General Conference of the Evangelical Methodist Church v. Faith Evangelical Methodist Church

809 N.W.2d 117, 2011 Iowa App. LEXIS 1369, 2011 WL 5867985
CourtCourt of Appeals of Iowa
DecidedNovember 23, 2011
DocketNo. 11-0327
StatusPublished
Cited by5 cases

This text of 809 N.W.2d 117 (General Conference of the Evangelical Methodist Church v. Faith Evangelical Methodist Church) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Conference of the Evangelical Methodist Church v. Faith Evangelical Methodist Church, 809 N.W.2d 117, 2011 Iowa App. LEXIS 1369, 2011 WL 5867985 (iowactapp 2011).

Opinion

VOGEL, J.

The General Conference of the Evangelical Methodist Church appeals a district court ruling ordering the scheduling of an annual conference. - Faith Evangelical Methodist Church eross-appeals the ruling that compelled arbitration. We agree with the district court that the agreement between the parties required non-doctrinal issues be resolved by a form of arbitration. However, the district court considered more than the narrow issue before it, and erred in ordering the convening of an annual conference. We therefore affirm in part, and reverse in part.

I. Background Facts and Proceedings

On May 12, 2002, Faith Evangelical Methodist Church (Faith) in Oskaloosa, Towa, requested formal affiliation with the Evangelical Methodist Church, headquartered in Indianapolis, Indiana,. The General Conference of the Evangelical Methodist Church (EMC) is the governing body of the denomination. When Faith attempted to sever that affiliation in 2010, EMC filed with the district court an "Application by Motion for Order to Compel Arbitration."

David Brown has served as pastor at Faith since January 2005. Some resistance to EMC policies was shared by Pastor Brown with the Faith congregation. On May 2, 2010, Faith sent a letter to EMC, informing EMC that it was "the unanimous decision of our boards of Trustees and Stewards, as well as our congregation to withdraw from the Evangelical Methodist Church." On May 19, Superintendent J. Vernon Conner of the EMC replied to Pastor Brown and the officers of Faith, noting that by its actions, Faith had violated the EMC Book of Discipline (the [120]*120Discipline) "in quite a few areas." EMC concluded that it would not honor Faith's "illegal termination," and Superintendent Conner stated he would be in Oskaloosa on Sunday May 23 for worship, and expected to meet with the congregation's leaders that afternoon.

The meeting occurred as scheduled but the dispute on the congregation's withdrawal remained unresolved. On May 26, 2010, EMC sent Pastor Brown a letter removing him as a "temporary supply pastor" at Faith, and asking him to "tender [his] resignation no later than June 13, 2010."1 Two days later, on May 28, Bob Waal, Chairman of Faith's Board of Stewards, sent Superintendent Conner a letter again stating Faith's intent to withdraw from the EMC. Waal wrote that because Faith had not been notified of the date of its annual church conference, Faith was "submitting this letter at this time in order to comply with the Discipline of the Evangelical Methodist Church."

On July 13, 2010, EMC wrote a letter to Faith, stating that Faith's "purported withdrawal" was invalid because no valid withdrawal vote was taken and there was no basis to withdraw at the time of the purported vote. The letter further stated that if Faith was allowing Pastor Brown to occupy the pulpit or remain on the premises despite his removal as pastor, such action would constitute "an improper use of a place of EMC worship." The letter finally advised: "Unless the undersigned receives confirmation that [Faith] will participate in conciliation within fifteen (15) days of the date of this letter, the EMC will initiate legal action to require [Faith] to participate in Christian Conciliation." On July 26, 2010, Faith responded to EMC's July 13 letter, stating that it had decided to retain Pastor Brown. The letter did not address conciliation.

On September 30, 2010, EMC filed this action in district court to compel Faith to "comply with its agreement to participate in conciliation, mediation and arbitration." Faith responded, requesting dismissal as the matter at hand involved a "doctrinal dispute" that could not be settled by the courts. A hearing was held on November 12 and 15, 2010. The district court granted the application to compel arbitration and further directed that EMC and Faith "shall schedule an annual conference for Faith ... to be held within 120 days of the filing of this ruling." EMC appeals and Faith cross-appeals.

II. Standard of Review

We review a district court's ruling on a motion to compel arbitration for the correction of errors at law. Wesley Retirement Servs., Inc. v. Hansen Lind Meyer, Inc., 594 N.W.2d 22, 29 (Iowa 1999).

HI. Cross-Appeal

A. Agreement to Arbitrate

We begin by addressing Faith's cross-appeal, in which Faith argues the district court erred in finding a valid contract between the parties containing a requirement the parties arbitrate their non-doctrinal disputes. In interpreting the language of an agreement to arbitrate a dispute, our judicial task is twofold: "to determine whether there is a valid agreement to arbitrate and to determine whether the controversy alleged is embraced by that agreement." Lewis Cent. Educ. Ass'n v. Lewis Cent. Cmty. Sch. Dist., 559 N.W.2d 19, 21 (Iowa 1997).

[121]*121"'Arbitration is a matter of contract and parties cannot be compelled to arbitrate a question which they have not agreed to arbitrate'" Bullis v. Bear, Stearns & Co., Inc., 553 N.W.2d 599, 601-02 (Iowa 1996). In determining the arbi-trability of an agreement, our threshold question is "whether the parties agreed to settle the disputed issue by arbitration." Postville Cmty. Sch. Dist. v. Billmeyer, 548 N.W.2d 558, 560 (Iowa 1996). EMC contends there is a valid agreement between the parties to arbitrate the disputed issues; Faith asserts there is no written contract between the parties, as required under Iowa Code section 679A.1 (2009), which would compel arbitration.

Towa Code section 679A.1(2) governs arbitration as it relates to future controver-gies arising between parties. It specifically references the necessity of a written contract, stating:

A provision in a written contract to subrait to arbitration a future controversy arising between the parties is valid, enforceable, and irrevocable unless grounds exist at law or in equity for the revocation of the contract. This subsection shall not apply to any of the following:
a. A contract of adhesion.
b. A contract between employers and employees.
c. Unless otherwise provided in a separate writing executed by all parties to the contract, any claim sounding in tort whether or not involving a breach of contract.

Towa Code § 679A.1(2).

EMC argues that the Discipline, which contains the constitution, by-laws, and governing documents of EMC, "is contractual even though the Discipline does not expressly use the term 'contract' in identifying the parties relationship." EMC maintains the Discipline functions as an offer to local churches to join the General Conference of the EMC, and that the terms of the offer are the terms contained in the Discipline. Paragraph 701 of the Discipline states, in pertinent part,

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Bluebook (online)
809 N.W.2d 117, 2011 Iowa App. LEXIS 1369, 2011 WL 5867985, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-conference-of-the-evangelical-methodist-church-v-faith-evangelical-iowactapp-2011.