Arbitration based on Sharia law is increasingly invoked in private disputes. While voluntary faith-based arbitration is protected by the First Amendment, courts are inundated with claims under Sharia law that violate the U.S. constitution as well as federal and state statutes, particularly in divorce, child custody, inheritance, and gender-related business disputes.
While arbitration guided by Christian or Judaic faith-based principles (not law) rarely collide with civil rights laws or the Constitutional guarantees of due-process and equal protection, many Sharia law applications are in conflict.
COURTS HAVE REPEATEDLY REJECTED SHARIA-LAW BASED ARBITRATION AGREEMENTS:
1. Sharia law applications are in conflict with gender equality, inheritance rights, and family law statutes.
2. Arbitration agreements based on Sharia law are frequently scrutinized by courts for disputes in consent by the parties, creating legal uncertainty and risk of coercion.
3. Application of foreign legal systems incorporating Sharia laws pose unique risks and are in conflict with Constitutional equal protection, due process, and civil rights.
4. Interpretations based on Sharia law in arbitration decisions are often contrary to protections guaranteed by Federal and State statutes.
New Federal and State legislation should make clear that Sharia law cannot override U.S. federal or state law in arbitration, while still allowing voluntary faith-guided arbitration that complies with civil laws. This approach protects religious freedom, ensures legal certainty, and safeguards constitutional rights for all parties.
RECOMMENDATION FOR NEW LEGISLATION:
1. Enact statutes explicitly affirming that no religious law—including Sharia—can override federal, state, or local law in arbitration.
2. Specify that contracts, arbitration agreements, or judgments based on religious law are unenforceable to the extent they violate civil rights, public policy, or gender equality.
3. Provide guidance to Courts on the application of religious arbitration only when:
✓ Participation is truly voluntary
✓ No civil law rights are violated
✓ Outcomes comply with public policy
4. Provide guidance to legal practitioners on the limits of religious arbitration, emphasizing that constitutional protections cannot be waived through religious contracts.