Answers in Genesis of Kentucky, Inc. v. Creation Ministries International, Ltd.

556 F.3d 459, 2009 U.S. App. LEXIS 2743, 2009 WL 348838
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 13, 2009
Docket08-6014, 08-6032
StatusPublished
Cited by318 cases

This text of 556 F.3d 459 (Answers in Genesis of Kentucky, Inc. v. Creation Ministries International, Ltd.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Answers in Genesis of Kentucky, Inc. v. Creation Ministries International, Ltd., 556 F.3d 459, 2009 U.S. App. LEXIS 2743, 2009 WL 348838 (6th Cir. 2009).

Opinion

OPINION

JULIA SMITH GIBBONS, Circuit Judge.

This appeal presents multiple issues of first impression for our circuit. Defendant-appellant Creation Ministries International, Ltd., (“CMI”) appeals the district court’s order compelling arbitration of its disputes with fellow ministry Answers in Genesis of Kentucky, Inc. (“AiG”). Specifically, CMI asserts that the district court erred in declining to dismiss AiG’s suit on the basis of the contracts’ forum selection clause, declining to abstain in favor of CMI’s prior-filed Australian litigation, and compelling arbitration on all of AiG’s claims. AiG cross-appeals the district court’s order declining to issue a foreign antisuit injunction to block CMI from further pursuing its Australian litigation. We hold that the district court properly compelled the parties to arbitration and did not abuse its discretion in declining to issue an antisuit injunction based upon the facts as they now stand. We therefore affirm the judgment of the district court in its entirety.

I.

This case arises from a motion to compel arbitration filed under the Federal Arbitration Act (“FAA”), 9 U.S.C. § 206, by AiG, a Kentucky non-profit corporation headquartered in Petersburg, Kentucky, against CMI, an Australian non-profit corporation organized under the laws of the State of Queensland, Australia. In 1980, a group of Australian religious adherents joined together to form the Creation Science Foundation (“Foundation”), CMI’s predecessor organization. According to one of the original members, the Foundation’s purpose “was to promote creationism and apologetics” throughout Australia. Among the founders was Ken Ham, an Australian minister and “creation science” advocate. Since the 1970s, another Australian creation science supporter, Carl Wieland, began publishing a magazine known as Ex Nihilo to publicize advances in creation science. The magazine would later become known as Creation Magazine. Wieland transferred production responsibility to the Foundation for his magazine sometime “in the late 1970’s or early 1980’s.” Wieland joined the Foundation and, along with Ham, became one of the Foundation’s two main leaders.

In 1987, Ham moved from his native Australia to the United States. Seven years later, Ham founded an American counterpart to the Foundation headquartered in Kentucky, which would become known as AiG. The two organizations were separate entities but worked closely together until the events that gave rise to the current litigation occurred. As AiG grew in membership and financial resources, it began to eclipse its Australian counterpart, which had by now come to be led largely by Wieland. AiG established and funded a website, www.answersing enesis.org, that both AiG and the Foundation used to spread the discoveries of creation science. AiG also purchased signifi *463 cant numbers of each issue of Creation Magazine for distribution to American subscribers. AiG’s growth caused significant tension to develop between Ham and Wieland, as each vied for control of what was becoming an increasingly international movement to teach creationism.

The Foundation 1 had joined with AiG in founding Answers in Genesis International (“AGI”) to foster relationships among creation science organizations in other Commonwealth countries, such as Canada, South Africa, New Zealand, and the United Kingdom. Ownership of AGI was split between the Foundation and AG. AG held a fifty percent share in AGI. Aound March 2005, Wieland proposed a new model for control of AGI. Wieland referred to this new proposal as a much needed “democratic reform” in the structure of the international ministry. The “reform” would give each branch of the international ministry one vote at AGI board meetings. From AG’s perspective, the sole purpose of this reform was to dilute the American organization’s influence over the creation science movement and concomitantly place Wieland in sole control of AGI. AG believed that the small organizations in countries such as South Africa and New Zealand were under Wieland’s control to the extent that their votes would merely parrot his. Unsurprisingly, AG rejected Wieland’s democratic reform, and relations between the American and Australian ministries deteriorated rapidly.

Some of the Foundation’s board members sought to heal the developing schism. They tried to accomplish this by moving toward a more business-like relationship with AG. On October 11-13, 2005, the boards of directors of both AG and the Foundation met in Petersburg, Kentucky, in an attempt to settle their differences over the control structure of AGI as well as the disputes that arose over Creation Magazine’s content and distribution and the content found on the two ministries’ joint website. The meetings produced a series of signed agreements that form the basis of the current litigation on two continents.

On October 13, 2005, the members of both organizations’ boards of directors executed a Memorandum of Agreement (“MOA”). The MOA provided for several transfers of property and contractual rights in an attempt to divide each organization’s responsibilities within the larger creation science movement. Among other provisions, the MOA required the Foundation to transfer to AG ownership of certain international copyrights and the competing domain name www.answersing enesis.com. MOA at 1. The Foundation would also begin to pay a fee to AG for AG’s maintaining their joint website www. answersingenesis.org. MOA at 2. In return, AG would transfer to the Foundation AG’s fifty percent voting share in AGI, giving the Foundation complete control over the international organization. MOA at 1. AG also agreed to pay a fee to the Foundation for each future article the Foundation provided for the joint website. The Foundation concomitantly agreed to grant an express license to AG for the use of all articles that had previously appeared on either the website or in AG’s publications. MOA at 2. Most importantly, the MOA closed with an arbitration clause that provided “in the event of a disagreement” the parties would “submit the matter to Christian arbitration.” MOA at 2-3.

*464 That same day, the parties also executed a Deed of Copyright License (“DOCL”). The DOCL granted AiG a license to continue to use the articles the Foundation had provided for its website and publications. DOCL at 5-6. Thus, the DOCL fulfilled the Foundation’s obligations under the MOA to validate AiG’s use of the Foundation’s intellectual property. The DOCL closed by noting that “the law applicable to the State of Victoria, Australia” applied and “[t]he parties submit to the non-exclusive jurisdiction of its courts and courts of appeal.” DOCL at 7-8.

Although the two boards had ratified the agreements, Wieland fiercely objected to their content. Deepening internal tension led the membership of the Foundation’s board to resign. Wieland replaced the board’s membership with appointees of his own liking. This new board joined Wie-land in seeking to reject the MOA and DOCL. The board also voted to change the name of the Foundation to its current name of Creation Ministries International (“CMI”) effective January 19, 2006.

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556 F.3d 459, 2009 U.S. App. LEXIS 2743, 2009 WL 348838, Counsel Stack Legal Research, https://law.counselstack.com/opinion/answers-in-genesis-of-kentucky-inc-v-creation-ministries-international-ca6-2009.