Baxter v. Miscavige

District Court, M.D. Florida·Decided March 31, 2023·No. 8:22-cv-00986·Unknown

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION

GAWAIN BAXTER, LAURA BAXTER, and VALESKA PARIS,

Plaintiffs,

v. Case No: 8:22-cv-986-TPB-JSS

DAVID MISCAVIGE, CHURCH OF SCIENTOLOGY INTERNATIONAL, INC., RELIGIOUS TECHNOLOGY CENTER, INC., IAS ADMINISTRATIONS, INC., CHURCH OF SCIENTOLOGY FLAG SERVICE ORGANIZATION, INC., and CHURCH OF SCIENTOLOGY FLAG SHIP SERVICE ORGANIZATION, INC.,

Defendants. ___________________________________/

ORDER ON MOTIONS TO COMPEL ARBITRATION AND TO DISMISS

This matter is before the Court on several motions: “Defendant Church of Scientology Flag Ship Service Organization, Inc.’s Motion to Compel Arbitration, or in the Alternative, to Dismiss the Complaint” (Doc. 84);

“Defendant Church of Scientology Flag Service Organization, Inc’s Motion to Compel Arbitration; or in the Alterative, to Dismiss Pursuant to Rule 12(b)(6)” (Doc. 85);

“Defendant IAS Administration, Inc.’s Motion to Dismiss Plaintiffs’ Complaint for Lack of Personal Jurisdiction, to Compel Arbitration, or Dismiss for Failure to State a Claim” (Doc. 87);

“Defendant Church of Scientology International, Inc.’s Motion to Dismiss or Compel Arbitration” (Doc. 88); and “Defendant Religious Technology Center, Inc.’s Motion to Dismiss Plaintiffs’ Complaint for Lack of Personal Jurisdiction or, Alternatively, to Compel Arbitration or, Alternatively, Dismiss for Failure to State a Claim” (Doc. 89).

On September 13, 2022, Plaintiffs Gawain Baxter, Laura Baxter, and Valeska Paris filed responses in opposition to the motions. (Docs. 107; 108; 109; 110; 111; 113). The Court held a hearing to address the motions on November 17, 2022. (Docs. 148; 149). At the direction of the Court (Doc. 168), the parties provided additional briefing on the issue of duress (Docs. 174; 175; 180; 181). After reviewing the motions, responses, supplemental briefing, court file, and the record, the Court finds as follows: Background 1 Plaintiffs are former members of the Church of Scientology. They were introduced to Scientology as children by their parents, and they remained active in Scientology as adults. As practicing Scientologists, they served for over a decade as members of the Sea Organization (“Sea Org”), which is described as a religious order within the larger Scientology religion. Plaintiffs bring this action pursuant to the Trafficking Victims Protection Reauthorization Act (“TVPRA”), 18 U.S.C. §§ 1581- 1597, alleging that Defendants coerced persons, including Plaintiffs, to join Sea Org and provide unpaid labor and services on a 10,328-ton cruise ship vessel known as the Freewinds, where Defendants knowingly obtained valuable benefits including

1 The Court accepts as true the facts alleged in the amended complaint (Doc. 79) for purposes of ruling on the pending motions. See Erickson v. Pardus, 551 U.S. 89, 94 (2007) (“[W]hen ruling on a defendant’s motion to dismiss, a judge must accept as true all of the factual allegations contained in the complaint.”). By accepting the facts as true for purposes of this motion, as is required by law, the Court has not made factual findings in favor of, or against any party. financial enrichment. Plaintiffs allege that Freewinds frequently sailed to nations where anti-trafficking measures were weak to avoid legal repercussions, and it has never docked at any port in the United States or even entered the territorial waters of the United States. Plaintiffs allege they were forced by their parents to join the Church of

Scientology as children, where they were “indoctrinated, manipulated, and pressured into coercive circumstances from a young age.” (Doc. 79 at ¶ 3). They now contend that Scientology was “a world filled with abuse, violence, intimidation, and fear.” (Id. at ¶ 1). For a time, Plaintiffs were assigned to work on Freewinds under highly dangerous and abusive conditions, often working between 16-24 hours a day. In the amended complaint, Plaintiffs detail numerous incidents of punishment, humiliation,

interrogation, and imprisonment that occurred while they were members of Sea Org, including various acts of mental, physical, and emotional abuse. As members of Scientology, Plaintiffs signed pledges of “eternal service” to the religion and its goals.2 In enrollment agreements signed in 2003 and 2004, Plaintiffs agreed to resolve disputes with the Church through binding religious arbitration. Plaintiffs were between the ages of roughly 19 and 25 – relatively young adults – when these arbitration agreements were signed. Gawain Baxter was born April 9, 1982.

(Doc. 149 at 14). Laura Baxter was born on October 25, 1984. (Id.). And Valeska

2 In an affidavit supporting the motions to compel arbitration, Sarah Heller, a staff member of Church of Scientology Flag Service Organization, explains that the Sea Org is the religious order of Scientology and is composed of the most dedicated Scientologists – individuals who have dedicated themselves to the Sea Org “for a billion years,” reflecting “both their dedication to their religion and their awareness of themselves as immortal spiritual beings who have lived countless lives and who will live again and again.” (Doc. 84-1 at ¶ 15). Paris was born in 1978. (Id.). Plaintiffs later left Freewinds, and they executed agreements to arbitrate then as well – Paris in 2007, and the Baxters in 2012. Paris, when she was roughly 31 years of age, signed another agreement and release in 2009 that included an arbitration provision. Similarly, the Baxters signed additional agreements, which included arbitration provisions, in December 2015 when they were

roughly 33 and 31 years of age respectively. Legal Standard Defendants have asserted several arguments in support of dismissal, including lack of personal jurisdiction. All Defendants have moved to dismiss or to compel arbitration of Plaintiffs’ claims, relying on the various agreements signed by Plaintiffs that include arbitration provisions. Ordinarily, the Court would consider the personal

jurisdiction arguments first. However, when multiple arguments have been presented in support of dismissal, a district court may “bypass questions of subject-matter and personal jurisdiction, when considerations of convenience, fairness, and judicial economy so warrant […].” Graddy v. Carnegie Acad., LLC, No. 1:21-cv-00639-SDG, 2022 WL 903193, at *3 (N.D. Ga. Mar. 28, 2022) (quoting Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574, 585 (1999)). “Arbitration provisions are a species of forum selection clauses.” VI MedRx, LLC v. Hurley Consulting Assocs., Ltd., No. 3:11-cv-1034-J-

37TEM, 2012 WL 10494, at *2 (M.D. Fla. Jan. 3, 2012) (internal quotation omitted). As such, the Court considers the motions to compel arbitration at the outset. See id. at *3 n.8. The Federal Arbitration Act (“FAA”), 9 U.S.C. §§ 1 et seq., “embodies a liberal federal policy favoring arbitration agreements.” Caley v. Gulfstream Aerospace Corp., 428 F.3d 1359, 1367 (11th Cir. 2005). In fact, the Eleventh Circuit Court of Appeals has “recognized that the FAA creates a presumption of arbitrability such that any doubts concerning the scope of arbitrable issues should be resolved in favor of arbitration.” Bazemore v. Jefferson Cap. Sys., LLC, 827 F.3d 1325, 1329 (11th Cir. 2016) (internal quotations omitted).

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