Untitled California Attorney General Opinion

California Attorney General Reports·Decided August 20, 1987·No. 86-701·Published

Opinion

TO BE PUBLISHED IN THE OFFICIAL REPORTS

OFFICE OF THE ATTORNEY GENERAL

State of California

JOHN K. VAN DE KAMP

Attorney General

------------------------------ : OPINION : : of : No. 86-701 : JOHN K. VAN DE KAMP : AUGUST 20, 1987 Attorney General : : ANTHONY S. DA VIGO : Deputy Attorney General : : -----------------------------------------------------------

THE HONORABLE WILLIAM P. BAKER, MEMBER OF THE CALIFORNIA ASSEMBLY, has requested an opinion on the following question:

Is a written agreement between the parties to a civil dispute to submit the dispute to arbitration by a third party not a member of the State Bar of California for resolution pursuant to and in accordance with the tenets of their religious affiliation, both valid and enforceable?

CONCLUSION

A written agreement, which does not otherwise violate the law or the public policy of the state, between the parties to a civil dispute to submit the dispute to arbitration by a third party not a member of the State Bar of California for resolution pursuant to and in accordance with the tenets of their religious affiliation, is both valid and enforceable.

ANALYSIS

We are advised that according to the tenets of a particular religious denomination, the resolution of civil disputes among its members must be determined within and pursuant to the principles and imperatives of doctrinal precepts and ethics. In this regard it is stated that:

"Internal dispute resolution procedures have existed within diverse ecclesiastical traditions for thousands of years. Internal dispute resolution procedures are critical to the obedience of the religious body to its religious requirements, to the maintenance of discipline and uniform compliance to its religious standards by its members, to the maintenance of unity within the religious community, to the protection of its reputation in society, and to the preservation of its distinctive religious identity. Within the Christian tradition, the ultimate purpose of the internal dispute resolution process is to bring reconciliation between the persons, not simply to settle a legal dispute."

The inquiry presented is whether two or more members may submit such a dispute between them to a third party member of the denomination who is not a member of the State Bar of California, for arbitration according to such principles. Specifically, it must be determined whether such a submission for arbitration, pursuant to the terms of an express written agreement, would be valid and enforceable.

A "civil dispute" for purposes of this discussion refers to a disagreement between two or more parties relating to their private rights, providing a basis for a civil, as distinguished from a criminal, action. (Cf., Code Civ. Proc. § 24; Bailey v. Superior Court (1956) 142 Cal.App.2d 47, 53; Webster's New Internat. Dict. (3rd ed., 1961) pp. 412-413, "civil".) A "civil action", arising out of an obligation, whether contractual or by operation of law, or injury, whether to the person or to property (Code Civ. Proc., §§ 25, 26, 27), is prosecuted by one party against another for the declaration, enforcement or protection of a right, or the redress or prevention of a wrong. (Code Civ. Proc., § 30; Black's Law Dict. (Spec. Deluxe 5th ed., 1979), p. 222, "civil action".) An action is an ordinary proceeding in a court of justice (Code Civ. Proc., § 22), the primary judicial function of which is to enforce legal obligations and redress injuries to legal rights by the determination of such disputes. (Warner v. F. Thomas Parisian Dyeing & Cleaning Works (1895) 105 Cal. 409, 412; Vecki v. Sorensen (1959) 171 Cal.App.2d 390, 393.) Thus, civil disputes are generally determined by the law of the state, as hereinafter defined, and enforced in particular cases by litigation between the parties in the courts.

The parties to a civil dispute may, in the alternative, submit a controversy for determination and decision to a private, unofficial third party in the manner provided by law or by agreement. (Stockwell v. Equitable Fine & Marine Ins. Co. (1933) 134 Cal.App. 534, 540.) This summary and expeditious means of extra-judicial dispute resolution, pursuant to a stipulation of the parties, is called arbitration. (Snyder v. Superior Court (1937) 24 Cal.App.2d 263, 267.)1

1 We are not presented in connection with the present inquiry with the specific terms and conditions of any particular agreement or the nature of any certain dispute. It is assumed for purposes of this analysis that neither the underlying contract which provides for arbitration nor any course of action prescribed by an award thereunder would be contrary to law or public policy. (See American & Nat. etc. Baseball Clubs v. Major League etc. Assn. (1976) 59 Cal.App.3d 493, 498.) It will be further assumed that the matter in dispute does not fall within the realm of public concern which might not be subject to arbitration by individuals. (Cf. Estate of Carpenter (1900) 127 Cal. 582, 585 - contest as to validity of will; Franklin v. Nat. C. Goldstone Agency (1949) 33 Cal.2d 628, 632 - enforcement of contract entered into without prerequisite license.)

2. 86-701

With respect to arbitration as an alternative method for the resolution of justiciable controversies, it has been said that "by reason of the fact that the proceeding represents a method of the parties' own choice and furnishes a more expeditious and less expensive means of settling controversies than the ordinary course of regular judicial proceedings, it is the policy of the law to favor arbitration. Therefore every reasonable intendment will be indulged to give effect to such proceedings." (Utah Const. Co. v. Western Pac. Ry. Co. (1916) 174 Cal. 156, 159; and see Izzy v. Mesquite Country Club (1986) 186 Cal.App.3d 1309, 1315.) Further, an agreement to arbitrate should be liberally construed in furtherance of the policy of the law to encourage the settlement of disputes by arbitration. (Solari v. Oneto (1958) 166 Cal.App.2d 145, 153.)

The Legislature has enacted a comprehensive all-inclusive statutory scheme applicable to all written agreements to arbitrate. (Code Civ. Proc., § 1280 et seq.; Solari v. Oneto, supra, 166 Cal.App.2d at 153.)2 Section 1281 of the Code of Civil Procedure provides as follows:

"A written agreement to submit to arbitration an existing controversy or a controversy thereafter arising is valid, enforceable and irrevocable, save upon such grounds as exist for the revocation of any contract."

In Sanserino v. Shamberger (1966) 245 Cal.App.2d 630, 636, the court similarly stated:

"When an agreement provides for the determination by a third person or persons of some proper matter to be settled and that the decision shall be final, a submission to and determination by him or them of the matter is binding on the parties. That is true whether the arrangement is technically a common law or statutory arbitration or something akin thereto. [Citations.]"

Section 1280, subdivision (c), of said code defines an arbitrable controversy as covering "any question" arising between the parties to an agreement whether such question is one of law or of fact or both. (See 64 Ops.Cal.Atty.Gen. 47, 50-51 (1981).) Hence, any justiciable issue, except as noted in footnote 1, ante, is arbitrable.

The conduct, evidence, and procedure of an arbitration hearing may be prescribed by the agreement itself.3 A self-executing arbitration clause is one which permits and provides for arbitration under rules therein incorporated. (Mitchum, Jones & Templeton, Inc. v. Chronis (1977)

2 Since the agreement in question is written, the doctrines applicable to common law arbitration are inapposite. (Id., at 151; Crofoot v. Blair Holdings Corp. (1953) 119 Cal.App.2d 156, 181.)

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