New York State Court of Appeals Holds that God’s Battalion Must Arbitrate

The New York State Court of Appeals issued a decision yesterday reaffirming a “long-standing rule” that an arbitration clause in awritten agreement is enforceable even if the agreement is not signed. The issue is not whether the contract wassigned but, rather, whether the parties intended to be bound by it.

An architectural firm agreed to undertake an expansion andrenovation of the facilities of God’s Battalion of Prayer PentecostalChurch. The firm sent the Church astandard architectural form contract that contained an arbitration clause. The Church did not sign and return the formcontract but maintained it in its files. When the job wasn’t performed to the Church’s satisfaction, it sued thearchitects for breach of contract and malpractice. The Church did not want to submit toarbitration and argued that it had not signed the contract. The problem for the Church, however, was thatit relied on the very same form agreement in its breach of contract claimsagainst the architectural firm. Thecourt held that the Church could not “pick and choose” enforcement of theprovisions of the contract the served its purposes. Because the Church intended to be bound bythe contract, it was compelled to arbitrate.

God’s Battalion of Prayer Pentecostal Church, Inc. v. Miele Assocs. (N.Y. Mar. 23, 2006).

[Meredith R. Miller]