRT, IASA, and USIMT as they had alleged in their original
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Complaint, all designed to preserve diversity jurisdiction that did not exist. See
The district court denied the motion. (DE124 [SA Tab 21]). It held that
plaintiffs were not bound by their earlier allegations, including that all original
strained reading of the AC’s allegation that FSO and FSSO acted in concert with
partners or joint venturers as not referring to entities other than the named
defendants, again in the face of the contrary allegation of the original Complaint.
And it rejected defendants’ attempts to make a factual showing that the AC was a
sham pleading designed to create the illusion of diversity, because it found that the
“jurisdictional facts are intertwined with the merits of the claim,” (citing Odyssey
Marine Expl., Inc. v. Unidentified Shipwrecked Vessel, 657 F.3d 1159, 1169 (11th
Cir. 2001)).
The district court then stayed the case pending arbitration. (DE189). Plaintiffs
submitted a request for arbitration to the Convening Authority for the arbitration, the
plaintiffs named as defendants not only FSO and FSSO, but also CSRT, IASA, and
USIMT. (DE210-3 at 1 [SA Tab 26]). The IJC asked plaintiffs to clarify their
arbitration claims. In response, Mr. Garcia wrote that plaintiffs’ claims “are as set
forth in the original complaint filed with Judge Whittemore,” which he provided to
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the IJC (emphasis added). (Id. at 2). In addition, plaintiffs sought arbitration of fraud
The arbitration took place on October 23-24, 2017, as more fully discussed in
Appellees Responding Brief, post at 32, et seq. The arbitrators issued a decision
rejecting plaintiffs’ claims (except for a claim for return of unused accommodations
at religious retreats), including specifically each of their fraud claims against the
vacate the arbitration decision. (DE272). Plaintiffs sought review, inter alia, of the
arbitrators’ denial of their fraud claims against CSRT, IASA, USIMT, and CSOC.
The district court denied the motion to vacate. It specifically found that the
arbitrators had considered and decided plaintiffs’ fraud claims against the
California defendants. (DE282 at 7 [AA Tab 10]). Plaintiffs appealed from the
Statement of Facts
approximately 28 years. (DE195 at 8-9 [SA Tab 25], L.Garcia testimony). They
engaged in the life of their religion and participated in Scientology’s unique religious
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practices of auditing and training.7 (Id. at 9-10, 13). Around 2009-2010, plaintiffs
suffered a loss of faith. (Id. at 14-15). Mr. Garcia complained that Scientology
him in an independent religion. (Id. at 37, 40). As a result, the Church of Scientology
International, the senior management body in the religion, declared the Garcias to
be “suppressive persons” and expelled them from the Church, the equivalent of
original Complaint, and not FSO or FSSO, as plaintiffs falsely pleaded in their AC.
Contrary to Mr. Garcia’s declaration that CSRT performs no functions, has no assets,
and has no employees, the record establishes that CSRT has existed since 1981; had
17 full-time staff members; contracted for construction of the Super Power Project
building in Clearwater, Florida, the Church’s spiritual headquarters; paid for the
construction of the Super Power Project building out of funds it raised; is the owner
of the Super Power Project building; has numerous offices and activities separate
7
“Auditing” is a form of spiritual counseling to achieve spiritual progress.
“Training” is study of the Scientology-related writings, lectures, tapes and films of
Scientology Founder L. Ron Hubbard which are the basis of the religion. (DE8-1,
¶¶6-8 [SA Tab 1]).
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and distinct from FSO and FSSO; and its representatives are religious workers of
CSRT and not employees of FSO or FSSO. (DE104-16, 17 [SA Tabs 6, 7])(DE119-
2, 4, 6).
fraudulently solicited his donations for the Super Power Project, CSRT’s staff
member Charmaine Roger solicited the donations. (DE104-17 [SA Tab 7])(DE119-
6). Ms. Roger’s declarations established that the Super Power Project was a CSRT
project; Ms. Roger used an identified CSRT office as her base; she wore clothing
and insignia identifying her as CSRT staff; and she always asked that Super Power
Power Project checks payable to CSRT, received receipts for each donation from
CSRT, and received from CSRT written commendations and letters of appreciation
confronted with numerous receipts and commendations from CSRT for his
donations, he claimed he never noticed that the documents were from CSRT even
Tab 5])(Garcia Depo. Tr. at 23-24, 27-28, 32, 33)(invoice from CSRT “to me reflects
that CSRT acknowledges receiving $10,000 from me via Visa, which is different
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meaningless. It didn’t mean anything. It probably didn’t even register that it was
on this letter”). Upon further questioning, Mr. Garcia testified that he did not know
the organizational affiliation of the people who made representations to him and who
solicited his donations and that he did not understand the hierarchy or structure of
the Church or what entities did what. (Id. at 84-86). Given this lack of knowledge,
Mr. Garcia’s incredible testimony that he did not know on behalf of which entity
Ms. Roger made the representations upon which he based his fraud claims is not
they solicited donations from him; and he knew he was donating to IAS projects.
(Id. at 64-67, 71, 75-77, 79). Plaintiffs’ donations for IAS causes were confirmed
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SUMMARY OF ARGUMENT
than the limits authorized by Article III and created by Congress within those
boundaries. State of California v. Southern Pac. Co., 157 U.S. 229, 261 (1895). The
burden of pleading and proving facts supporting subject matter jurisdiction is on the
plaintiff. 5 C. Wright and A. Miller, Federal Practice & Procedure §1350 (3d ed.
2018 update); McCormick v. Aderholt, 293 F.3d 1254, 1257 (11th Cir. 2002). A
motion to dismiss for lack of subject matter jurisdiction is not limited to the face of
a complaint. A party moving to dismiss may bring to the court’s attention facts
outside the complaint, and the court must consider those facts in determining the
motion, and if necessary resolve factual disputes. Lawrence v. Dunbar, 919 F.2d
2. After the district court stayed the case and compelled arbitration,
including the very non-diverse parties that plaintiffs originally had sued in federal
court but had dropped in their AC. Having lost those claims at arbitration, plaintiffs
moved the district court to vacate the decision including with respect to the non-
diverse parties. The district court denied their motion and specifically rejected on
the merits plaintiffs’ claims against non-diverse entities as set forth in their original
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entities they had conceded destroyed jurisdiction over their original Complaint, and
then returning to federal court to challenge the arbitration decision, plaintiffs ousted
the district court of subject matter jurisdiction, if it ever existed. Vaden v. Discover
Bank, 556 U.S. 49, 63 (2009)(in determining subject matter jurisdiction, court should
“assume the absence of the arbitration agreement and determine whether it would
have jurisdiction under Title 28 without it”). This court lacks appellate jurisdiction
allegation against FSO and FSSO but failed to identify additional members of the
joint venture. The court erred in holding that plaintiffs were not bound by the factual
allegations in their Complaint that all five original defendants were part of a joint
are proof possessing the highest possible probative value. Indeed, facts judicially
admitted are facts established not only beyond the need of evidence to prove them,
but beyond the power of evidence to controvert them.” Best Canvas Prods. &
Supplies, Inc. v. Ploof Truck Lines, Inc., 713 F.2d 618, 621 (11th Cir. 1983). The
district court failed to recognize that plaintiffs’ allegations that all original
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defendants acted as a partnership or joint venture required the court to consider the
citizenship of all defendants, even if they had not been named or defendants were
The district court magnified its errors in denying the Churches’ motion to
dismiss the AC. Given the prior allegations of joint venture/enterprise among the
original defendants and the AC’s adoption of the same language, as well as the AC’s
network of entities,” the plaintiffs had done precisely what is not permitted: “The
C. Wright and A. Miller, Federal Practice & Procedure §3630.1. Plaintiffs cannot
avoid Carden v. Arkoma Assocs., 494 U.S. 185 (1990) by dismissing three members
factual showing that the AC was a sham pleading to preserve the illusion of diversity
jurisdiction. The district court erroneously held it could not resolve factual disputes
going to the jurisdictional question because those facts were inextricably intertwined
with the merits. But facts are inextricably intertwined only “when a statute provides
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the basis for both the subject matter jurisdiction of the federal court and the
plaintiff’s substantive claim for relief.” Odyssey Marine, 657 F.3d at 1169-70. Here
the diversity statute arose under federal law while plaintiffs’ claims were unrelated
ARGUMENT
This court reviews de novo a district court’s denial of a Rule 12(b)(1) motion
to dismiss for lack of subject matter jurisdiction. Sinaltrainal v. Coca–Cola Co., 578
F.3d 1252, 1260 (11th Cir. 2009), including whether a district court properly
interpreted and applied the provisions of 28 U.S.C. §1332. See Amos v. Glynn Cty.
Bd. of Tax Assessors, 347 F.3d 1249, 1255 (11th Cir. 2003).
by Article III and created by Congress within those boundaries. Marbury v. Madison,
1 Cranch 137, 173-174 (1803). “The jurisdiction is limited, and manifestly intended
California v. Southern Pac. Co., 157 U.S. 229, 261 (1895). The burden of pleading
and proving facts supporting subject matter jurisdiction is on the plaintiff. McNutt
v. Gen. Motors Acceptance Corp., 298 U.S. 178, 182 (1936). See 5 C. Wright and
A. Miller, Federal Practice & Procedure §1350 (3d ed. 2018 update)(“[T]he burden
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of proof on a Rule 12(b)(1) motion is on the party asserting that subject matter
jurisdiction exists”); McCormick v. Aderholt, 293 F.3d 1254, 1257 (11th Cir. 2002).
limited to the face of a complaint. Rather, a party moving to dismiss may bring to
the court’s attention facts not apparent on the face of the complaint, and the court
must consider those facts in determining the motion. Lawrence v. Dunbar, 919 F.2d
1525, 1529 (11th Cir. 1990); 5 C. Wright and A. Miller, §1350 (“The district court,
not a jury, must weigh the merits of what is presented on a Rule 12(b)(1) motion to
dismiss, including resolving any issues of fact, and decide the question of subject
jurisdiction, City of Indianapolis v. Chase Nat’l City Bank, 314 U.S. 63, 77 (1941),
and doubts are resolved against jurisdiction. Kantor v. Wellesley Galleries, Ltd., 704
F.2d 1088, 1092 (9th Cir. 1983); Shamrock Oil & Gas Corp. v. Sheets, 313 U.S. 100,
108–09 (1941). A plaintiff bears the burden of proving complete diversity. City of
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federal legislation: it bestows no federal jurisdiction but rather requires for access to
a federal forum an independent jurisdictional basis over the parties’ dispute.” Vaden
v. Discover Bank, 556 U.S. 49, 59 (2009). The Vaden Court instructed that courts
controversy to determine whether the claims come within the subject matter
jurisdiction of the federal courts. Id. at 62. Specifically, a court should “assume the
jurisdiction under title 28 without it.” Id. at 63. Vaden’s “look through” approach
Port Group, 832 F.3d 372, 381-89 (2d Cir. 2016); Ortiz-Espinosa v. BBVA
Securities, 852 F.3d 36, 45 (1st Cir. 2017). See also Community State Bank v. Strong,
allegations in attempts to preserve their claims while giving the illusion of diversity
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jurisdiction. Plaintiffs presented to the arbitration panel claims based upon their
original Complaint. Their arbitration claims explicitly and in detail were brought
against CSRT, IASA, USIMT, and CSOC, in addition to FSO and FSSO. The
California entities. (DE276-7, 8; DE282 at 7 [AA Tab 10]). After the arbitration
decision, plaintiffs returned to the district court and asked it to vacate a decision
involving the very California entities that they previously conceded defeated
California entities, and then returning to federal court to challenge the arbitration
required by their agreements, and had they included claims against non-diverse
parties, they subsequently could not have invoked diversity jurisdiction to seek to
Paragraph 23 of the original Complaint (DE1) alleged that FSO and FSSO
acted as partners or part of a joint venture with the non-diverse original parties.
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omitting the identities of the other members of the joint venture: “Defendants acted
plaintiffs’ burden to plead and prove the non-diverse citizenship of all unnamed
The district court held, however, that the allegation in AC ¶21 alleged merely
a joint venture or partnership between the two remaining named defendants, and not
among the original five defendants or anyone else. The court both misread the AC
Complaint.
not modify “one another,” but rather are alternative objects of the preposition “of.”
Plaintiffs allege that the named defendants acted “in concert as agents or principals
another.” This is clear when ¶21 is read together with ¶20, which alleges that FSO
other members of which once again are intentionally not named) with respect to
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“fraudulent enterprise” among FSO, FSSO, and IASA, an allegation the district court
Second, the court ignored that the identical language was used to describe the
relationship of the five defendants in the original Complaint. If the district court was
correct that the language alleges a joint venture or partnership between the two
defendants in the AC, then it clearly alleged a similar relationship with the non-
diverse defendants named in the original Complaint. The plaintiffs must be bound
Best Canvas Prods. & Supplies, Inc. v. Ploof Truck Lines, Inc., 713 F.2d 618, 621
(11th Cir. 1983)(additional citations omitted). See also Cooper v. Meridian Yachts,
Inc., 575 F.3d 1151, 1177-78 (11th Cir. 2009); Shuler v. Ingram & Assocs., 441 Fed.
The district court, however, held plaintiffs were not bound by their prior
factual allegations and were free to ignore or contradict them. The court mistakenly
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Dade Housing Agency, 501 F.3d 1241, 1243 (11th Cir. 2007)). But in that and other
cases, the issue was not whether a plaintiff is bound by factual allegations in her
prior complaint, but rather whether she could dismiss a federal question legal claim
the effect of which would be to render the case beyond the jurisdiction of a federal
court. Nothing in that line of cases suggests a plaintiff may ignore earlier factual
enterprise or partnership must be diverse from the opposing party. Whether called
a “joint venture” or “joint enterprise,” the legal consequences are the same. See
Kislak v. Kreedian, 95 So. 2d 510, 514 (Fla. 1957). Such joint enterprise/joint
venture is treated identically as a partnership. Id. (“It has been universally held that
while ‘joint venture’ and partnership are separate legal relationships, both
later dropped as parties. See Carden v. Arkoma Assocs., 494 U.S. 185, 186, 192-
Grupo Dataflux v. Atlas Global Grp., L.P., 541 U.S. 567, 572-73, 578 (2004)(While
25
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jurisdictional defect, the “equation of a dropped partner with a dropped party is flatly
Fla. 2016).
Carden was not limited to partnerships; the citizenship of all members of any
jurisdiction. See Carden, 494 U.S. at 195 (“There could be no doubt … that at least
pursuant to … [t]he tradition of the common law, which is ‘to treat as legal persons
only incorporated groups and to assimilate all others to partnerships.’” Carden, 494
U.S. at 190. This Circuit, in holding that the citizenship of a limited liability
company “is the citizenship of each of its members,” relied on “the long-standing
the citizenship of all the members composing the organization.” Rolling Greens
MHP, L.P. v. Comcast SCH Holdings LLC, 374 F.3d 1020, 1021 (11th Cir.
26
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613 F.3d 1079, 1087 (11th Cir. 2010)(“the Court in Carden provided a general rule:
[T]he Carden principle is not limited to the facts of that case and
applies to a wide range of unincorporated associations. Accordingly,
whenever a partnership, a limited partnership, a joint venture, … a
religious or charitable organization, … or a similar association brings
suit or is sued in a federal court, the actual citizenship of each of the
unincorporated association’s members must be considered in
determining whether diversity jurisdiction exists.
13F C. Wright and A. Miller, Federal Practice & Procedure §3630.1 (3d ed. 2018
update); see id. n.5 (citing joint venture cases); Schiavone Constr. Co. v. City of New
York, 99 F.3d 546, 548 (2d Cir. 1996)(Plaintiff was a joint venture between two
citizenship of each of its members”); Indiana Gas Co., Inc. v. Home Ins. Co., 141
F.3d 314, 316 (7th Cir. 1998)(joint venture/partnership of various corporations and
8
As noted, plaintiffs alleged that “the Scientology movement … is comprised of
various corporations and related entities, … trusts and acronyms …” (DE114, ¶4)
which “function as an interrelated and interdependent network of entities.” (Id., ¶20).
27
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citizenship.” 13F C. Wright and A. Miller, Federal Practice & Procedure §3630.1.
See E.R. Squibb & Sons, Inc. v. Accident Cas. Ins. Co., 160 F.3d 925, 931 (2d Cir.
must be considered, even though only lead underwriter was named defendant). This
approach is very similar to the one we take here,” with the distinction being that in
Squibb the plaintiff sued only the lead underwriter, not the unincorporated syndicate,
while in Osting-Schwinn, the plaintiff sued the unincorporated syndicate. 613 F.3d
at 1089 n.6. The result was the same – the citizenship of all members (including
Carden by dismissing three members of what plaintiffs alleged was a joint venture
or partnership and proceeding with their lawsuit against only two members
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The district court failed to recognize that the amended complaint was a sham
pleading submitted to create the illusion of diversity jurisdiction. The district court
First, the court improperly held, as discussed above, that plaintiffs were not
bound by their prior judicial admissions and were free to file an amended complaint
that directly contradicted the allegations of their original Complaint. In ¶31 of the
original Complaint, the plaintiffs set forth detailed allegations of fraud committed
employee of non-diverse defendant CSRT. (DE1, ¶31 [AA Tab 2]). Other
paragraphs also set forth detailed allegations that several IASA officials had made
false representations on behalf of IASA. (Id., ¶¶53, 59, 61 (“an IAS officer”); ¶¶55,
57, 63, 65 (“Michelle Villeneuve, an IAS representative”)). Yet in the AC, those
allegations as to the identity and representative capacity of CSRT and IAS officials
not only were omitted, but they were replaced by directly contrary allegations that
the representations upon which the fraud claims were based had been made by
representatives of FSO and FSSO, although, as shown above, even that allegation
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demonstrating that the alleged representations upon which plaintiffs based their
complaints were made, if at all, precisely by the individuals and on behalf of the
Nevertheless, the district court not only declined to hold plaintiffs to their
judicial admissions, but also held it could not resolve the contradiction because Mr.
Garcia’s testimony created an issue of fact.9 (DE124 at 6). While the court
factual resolution, it held that rule did not apply because subject matter jurisdiction
was “inextricably intertwined” with the merits, citing Odyssey Marine, which
with the merits of a plaintiff’s substantive claims. 5 C. Wright and A. Miller, Federal
Practice & Procedure §1350. But that exception is narrow and well-defined:
statute provides the basis for both the subject matter jurisdiction of the federal court
9
In fact, it did not because Garcia admitted he lacked knowledge of the hierarchy or
structure of Scientology churches or what entities did what. See ante at 15.
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and the plaintiff’s substantive claim for relief.” Odyssey Marine, 657 F.3d at 1169-
substantive claim. Plaintiffs’ substantive claims arise under state law and are not
intertwined with §1332 within the meaning of the Odyssey Marine exception.
which plaintiffs are legally bound and because of the defendants’ uncontroverted
dismiss them as parties and to substitute sham allegations against the remaining
At no point did the district court have subject matter jurisdiction. Plaintiffs’
attempts to create the illusion of diversity are proven baseless by their own
pleadings. When compelled to try to prove their claims before the arbitration panel,
10
Accord, Gonzalez v. United States, 284 F.3d 281 (1st Cir. 2001); Sizova v. Nat’l
Inst. of Standards & Tech., 282 F.3d 1320 (10th Cir. 2002).
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plaintiffs reversed course for the second time and returned to their original
Such creative license with the facts should not be countenanced in the federal courts.
JURISDICTION11
As set forth above, the district court lacked subject matter jurisdiction over
plaintiffs’ complaints and motion to vacate the arbitration decision, and this court
above.
11
The “Jurisdictional Statement” in plaintiffs’ Brief fails to meet the requirements
of FRAP 28(a)(4)(A-D). It improperly avoids addressing, inter alia, the question of
whether the district court and this court have subject matter jurisdiction.
12
Plaintiffs fail to meet the requirements of FRAP 28(a)(5) and Circuit Rule 28-1(h)
to identify the issues presented for review in their appeal.
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binding arbitration before three Scientologists in good standing with the senior
Scientology church, and to forego resorting to civil courts for resolution of such
disputes was enforceable under the Federal Arbitration Act with respect to plaintiffs’
3. Whether the district court properly held that such agreements were
refund claims through the Scientology arbitration process, and stayed proceedings?
Scientologists is mandated by important tenets of the religion. All persons who wish
under the robust and comprehensive Scientology Ethics and Justice System that
known to law,” Dominion Video Satellite, Inc. v. Echostar Satellite LLC, 430 F.3d
33
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1269, 1275 (10th Cir. 2005). It is even more limited when an arbitration is conducted
under religious aegis and doctrine. Lang v. Levi, 16 A.3d 980, 989 (Md. App. 2011)
(“The addition of the religious context further narrows the standard to make our
intervention nearly impossible”). “This Court reviews de novo questions of law, such
the parties to arbitrate), but accepts the district court’s findings of fact that are not
clearly erroneous.” Multi–Fin. Sec. Corp. v. King, 386 F.3d 1364, 1366 (11th Cir.
2004).
often distorted and inaccurate portrayal of the facts and record. It raises arguments
that were waived below. The district court engaged in a thorough review of the
factual and legal issues and properly held that plaintiffs’ claims must be submitted
Additional Facts
and parishioners. The system was described in a book written by L. Ron Hubbard
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entitled Introduction to Scientology Ethics. (DE174, Ex. 26).13 In it, Mr. Hubbard
demanded that “we must use Scientology … justice in all our affairs.” (Id. at 296).
He asserted his belief that in civil courts “truth has little bearing on findings” and
that “we have a superior law code and legal system which gives real justice to
Scientology churches resolve all disputes among each other through the Scientology
internal justice system. (DE8-1 at 3-4 [SA Tab 1]). Scientologists believe that
system works faster and with less random uncertainty than the civil justice system
and is far less expensive. (Id.) Moreover, many of the issues that may arise in such
Mr. Garcia shared those beliefs and engaged in a thorough study of this system
by completing a course at his local church. (DE195, H’rg Tr. at 22 [SA Tab 25]).
He favorably compared the Scientology system of justice and dispute resolution with
13
Book admitted as Ex. 3 at 2/18/15 hearing. See DE175 and 183.
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The current [civil] justice system is not too worried about establishing
the truth about something. … The Scientology … system is a sane one.
It’s true justice and its object is not to suppress or punish but to
rehabilitate. It’s just great.
(Tr. 27). Garcia acknowledged that “those were [his] true sentiments at the time.”
(Id.)14
3 [SA Tab 2]). The provisions of the agreements relevant to arbitration include:
14
The Scientology doctrine that any dispute between Scientologists and/or their
churches will be resolved by the Scientology internal justice system and not the civil
courts is hardly unique. Similar provisions apply in many religions. See, e.g.,
Hosanna Tabor Evangelical Lutheran Church and Sch. v. EEOC, 565 U.S. 171, 194
(2012)(noting rule of Lutheran Church that all disputes between parishioners or
between parishioners and church be submitted to internal dispute resolution) and
204-205. (Alito, J., concurring).
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at the time that the internal Scientology system of justice was fair” and that he
“accepted the idea that Scientologists in good standing would decide any
disagreements that came up between [him] and the church.” (DE195, Tr.19-20).
These include:
IAS often undertakes public service activities, among its functions. As stated on the
gift form (DE104-20, 21 [SA Tabs 10-11]), donations to IAS are made to further its
Power Project which built the religion’s cathedral in Clearwater, Florida or the
building of local Scientology churches, called Ideal Orgs. Such donations are made
to the church responsible for the project, which with respect to the Super Power
Project was CSRT, which built and owns the building. (DE104-16 [SA Tab 6]). The
donation forms state that donations are not refundable. (DE104-18, 19).
15
See ante at 5, n.5.
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deductible donations and specifies that “A return of donation is neither a legal right
a gift and is not something that one gives with the expectation of getting it back.”
which a donor, “under particular and compelling circumstances” (id.), may seek to
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specifically acknowledged having read and understood the Policy Directive and
enrollment forms I signed numerous times. I agree that these forms state that ‘a
published policies and procedures relating to the Claims Verification Board.’ It also
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under the Federal Arbitration Act, 9 U.S.C. §1, et seq. (DE8). The motion was based
provision, holding that it was enforceable, encompassed the disputes set forth in the
unconscionable under Florida law. The court stayed further judicial proceedings.
(DE189). This Court dismissed plaintiffs’ appeal sua sponte for lack of appellate
jurisdiction. (DE205).
once again changed allegations. Now, they specified that their claims were based on
their original Complaint after all and named as defendants the very three non-diverse
entities – CSRT, IASA, and USIMT – that they had dropped from their Complaint
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previously unasserted claims for return of donations for a church building (“Ideal
Org”) and donations for religious services to the Church of Scientology of Orange
As a result, the fraud claims for which plaintiffs sought arbitration were their
original claims against CSRT, IASA, and USIMT that were no longer part of this
case and a new claim against CSOC that never was. The only fraud claims they
alleged against FSO and FSSO at the arbitration were those in the original Complaint
that FSO and FSSO were part of a joint venture with CSRT, IASA, and USIMT.
all arbitrators must be Scientologists in good standing with CSI, to ensure “that the
with the ecclesiastical nature of the procedures and the dispute, claim or controversy
to which those procedures relate.” (DE8-3 [SA Tab 2]). The Agreements clearly
would then select the second arbitrator and the two arbitrators would select the third,
good standing as an arbitrator for over a year, repeatedly offering individuals who
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were not in good standing with CSI. 16 The IJC made eight separate written offers of
names of Scientologists in good standing (the Churches had not contacted any of
them), cumulatively totaling 244 (DE235 at 10 [Tab 28]), but plaintiffs refused to
pick any person on such a list.17 Ultimately, the court, after several unsuccessful
Arbitration Act (9 U.S.C. §5), directed the Churches to provide a list of 500
randomly and confidentially selected potential arbitrators from that list. The court
directly and confidentially communicated with the potential arbitrators and settled
measures to ensure that no party knew the identity of the chosen arbitrators until the
16
Plaintiffs repeatedly chose names from the small group of individuals who, like
them, had splintered from the Church and engaged in virulent and offensive attacks
upon the Church and its leadership. Such persons clearly were not Scientologists in
good standing. (DE210, 224, 231). Similarly, as the district court noted, “three
individuals proposed by Plaintiffs [] are also represented by Plaintiffs’ counsel and
have asserted claims against the Church similar to Plaintiffs’ claims. … Moreover,
Plaintiffs rejected or ignored offers by [IJC] Ellis to provide them with lists of
qualified arbitrators.” (DE215 at 5 and n.6 [SA Tab 27]).
17
The court expressed frustration at plaintiffs’ refusal to choose from hundreds of
names provided to them: “Therein is the problem. You just asked me to direct them
to give you a list of members in good standing in the LA area. … They have done
that. And you have refused or declined to select any of them. That’s bordering on
failure to comply with a court order and it’s close to justifying a dismissal for lack
of prosecution as a sanction. I will leave it at that, sir, because the message has to be
loud and clear to your clients.” (DE235 [SA Tab 28], Tr. at 9-10).
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eve of the arbitration or communicated with the chosen arbitrators until the
6. The religious arbitration took place over two days, October 23-24,
with inaccuracies and falsehoods. It is taken exclusively from the declaration of Mr.
Garcia in support of his motion to vacate the arbitration decision. The district court
On the first day, the IJC provided the arbitrators with materials explaining
their roles according to Church written policy and submitted to them written
evidence and claims from both sides, met with plaintiffs to explain the procedures,
and received from them their proposed written exhibits and reviewed them.18
(DE276-1, IJC Aff. at 2 [SA Tab 30]). The IJC gave the arbitrators written
18
In a preposterous statement, plaintiffs argue that “on the day before the arbitration
hearing, it is undisputed that Defendants spent also the entire day with the arbitrators,
outside the presence of the Plaintiffs.” Br. at 47. First, no one, including the IJC,
spent time with the arbitrators the day before the arbitration began; the date of first
contact was October 23, 2017, the first day of a two-day arbitration. Second, on that
first day, no representative of “Defendants,” i.e., FSO or FSSO, met the arbitrators
at all. The only person to meet with the arbitrators was the IJC, who was the Con-
vening Authority for the arbitration. Third, in his unrebutted declaration, the IJC
stated that he met with the arbitrators for a total of about one hour over the course of
two days, the same amount of time he spent meeting with plaintiffs. (DE276-1 at 4,
¶11 [SA Tab 30]).
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instructions setting forth the nature of the proceedings. The instructions stated, “You
the Garcias have been declared.” (DE276-4, original bold [SA Tab 32]). The IJC
also provided the arbitrators (and plaintiffs) with relevant Scientology religious
and their Enrollment Agreements.19 (DE276-1 at 2). Later that day the IJC provided
both the arbitrators and plaintiffs with a letter from the Church Claims Verification
Board explaining that it was the response by the Church parties to plaintiffs’ claims.
(Id.; DE276-3 [Tab 31]). 20 The arbitrators then studied the applicable religious
policies and the evidentiary materials with which they had been supplied.
19
According to Mr. Garcia, the IJC stated that he was “hatting” the arbitrators, which
he suggested was a nefarious effort to “train” them to reject plaintiffs’ claims. Such
“hatting” consisted of nothing more than providing them with the appropriate written
religious policies and his written instructions, which took well less than an hour.
(DE276-1 at 2, 4).
20
Plaintiffs claim that the IJC “also gave the arbitrators two reports from Mr.
Garcia’s confidential Priest-penitent Ethics File” which were “irrelevant” and
“intended only to prejudice plaintiffs.” Br. at 48. This also is wrong. First, the
documents in question were exhibits to the Claims Verification Board submission
referred to in the text above. (DE276-3 at 14-20, 29-30). Second, on their face, the
documents were written by Garcia, were not of a confessional nature and could not
have come from a privileged confessional file. Third, the documents were
devastating to Garcia’s overall credibility and his claim that he was fraudulently
induced to donate money for the Ideal Org for CSOC. Garcia related that he had a
“perception” that he and his wife were “opinion leaders” and that they needed to lead
by making a substantial donation. After discussing with his wife, they donated
$350,000, which is the major portion of the donation that they now claim they were
defrauded into making. (Id. at 29). The second document was a long hand-written
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Plaintiffs presented the IJC with 54 documents, totaling 268 pages 21, they
wished to introduce. (DE276-1 at 3). The IJC “went through each of these
Procedures, whether each exhibit should be allowed or disallowed.” (Id.) The IJC
prepared a document showing each exhibit offered by the Churches and by plaintiffs,
a brief description of the exhibit, whether it was allowed or not and the grounds for
any disallowance. (DE276-5 [SA Tab 33]). The exhibits he “excluded were things
like newspaper articles and internet postings having nothing to do with plaintiffs’
claims, incomplete documents, and Church policies with notations by Mr. Garcia.”
(DE276-1 at 3 [SA Tab 30]). The IJC provided the Church policies, without
on or discuss the policies with the arbitrators. They never did. The IJC “admitted
“participation summary” in which Mr. Garcia recounted his extended support for the
Ideal Org project, among other matters. (Id. at 14-20).
21
Mr. Garcia claimed he submitted 900 pages of evidence, a claim repeated here.
That is false. The IJC stated he received 268 pages, and carefully documented each
of plaintiffs’ proposed exhibits, unlike plaintiffs. Plaintiffs had the opportunity to
submit to the district court in support of their motion to vacate whatever evidence
they deemed relevant, including evidence that had been rejected in the arbitration.
Not only did they not submit the non-existent 900 pages, but they did not submit a
single document in support of their claims of false representations with respect to
the Super Power Project or the IAS donations. Indeed, plaintiffs point to no such
“evidence” in their Brief here, because it does not exist.
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22 of the exhibits proposed by the Garcias and provided them to the arbitrators.”
(Id.)22
On the second day, plaintiffs appeared before the arbitrators. The IJC attended
and briefed everyone on the procedure. (Id. at 4). He repeatedly asked plaintiffs
whether there was any other evidence or arguments they wished to present to the
arbitrators. (Id., ¶16). “The arbitrators asked questions of the Garcias in accordance
with Scientology justice procedures which included asking the Garcias … if they
had anything else they wished to say or present. They did not do so.” (Id.). To
repeat, at their hearing before the arbitrators, the plaintiffs offered no additional
8. The IJC presented the arbitrators with two documents (id.): (1) a
Religious Arbitration Findings Form, which allowed the arbitrators to address and
make findings with respect to the relevant questions to be decided at the arbitration;
(2) a Religious Arbitration Decision Form, which allowed the arbitrators to deliver
22
Defendants argue (Br. at 50) that the IJC excluded “entheta,” which they describe
as a Scientology term that means anything critical of the Church. They are wrong.
The term is defined in Introduction to Scientology Ethics as “in a turbulent state,
agitated or disturbed.” (DE174, Ex. 26 at 419). Mr. Garcia described it as “irrational
or confusing or destructive thought.” (DE276-11). In a judicial context, that
definition is similar to the concepts of incompetence and likely to be misleading and
unduly prejudicial. The IJC did not exclude a single piece of evidence exclusively
on the basis that it was “entheta”; rather the only two items deemed “entheta” were
also found to be irrelevant or hearsay. (DE276-5, Nos. 28, 58). Garcia does not raise
an issue about the exclusion of those two exhibits.
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a verdict with respect to each of the specific claims set forth by plaintiffs in the
arbitration.
at church religious retreats. In doing so, as the district court later noted, the
arbitrators rejected the Churches’ position that plaintiffs should receive nothing.
With respect to the plaintiffs’ other claims, the arbitrators explicitly found that they
were not credible and that plaintiffs had failed to demonstrate a basis for return of
donations. The arbitrators specifically and separately addressed each claim plaintiffs
had asserted, including their claims for breach of contract against FSO and FSSO,
for fraud by CSRT relating to the Super Power Project donations, for fraud by IASA
and USIMT relating to their IAS donations, and for fraud relating to the Orange
County Ideal Org donations. (DE276-7, 8 [SA Tabs 35-36]). Plaintiffs’ statement
here that “the so-called findings of the arbitrators refer only to Plaintiffs’ failure to
fill out the CVB form” (Br. at 53) is demonstrably untrue, as a cursory glance at the
findings or the district court’s opinion rejecting that very argument (DE282 at 7 [AA
The IJC sent the arbitrators’ Findings and Decision to plaintiffs (DE276-9 [SA
Tab 37]) with $18,495.36 from FSO and FSSO. Plaintiffs rejected and returned the
award.
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argued that the IJC had excluded all evidence they had offered and refused to allow
that the Churches refuted, as shown above. Notably, nowhere in their motion did
plaintiffs refer to a single document that was excluded that in their view would have
supported their fraud claims. With respect to their contract claims for refunds of
donations for religious services, the only excluded documents upon which they
relied were Scientology religious policy documents that were incomplete and/or
inaccurate. (DE276-6 [SA Tab 34]). The IJC provided the full and relevant
documents to the arbitrators. Plaintiffs were free to say whatever they wanted about
10. The district court denied the motion. (DE282). The court emphasized
that “judicial review of arbitration awards under the Federal Arbitration Act … is
plaintiffs’ argument that the arbitrators were not impartial because they were
Scientologists in good standing, emphasizing that they had agreed to submit their
award under §10(a)(2) absent a showing of prejudice,” for which it found no support
49
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(quoting Winfrey v. Simmons Foods, Inc. 495 F.3d 549, 551 (8th Cir. 2007)). The
court also rejected plaintiffs’ claim of misconduct as “unpersuasive,” found that the
disallowing irrelevant and hearsay evidence, and properly met with the arbitrators to
instruct them on their duties and procedures. It held that plaintiffs’ “contention that
their attorney was not permitted to attend is disingenuous,” both because it was
contrary to the IJC’s position that he could attend to provide advice and guidance to
plaintiffs and because he did not show up. Finally, the court found that the arbitrators
had considered each of plaintiffs’ claims, including their fraud claims based upon
their donations for the Super Power Project and the IAS “humanitarian initiatives.”
SUMMARY OF ARGUMENT
arbitration.’” AT&T Mobility, LLC v. Concepcion, 563 U.S. 333, 339 (2011). There
50
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Hialeah Auto., 141 So. 3d 1145, 1158 (Fla. 2014). Procedural unconscionability
unconscionability applies only when the terms are so outrageously unfair as to shock
the judicial conscience, such that no man in his sense and not under delusion would
make on the one hand, and as no honest and fair man would accept on the other.
Unconscionability must be measured at the time the agreement is made and not some
later date.
3. The district court properly found the Enrollment Agreements were not
to consider the agreements before signing them and that they had already made their
donations was explicitly waived in open court by their trial counsel. Moreover, the
Agreements are not adhesion contracts because they are religious agreements that
set forth the conditions under which persons may participate in the Scientology
religion. That religion has a constitutional right to accept or reject members, religious
interference. Watson v. Jones, 80 U.S. 679, 729-31 (1871). Plaintiffs were free to
choose any or no religion; they could not unilaterally ignore the doctrine or practices
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adequately set forth arbitration procedures. Florida law does not require an
that the parties have “some idea” of what matters are to be arbitrated and set forth
Agreements meet the standards set forth in Florida cases: they state how the
arbitrators are to be selected and the number of arbitrators; they identify what matters
First, plaintiffs’ argument that the Agreements are unconscionable because they lack
mutuality was not presented to the district court and may not be considered. In any
event, the comprehensive Scientology religious justice system applies equally to the
Church and its followers precisely because its use is a matter of religious doctrine.
Second, the Agreements provide a limited and narrow opportunity for Scientologists
civil law. A person would not have to be senseless and delusional to enter such an
agreement.
Third, as their counsel conceded and the district court found, plaintiffs agreed
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to the terms of the arbitration, including that the arbitrators be Scientologists in good
standing, numerous times over many years. “Arbitration is a matter of contract, and
consequently, the parties to an arbitration can ask for no more impartiality than
inheres in the method they have chosen.” Nat’l Football League Mgmt. Council v.
Nat’l Football League Players Ass’n, 820 F.3d 527, 548 (2d Cir. 2016). Finally, the
doctrine prohibits Scientologists from treating them fairly, contrary to the definitive
statement of Scientology officials and writings that require fairness and impartiality
in Scientology justice proceedings. As the district court wrote: “the First Amendment
6. The district court also properly rejected plaintiffs’ motion to vacate the
Dominion Video Satellite, Inc. v. Echostar Satellite LLC, 430 F.3d 1269, 1275 (10th
Cir. 2005). “The addition of the religious context further narrows the standard to
make [a court’s] intervention nearly impossible.” Lang v. Levi, 16 A.3d 980, 989
(Md. Ct. Spec. App. 2011). This court reviews the evidence under a narrow clearly
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decision. The IJC briefed the arbitrators on the applicable church doctrine and
plaintiffs’ claims. He instructed them to be fair in deciding the claims and to put
reviewed plaintiffs’ evidence, after the IJC excluded evidence deemed irrelevant or
hearsay. He kept a written log of evidence admitted and excluded. Plaintiffs were
declined. They did not even seek to support their claims of false representations
with respect to their donations. The arbitrators considered the evidence and the
claims. They found that plaintiffs were not credible and had not shown a basis for
return of their donations. The arbitrators did award plaintiffs return of $18,495.36
exists for overturning their decision, especially within the extremely limited scope
ARGUMENT
arbitration.’” AT&T Mobility, LLC v. Concepcion, 563 U.S. 333, 339 (2011)(quoting
Moses H. Cone Mem’l Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 24 (1983). It is
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“Congress’ clear intent, in the Arbitration Act, to move the parties to an arbitrable
dispute out of court and into arbitration as quickly and easily as possible.” Id. at 22.
in favor of arbitration.” Solymar Invs., Ltd. v. Banco Santander S.A., 672 F.3d 981,
988 (11th Cir. 2012). In Anders v. Hometown Mortg. Serv., Inc., 346 F.3d 1024
(11th Cir. 2003), this court construed an arbitration agreement covering “any action,
Id. (citing Merritt v. Dillard Paper Co., 120 F.3d 1181, 1186 (11th Cir. 1997)(“the
extends to arbitration by a religious tribunal. See e.g., Ainsworth v. Schoen, 606 So.
2d 1275 (Fla. 3d DCA 1992). Courts have not hesitated to enforce such provisions
Evangelical Lutheran Church, 356 Ill. App. 3d 504, 825 N.E.2d 1206, 1214 (2005);
55
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Dalton, Georgia, 807 F. Supp. 2d 1291, 1294-95 (N.D. Ga. 2011); Easterly v.
exception to freedom of contract. Steinhardt v. Rudolph, 422 So. 2d 884, 890 (Fla.
3d DCA 1982). A court “with great caution” may invoke the doctrine in
So. 2d 278, 284. “Synonyms for the term unconscionable include ‘shocking to the
conscience’ and ‘monstrously harsh.’” Garrett v. Janiewski, 480 So. 2d 1324, 1326
(Fla. 4th DCA 1985). Unconscionability does not permit a court to correct
Steinhardt, 422 So. 2d at 890; see also Belcher v. Kier, 558 So. 2d 1039, 1043 (Fla.
‘unconscionable’”); Beach Resort Hotel Corp. v. Wieder, 79 So. 2d 659, 663 (Fla.
1955) (“[C]ourts may not rewrite a contract . . . to relieve one of the parties from the
substantively unconscionable. Basulto v. Hialeah Auto., 141 So. 3d 1145, 1158 (Fla.
2014). Procedural unconscionability relates to the manner in which the contract was
entered. AMS Staff Leasing, Inc. v. Taylor, 2015 WL 71705, at *4 (Fla. 4th DCA
56
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2015); Brea Sarasota, LLC v. Bickel, 95 So. 3d 1015, 1017 (Fla. 2d DCA 2012);
Powertel, Inc. v. Bexley, 743 So. 2d 570, 574 (Fla. 1st DCA 1999). Substantive
outrageously unfair as to shock the judicial conscience.” Bland v. Health Care &
Ret. Corp., 927 So. 2d 252, 256 (Fla. 2d DCA 2006); Kohl v. Bay Colony Club
Condo., Inc., 398 So. 2d 865, 868 (Fla. 4th DCA 1981). Substantive
unconscionability is defined as an agreement “‘no man in his sense and not under
delusion would make on the one hand, and as no honest and fair man would accept on
the other.’” Belcher, 558 So. 2d at 1044 (quoting Hume v. U.S., 132 U.S. 406 (1889)).
Unconscionability must be measured at the time the contract is made and not
some later date. Steinhardt, 422 So. 2d at 889. “A party to a contract is not ‘permitted
to avoid the consequences of a contract freely entered into simply because he or she
elected not to read and understand its terms before executing it, or because, in
retrospect, the bargain turns out to be disadvantageous.’” Estate of Perez v. Life Care
Ctrs. of Am., Inc., 23 So. 3d 741 (Fla. 5th DCA 2009) (quoting Weston, 857 So. 2d
at 288). The party seeking to avoid the arbitration provision has the burden to
system founded on the religious principles of Scientology. Plaintiffs knew about and
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court has at most an extremely limited ability to interfere with that religious arbitration
party lacked a meaningful choice when entering into the contract,” quoting Basulto,
141 So. 3d at 1157, n.3. (Br. at 21). They argue that plaintiffs had no choice in
application would prevent receipt of the services which the member had already
Plaintiffs’ trial counsel below explicitly waived this very point in open court.
He conceded that plaintiffs could not claim procedural unconscionability on the basis
that they did not know about the arbitration provision before being asked to agree to
it, or that they had already donated for a religious service before signing an Enrollment
Agreement for that service. Plaintiffs had executed over three dozen such agreements
over many years and knew that they could not participate in Scientology services
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acknowledged:
Let me say something else about this business about they paid
their money and then they had an agreement stuck in their nose
and had to sign it. This is something that went on with them for
28 years,
the court responded, “Well, Mr. Babbitt just acknowledged that he’s not in a position
to contend that they were rushed or forced to sign something because of that very
Plaintiffs’ adhesion argument also must be rejected under the First Amendment.
Plaintiffs did not enter into a commercial employment relationship with the Churches
practices and agreed to the requirements necessary to do so. The Church is neither a
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Watson v. Jones, 80 U.S. 679, 729-31 (1871). See Church of Scientology v. City of
Clearwater, 2 F.3d 1514, 1544 (11th Cir. 1993)(striking down a city ordinance
requiring a church to disclose to its members all its expenditures from their
donations: “The City may not intervene on behalf of such dissidents. If they remain
dissatisfied with the church’s voluntarily assumed disclosure policy then they may
attempt to reform that policy from within, they may acquiesce in the policy despite
religions, and plaintiffs were free to choose to participate in or donate to any or none
participating in the Church, i.e., that they agree to its arbitration of disputes policy,
they had the choice to try to reform it, to acquiesce in it, or to leave. They acquiesced
for over twenty years, and then they left. What they may not do now is ask this court
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to intervene, after the fact, on the basis that they purportedly lacked bargaining
power and had no choice but to maintain their participation in the Church in
accordance with church law and governance. The concept of an adhesion contract
The district court also was correct in rejecting plaintiffs’ argument that the
Enrollment Agreements did not set forth arbitration procedures. Florida law does not
requires that an arbitration provision be “definite enough that the parties at least have
some idea as to what particular matters are to be submitted to arbitration and set forth
Physician Servs., LLC, 149 So. 3d 163, 165-66 (Fla. 4th DCA 2014)(emphasis in
original)(quoting Malone & Hyde, Inc. v. RTC Transp., Inc., 515 So. 2d 365, 366
In Intracoastal Ventures Corp. v. Safeco Ins. Co. of Am., 540 So. 2d 162 (Fla.
4th DCA 1989)(reversed on other grounds, 833 So. 2d 762), the court found the
procedures sufficiently identified where the agreement provided for selecting two
independent appraisers, the two appraisers were then to select an impartial umpire,
and if an umpire could not be agreed upon within fifteen days, either party could
petition the court to appoint one; if the appraisers could not agree upon an amount
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within a reasonable time, they were to submit their differences to the umpire. (Id. at
163).
In Malone & Hyde, an arbitration provision was invalidated because it did not
identify the number of arbitrators, how the arbitrators were to be selected, or the
issues to be decided. (Id. at 366). The arbitration provision in this case does identify
the matters to be submitted to arbitration and does set forth procedures by which
The district court carefully applied these principles in holding that the
(DE189 at 15).
In addition, the district court pointed out Mr. Garcia had engaged in a
thorough study of Scientology religious dispute resolution and justice policies and
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testified:
I was familiar with the ethics and justice procedures. And I knew
there was a system whereby Scientologists could settle disputes,
have hearings. … I was aware of the committee of evidence, I
knew how that worked. … We study … the ethics specialty course,
and become well versed on how these things are supposed to work.
(DE104-15 at 23-24, 46-48 [SA Tab 5]). The written policy establishing the
Committee of Evidence stated that it “is for use in all matters of justice in
Scientology,” including “refunds.” (DE127-2 at 1, 2 [SA Tab 22]). While the district
court held that the Committee of Evidence was not created specifically for use in
Scientology arbitration procedures, having been written years before the creation of
the arbitration process and bearing several characteristics that were different than
that many of the procedures of the Committee of Evidence were well known and
carrying out his religious duty to insure that the arbitration proceed, as stated in the
arbitration procedures. 23
23
The district court thus rejected a later attempt by plaintiffs to prohibit the IJC from
utilizing certain of the procedures used in a Committee of Evidence, holding that “it
is within the authority of the Church to determine the procedures for ecclesiastical
arbitration.” (DE265 at 1, n.1 [SA Tab 29]).
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(DE189 at 16). The district court’s finding was not “clearly erroneous.” Multi–Fin.
clause in a “payday” loan scheme requiring arbitration by the Cheyenne River Sioux
Tribal Nation. See Inetianbor v. CashCall, Inc., 768 F.3d 1346 (11th Cir. 2014);
Jackson v. Payday Fin., LLC, 764 F.3d 765 (7th Cir. 2014). Those cases are
inapposite for the simple reason that the Tribe had no arbitration forum and refused
to create one, stating it “has nothing to do with the arbitration process.” Inetianbor,
768 F.3d at 1349. Here, the Churches have established an arbitration forum and
rules by which it may be invoked, for what claims, and for the choosing of
principles and consistent with the ecclesiastical nature of the proceedings. Plaintiffs’
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the burden of showing both procedural and substantive unconscionability. They also
Plaintiffs argue that the agreement to submit all disputes to the Scientology
justice system lacks mutuality. This is the first time that plaintiffs have raised this
issue. They did not argue it in their opposition to the motion to compel arbitration,
in their “Bench Memorandum” submitted prior to the evidentiary hearing before the
district court, in their motion for reconsideration of the district court’s order
requiring arbitration, or in their oral arguments to the district court. Plaintiffs’ failure
to raise the issue below is a classic example of waiver and may not be considered on
this appeal. Ledford v. Peeples, 657 F.3d 1222, 1258 (11th Cir. 2011)(“It requires
no citation of authority to say that, except when we invoke the ‘plain error doctrine,’
which rarely applies in civil cases, we do not consider arguments raised for the first
to preserve an argument; the argument itself must have been made below”); Evans
v. Georgia Reg’l Hosp., 850 F.3d 1248, 1257 (11th Cir. 2017)(same).
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Moreover, plaintiffs are wrong. As described ante at 34-38, the Church has
established a robust and comprehensive justice system precisely for use by all
churches and parishioners. Hubbard wrote “we must use Scientology … justice in
all our affairs.” He asserted his belief that in civil courts “truth has little bearing on
that “we have a superior law code and legal system which gives real justice to
people.” To that end, Hubbard created the Committee of Evidence procedure, which
states on its title page, “This system is for use in all matters of justice in
religious context would be improper for similar reasons as discussed above with
context such as those at issue in the cases plaintiffs cite24; it is related to the
requirement that parties may bargain over contractual provisions. But where an
24
In those cases, lack of mutuality was but one of several indicia of substantive
unconscionability.
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F.3d at 1544.
Plaintiffs asserted “contract” claims based upon donations to FSO and FSSO
for religious services. The IRS recognizes such donations are irrevocable tax-
deductible gifts; only irrevocable gifts are deductible under 26 U.S.C. §170. See
Walker v. Comm’r of Internal Revenue, 91 F.2d 297 (5th Cir. 1937). See also 38A
C.J.S. Gifts §64 (“A completed inter vivos gift cannot be revoked by the donor once
the gift is delivered and accepted by the donee”); Ritter v. Shamas, 452 So. 2d 1057,
Thus, any claim that plaintiffs are entitled to return of donations does not arise
under civil law, but only if there exists a Scientology policy or an agreement
permitting it. Significantly, plaintiffs base their “contract” claims precisely upon their
interpretation of Scientology religious policy. See, e.g., DE114, ¶44 (resting cause of
(alleging FSSO induced donations “with the express understanding” that they would
specify that such donations are not refundable, except under “specific and
Claims Verification Board (CVB). Those documents create the very limited
possibility of a refund, set forth the strict limitations of that possibility, and establish
Without the Agreements and the Scientology doctrine upon which they are
based, plaintiffs would have no basis to request return of donations. A civil court may
not determine whether plaintiffs’ interpretation of church doctrine is correct and the
Presbyterian Church, 393 U.S. 440, 450 (1969)(First Amendment “forbids civil
courts from [making their own] interpretation of particular church doctrines and the
importance of those doctrines to the religion”); In re Holy Spirit Ass’n for the
Unification of World Christianity v. Tax Comm’n of the City of New York, 55 N.Y.2d
512, 527-28 (1978)(“It is for religious bodies themselves, rather than the courts or
religion is”). See also Hosanna Tabor, 565 U.S. at 197 (Thomas, J.,
“disadvantag[e] those religious groups whose beliefs, practices, and membership are
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Agreements and the arbitration provisions provide plaintiffs with a potential, albeit
limited, remedy for return of donations where no remedy exists under civil law, a court
could not conclude that “no man in his senses and not under delusion” would make
The same is true for plaintiffs’ claims for return of Super Power Project and
IAS donations. Such donations were for the general purposes of CSRT and the IAS
and were not refundable. Plaintiffs alleged, however, that their donations were not
The mere fact that plaintiffs label these as claims for civil fraud, however,
does not mean that they do not require examination of church doctrine, governance
and procedures beyond review of civil courts. Such claims implicate matters of
lacked a viable civil court remedy for their allegations of fraudulent misuse of funds
obtained a remedy where none otherwise existed. Here, too, a court could not
conclude that “no man in his senses and not under delusion” would make such an
Mr. Garcia conceded that when he entered into the Enrollment Agreements, he
Q. And you weren’t under the influence of drugs or alcohol when you signed,
correct?
A. No. …
Q. And any kind of mind-altering drugs, correct?
A. Yes
Q. And you weren’t mentally impaired when you signed these agreements?
A. No.
Q. And you weren’t delusional when you signed these agreements?
A. No…
Q. And at the time you signed these agreements, wasn’t it your personal
belief that at that time the internal Scientology system of justice was fair?
A. Yes.
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(DE195, Hr’g Tr. 18-19 [SA Tab 25]). Garcia specifically “accepted the idea that
between [him] and the church.” (Id. at 19-20). He was “accepting of this internal
justice system … had good feelings about it … [and] never suggested to anyone in
the church that the enrollment agreements were objectionable and should be
Only now after having left the religion do plaintiffs object to faith-based
Steinhardt, 422 So. 2d at 889. When a person agrees to arbitration before a certain
class of arbitrators, he may not later ask a court to find his agreement was delusional
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is the regime bargained for and agreed upon by the parties, which we
can only presume they determined was mutually satisfactory.
Nat’l Football League Mgmt. Council v. Nat’l Football League Players Ass’n, 820
F.3d 527, 532 (2d Cir. 2016), and at 548 (“arbitration is a matter of contract, and
consequently, the parties to an arbitration can ask for no more impartiality than
inheres in the method they have chosen”). See BDO Seidman, LLP v. Bee, 970 So.
2d 869, 873, 875 (Fla. 4th DCA 2007)(upholding arbitration clause in partnership
1294-95, and Easterly v. Heritage Christian Sch., 2001 WL 2750099 (S.D. Ind. 2009),
courts rejected claims that arbitrators would be inherently biased because of their
807 F. Supp. 2d at 1301. (“‘The Supreme Court has repeatedly counseled that [under]
the FAA . . . courts should not presume, absent concrete proof to the contrary, that
*3)). See also Jenkins, 825 N.E.2d at 1214 (rejecting partiality argument based on
fact that “the dispute resolution procedure calls for arbitrators who are either members
or employees of the [defendant] Synod,” because “Plaintiff has not pointed to any
specific prejudice he would suffer under the bylaws, but only a generalized fear of
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they could not receive a fair hearing because as declared Suppressive Persons they are
considered enemies of the religion. The IJC, however, testified that an arbitration
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arbitrator not only is contrary to religious policy as described by the IJC but is
fundamentally at odds with the First Amendment. Plaintiffs ask this court to construe
church doctrine in a manner contrary to the Church’s interpretation. But the First
particular church doctrines and the importance of those doctrines to the religion.”
Presbyterian Church v. Mary Elizabeth Blue Hull Memorial Presbyterian Church, 393
Video Satellite, Inc. v. Echostar Satellite LLC, 430 F.3d 1269, 1275 (10th Cir. 2005).
25
It is well recognized that passages from the Old and New Testament and Koran
often conflict and can be subjected to numerous and diverse interpretations.
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and quotations omitted). See also id. at 572-73 (“All we say is that convincing a
court of an arbitrator’s error—even his grave error—is not enough. … The potential
Thus, for example, a court may not vacate an arbitration decision even if the
arbitrators did not explain their reasons. O.R. Sec., Inc. v. Prof’l Planning Assocs.,
Inc., 857 F.2d 742, 747 (11th Cir. 1988). Likewise, a court may not engage in a
review of the factual record to determine if the arbitration panel ruling was “contrary
to strong evidence.” Wallace v. Buttar, 378 F.3d 182, 193 (2d Cir. 2004)(“If a ground
for the arbitrator’s decision can be inferred from the facts of the case, the award
should be confirmed. Only this approach to the evidentiary record is consistent with
the great deference which must be paid to arbitral panels by federal courts”). Nor,
as noted above, will a court look beyond the choices made by the parties to determine
whether the arbitrators were partial. Winfrey v. Simmons Food, Inc., 495 F.3d at
551. And the standard for finding partiality of an arbitrator based on his conduct is
extremely high. See McCabe, Hannity & Remington, Co. v. ILWU, 557 F. Supp. 2d
1171, 1182 (D. Haw. 2008)(Arbitrator expressed sympathy with one party’s
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situation (stating he should have received a “hero’s welcome” and the parties were
sympathy and anger are an insufficient basis for vacating his award”); Spector v.
Torenberg, 852 F. Supp. 201 (S.D.N.Y. 1994)(“An arbitrator is not precluded from
developing views regarding the merits of a dispute early in the proceedings, and an
award will not be vacated because he expresses those views. In addition, what
is virtually eliminated when the issue concerns religious arbitration. Lang v. Levi, 16
A.3d 980, 989 (Md. App. 2011)(“The addition of the religious context further
(N.Y. Sup. Ct. 2008)(First Amendment precludes court from “deciding whether
religious law has been violated”); Lang v. Levi, 16 A.3d at 985 (court “cannot delve
into whether under Jewish law there is legal support” for arbitrator’s decision);
Lieberman v. Lieberman, 149 Misc. 2d 983, 987 (N.Y. Kings Cty. 1991)(rejecting
“Sirov,” a religious decree “that subjects the recipient to shame, scorn, ridicule, and
Particular Primitive Baptist Church, 335 Md. 564, 578 (1994)(“This dispute cannot
be resolved ... without inquiries into the religious doctrine and custom of the
Primitive Baptist faith. The constitution will not permit such inquiries, and we will
therefore not review the award of the arbitrators in the instant case”).
Whether viewed through the lens of the limited review of secular arbitrations
vacatur of the determination of the arbitration panel. The district court thoroughly
reviewed the showing before it, rejected the arguments of plaintiffs, and upheld the
arbitrators’ decision.
77
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(Br. at 17). False. The arbitrators reviewed written submissions critical of the
Timeline;” a letter from Lynne Hoverson critical of CSRT; a Policy Letter from 1977
upon which Garcia wrote critical comments; letters from Church officials denying
Luis Garcia and Church officials containing extremely critical and uncomplimentary
comments from Garcia; letters from Luis Garcia to FSSO critical of its refusal to
refund his donations and threatening legal action; and another timeline critical of
CSRT. (DE276-5, Nos. 1, 8, 31, 44-56, 59-61 [SA Tab 27]). The plaintiffs made no
effort to offer oral evidence or statements to the arbitrators, despite repeatedly being
invited to do so.
arbitration panel.” Brief at 44. False. Plaintiffs offered 54 documents into evidence;
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witnesses, despite being asked if they wished to submit further evidence. As noted,
plaintiffs did not offer oral evidence or statements of their own to the arbitrators,
despite repeatedly being asked if they wished to do so. (DE276-1, ¶¶12, 16).
3. Mr. Garcia was not permitted to bring an “assistant” to help him with
reading problems. Brief at 12. Misleading. The IJC made clear that the Church
would provide someone to help him read or present materials, as Garcia conceded.
(DE276-11 at 1: “In all fairness, Mr. Ellis offered to provide a person to read for
4. The IJC and arbitrators refused to consider the plaintiffs’ fraud claims
and the issues raised in the lawsuit. (Br. at 44-45, 50). False. Plaintiffs’ fraud claims
and IASA to induce donations for the Super Power Project or IAS “initiatives.”
Plaintiffs did not offer evidence, documentary, oral, or otherwise, that any person or
entity made a representation to induce such donations, let alone how or why such
Plaintiffs have not attempted to show here or in the district court that such evidence
was offered. The “fraud” claims plaintiffs tried to argue to the arbitrators were that
the entire Church and religion is a fraud; it was those efforts that were disallowed by
the IJC and the arbitrators as irrelevant and hearsay. As noted above, the arbitrators’
findings specifically and separately addressed and rejected each of plaintiffs’ fraud
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and other claims, finding that plaintiffs’ allegations were not credible, hardly
surprising since plaintiffs did not try to offer proof of those claims. As the district
court held:
(DE282 at 7).
5. The IJC had “unfettered ex parte contact with the arbitration panel.”
Brief at 44. False and misleading. The IJC met separately with the arbitrators and
instructed the arbitrators as to the procedures and the nature of the dispute. He
presented to the arbitrators the written claims of plaintiffs and the written response
of the Church. He provided the arbitrators with the governing religious policies, and
with those of plaintiffs’ documents that he found admissible. He did not present
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evidence of his own; he only forwarded to them evidence presented by the parties.
Moreover, the IJC did not “train” the arbitrators. He spent no more than an hour
with them over two days, and instructed them as to their role, the dispute, and the
6. The arbitrators did not refuse to allow plaintiffs’ lawyer to attend the
arbitration. The IJC consistently stated prior to the arbitration that plaintiffs could
bring a lawyer to advise them, but that he could not directly participate in the
proceedings themselves. As the district court stated on the eve of arbitration, “As
for [plaintiffs’] concern that counsel will not be permitted to attend, the IJC testified
that their attorney may be present.” (DE265 at 4, n.5 [SA Tab 29]). The Churches
and the IJC fully anticipated that plaintiffs’ lawyer would attend. He never showed
up, despite the opportunity to do so to consult with and provide advice to his client.
The district court held that plaintiffs’ argument was “disingenuous.” At the least.
7. The CVB told the arbitration panel how to rule. (Br. at 47). False. The
CVB letter was presented to the arbitrators as the Churches’ response to the
plaintiffs’ claims. It argued that plaintiffs did not qualify for return of their
donations. The arbitrators were instructed to decide those issues themselves and
were free to come to whatever decision they thought appropriate. (DE276-1 at 2-4).
The arbitrators awarded plaintiffs over $18,000 despite the CVB’s argument that
they be awarded nothing. As the district court found, “The arbitration award of more
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(DE282 at 6, n.4).
the CVB setting forth the Churches’ position on plaintiffs’ claims. False. Plaintiffs
could have responded when repeatedly asked by the arbitrators if they wished to be
heard further or to present any further materials. They declined the opportunity to
do so, despite the fact that up to two weeks had been set aside for the arbitration and
plaintiffs easily could have requested time to collect and present evidence they
decision of the arbitrators within the extremely narrow scope of judicial inquiry
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Alternatively, the orders of the district court compelling arbitration and denying
Respectfully submitted,
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CERTIFICATE OF COMPLIANCE
complies with this Court’s Order entered April 29, 2019 in that the combined principal
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 2nd day of July, 2019, a copy of the
foregoing has been electronically filed with this Court via CM/ECF, and has been
furnished via email to:
Theodore Babbitt, Esq. Robert E. Johnson, Esq.
BABBITT & JOHNSON, P.A. GRAYROBINSON, P.A.
1641 Worthington Road, Suite 100 401 E. Jackson Street, Suite 2700
West Palm Beach, FL 33409 Tampa, FL 33601
tedbabbitt@babbitt-johnson.com rjohnson@gray-robinson.com
valerie.taylor@gray-robinson.com
85