Universal Forum of Cultures Barcelona 2004 v. Council for a Parliament of the World’s Religions

Universal Forum of Cultures Barcelona 2004, S.L. (forum) (plaintiff), the Council for a Parliament of the World’s Religions (council) (defendant), and the UNESCO Centre of Catalonia (centre) contracted to hold an event in Barcelona, Spain called the 2004 Parliament of the World’s Religions. The parties executed a memorandum of understanding that governed their relationship. The memorandum provided that Spanish law would govern the agreement and that the parties would seek to resolve disputes through mediation and then through mandatory arbitration if needed. After the parliament, the council owed money to the forum, but the parties disputed the amount. The forum established a payment schedule for the council after extended discussions, and the council accepted the agreement. However, the council failed to make the required payments. The forum convened an arbitration proceeding under the original memorandum’s arbitration provision. The council objected, claiming that the required mediation step had not occurred and that arbitration was unenforceable. Because the memorandum stated that the parties would “seek” to mediate disputes, the arbitrator found that mediation was not a requirement and that the parties needed only to attempt it. The arbitrator further found that the forum had sufficiently sought mediation in its communication with the council. The arbitrator ruled in favor of the forum and issued an award. The forum filed a petition in United States federal district court to confirm the award, and the council moved to dismiss the petition or alternatively to deny the award.