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Conciliation Clauses

One of the best ways to make sure that a conflict is resolved constructively is to include a conciliation clause in any contract you sign. These clauses are legally enforceable and require that any dispute related to the contract be resolved through biblically-based mediation or arbitration rather than through litigation.

Using these clauses may help you to avoid the stress and expense of the secular legal system. They should not be used merely for that reason, however. Conciliation clauses should be used by those who are truly committed to biblical principles of peace, justice, and reconciliation, and who place a high priority on honoring God and preserving relationships even in the midst of conflict.

Conciliation clauses may be written in several ways, depending upon the preferences of the parties. The Institute for Christian Conciliation™ (ICC) has developed and recommends the language in the following three clauses. There is no copyright on these clauses, and you are free to use them at your discretion. Should you use these clauses, it would be wise to provide the parties with a copy of the Rules of Procedure referenced therein. This language has been court-tested and should be modified only with advice of legal counsel:

The parties to this agreement are Christians and believe that the Bible commands them to make every effort to live at peace and to resolve disputes with each other in private or within the Christian church (see Matthew 18:15-20; 1 Corinthians 6:1-8). Therefore, the parties agree that any claim or dispute arising from or related to this agreement shall be settled by biblically-based mediation and, if necessary, legally binding arbitration in accordance with the Rules of Procedure for Christian Conciliation of the Institute for Christian Conciliation, a division of Peacemaker® Ministries (complete text of the Rules is available at www.Peacemaker.net). Judgment upon an arbitration decision may be entered in any court otherwise having jurisdiction. The parties understand that these methods shall be the sole remedy for any controversy or claim arising out of this agreement and expressly waive their right to file a lawsuit in any civil court against one another for such disputes, except to enforce an arbitration decision.

If you prefer more concise language, you may use a clause like this:

Any claim or dispute arising from or related to this agreement shall be settled by mediation and, if necessary, legally binding arbitration in accordance with the Rules of Procedure for Christian Conciliation of the Institute for Christian Conciliation, a division of Peacemaker® Ministries (complete text of the Rules is available at www.Peacemaker.net). Judgment upon an arbitration decision may be entered in any court otherwise having jurisdiction. The parties understand that these methods shall be the sole remedy for any controversy or claim arising out of this agreement and expressly waive their right to file a lawsuit in any civil court against one another for such disputes, except to enforce an arbitration decision.

These clauses are being used throughout the country by a wide variety of churches, businesses, ministries, and schools.

Conciliation clauses may also be included in wills. Although conciliation language in wills is not legally enforceable in most states, it can still encourage people who have disagreements over a will to settle their differences in a conciliatory manner. The following language is appropriate for use in a will:

I believe that God wants Christians to make every effort to live at peace and to resolve disputes with one another in private or within the church (see Matthew 18:15-20; 1 Corinthians 6:1-8; Ephesians 4:1-3). I believe that obedience to these principles honors and pleases God, benefits those involved, and may lead others to faith in Christ. Therefore, trusting that my family and friends will honor my beliefs and wishes, I ask that any questions or disputes that may arise during the administration of my estate be settled by mediation and, if necessary, arbitration in accordance with the Rules of Procedure for Christian Conciliation of the Institute for Christian Conciliation, a division of Peacemaker® Ministries.

Helpful Facts

Conciliation clauses have been used successfully for many years. The language suggested above is similar to language that has been used for decades by the American Arbitration Association.

Conciliation clauses may be used in almost any kind of contract. They are useful in employment, sales, construction, and professional services contracts.

Conciliation clauses are simple to use. Even though there are basic steps that must be followed when using them, these clauses are not complex. Once you understand the underlying concept, you may use them in many kinds of contracts.

Conciliation clauses can save you a great deal of time, money, and energy. A lawsuit can consume thousands of dollars, deplete you emotionally and spiritually, distract you from important activities and people, damage your reputation, and continue for years. A conciliation clause can help you to stay out of court and avoid many of these hardships.

Conciliation clauses can help to preserve valuable relationships. When conflict erupts over a contract and people go to court, the adversarial process often damages their relationships beyond repair. In contrast, conciliation provides a way to settle substantive issues while at the same time resolving personal differences and promoting genuine reconciliation, allowing people to resume their personal and business relationships.

Conciliation clauses are legally enforceable. Both state and federal courts will usually enforce conciliation agreements that require arbitration. If a dispute arises and either party refuses to participate in conciliation efforts, the other party may petition a court for an order to compel the parties to proceed with mediation and arbitration. Similarly, if either party files a lawsuit regarding a contract violation, the other party may ask the court to stop the suit and direct the parties to proceed with conciliation. For an example of a federal court decision upholding a clause that required Christian conciliation according to the ICC Rules of Procedure, see Encore Productions, Inc. vs Promise Keepers, 53 F. Supp. 2d 1102 (D. Colorado, 1999).

Conciliation clauses do not affect other rights. When you sign a contract containing a conciliation clause, only your rights and responsibilities related to that particular agreement are affected.

The best time to agree on how to settle a conflict is before it arises. When people are initially negotiating a contract, they are usually on friendly terms and seldom expect serious problems in their relationship. If a conflict arises later, however, trust evaporates quickly; people often become defensive, suspicious, and hostile, and may refuse to agree to conciliation. Therefore, the best time to suggest using conciliation is when a contract is first being written and both sides are inclined to see a conciliation clause as a prudent, nonthreatening precaution.

Conciliation clauses may be implemented even if there is not an established Christian conciliation ministry in the parties' community. The language proposed by the ICC commits the parties to a defined process, not to a particular conciliator. If a conflict develops and conciliation is necessary, the parties may ask leaders from their respective churches or other respected individuals in their community to settle the matter using the ICC Rules of Procedure. If such assistance is not easily available, they may bring in experienced conciliators from another location. (If the parties cannot agree on who will handle their case, the Rules provide that the ICC will make that decision.)

It is wise to talk with an attorney before using a conciliation clause. In some states conciliation clauses must be written in a certain way to be legally binding. For example, Montana requires that notice of arbitration provisions be printed on the front page of a contract in underlined capital letters (e.g., "THIS CONTRACT IS SUBJECT TO ARBITRATION UNDER THE MONTANA ARBITRATION ACT, TITLE 27, CHAPTER 5, MONTANA CODE ANNOTATED"). Texas requires that certain arbitration clauses be signed by legal counsel, and California has special requirements for clauses involving medical malpractice or real estate transactions. A visit with an attorney can confirm your commitment to avoid litigation, alert you to local requirements, and ensure the enforceability of a conciliation clause in your contract.

The ICC has materials that can help you explain the benefits of using conciliation clauses. One of the best ways to persuade other people to agree to use a conciliation clause is to encourage them to visit our web site and provide them with copies of The Peacemaker brochure and these Guidelines.

If you begin using conciliation clauses today, you are taking a wise precaution against unnecessary stress and expense in the future. Moreover, by openly committing yourself to the conflict resolution principles set forth in Scripture, you will be making a clear statement that you trust in God and desire to follow his principles in every aspect of your life.

Please feel free to contact a local Christian conciliation ministry or Peacemaker Ministries (www.Peacemaker.net) for more information about the use of Christian conciliation clauses.

Adapted from Guidelines for Christian Conciliation, ver 4.5 (3/05)

 

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