Arbitration services protecting constitutionally secured property rights held as trust res from unauthorized commercial use and interference, operating under the Federal Arbitration Act of 1925, 43 Stat. 883 (9 U.S.C. §§ 1-16).
Facts and Conclusions of Law Establishing Constitutional Property Rights as Trust Res
The Supreme Court in Lynch v. Household Finance Corp., 405 U.S. 538, 552 (1972) declared: "The dichotomy between personal liberties and property rights is a false one. Property does not have rights. People have rights... In fact, a fundamental interdependence exists between the personal right to liberty and the personal right in property. Neither could have meaning without the other."
This holding establishes as a conclusion of law that constitutional rights secured to individuals ARE property interests that may be placed in trust for their protection.
When an individual exercises the constitutional liberty to contract by placing property interests into a trust, such property becomes the TRUST RES — the subject matter of the trust — which the trustee has a fiduciary duty to protect against interference.
The Supreme Court in Hale v. Henkel, 201 U.S. 43, 74-75 (1906) declared: "The individual may stand upon his constitutional rights as a citizen. He is entitled to carry on his private business in his own way. His power to contract is unlimited. He owes no duty to the State or to his neighbors to divulge his business, or to open his doors to an investigation, so far as it may tend to criminate him."
The Supreme Court in Allgeyer v. Louisiana, 165 U.S. 578, 589 (1897) established the constitutional liberty to contract embraces "the right of the citizen to be free in the enjoyment of all his faculties, to be free to use them in all lawful ways... and for that purpose to enter into all contracts which may be proper, necessary, and essential."
The Civil Rights Act of 1866, 14 Stat. 27, secured to all citizens "the same right... to make and enforce contracts." This right includes the establishment of trusts with arbitration clauses for the protection of constitutionally secured property interests.
The trust agreement executed by the beneficiary places constitutionally secured property rights into trust as the trust res and contains an arbitration clause requiring all disputes concerning the trust res to be resolved through binding arbitration.
The Federal Arbitration Act of 1925, 43 Stat. 883 (9 U.S.C. § 2), provides: "A written provision in any... contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction... shall be valid, irrevocable, and enforceable."
The Supreme Court in Moses H. Cone Memorial Hospital v. Mercury Construction Corp., 460 U.S. 1, 24-25 (1983) established that the Federal Arbitration Act creates "a body of federal substantive law of arbitrability" and reflects "a liberal federal policy favoring arbitration agreements."
The critical distinction in trust property arbitration is that the PROPERTY is the subject matter of the arbitration — not the contractual relationship between parties.
A party need not be a signatory to the trust agreement or a member of any contract to be held liable for interference with trust property. The issue is the PROPERTY ITSELF — the constitutionally secured RIGHT that has been interfered with.
The Supreme Court in United States v. General Motors Corp., 323 U.S. 373, 378 (1945) declared: "The constitutional provision is addressed to every sort of interest the citizen may possess."
Any person who utilizes the constitutional property of another for commercial business without consent and without approval, especially after receiving a cease-and-desist letter, interferes with trust property and subjects themselves to the protective mechanisms established by the trust, including arbitration.
The trust res — constitutionally secured property rights — is protected by the trustee who has a fiduciary duty to defend the trust property against all interference, including unauthorized commercial use.
The Federal Arbitration Act of 1925, 43 Stat. 883 (9 U.S.C. §§ 1-16), requires arbitration agreements to be "valid, irrevocable, and enforceable" with a "liberal federal policy favoring arbitration."
Any person who interferes with trust property — the constitutionally secured rights held as trust res — subjects themselves to liability regardless of whether they are a party to the trust agreement.
The Civil Rights Act of 1871, 17 Stat. 13 (42 U.S.C. § 1983), provides: "Every person who... subjects, or causes to be subjected, any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Constitution and laws, shall be liable to the party injured..."
The Supreme Court in Webb's Fabulous Pharmacies, Inc. v. Beckwith, 449 U.S. 155, 164 (1980) declared: "A State, by ipse dixit, may not transform private property into public property without compensation."
Similarly, a private party, by ipse dixit or commercial practice, may not transform the constitutional property of another into commercial product without consent and compensation.
When a party receives a cease-and-desist letter notifying them of the trust property status of constitutional rights and demanding they cease unauthorized commercial use, continued interference constitutes willful deprivation of property rights.
The Supreme Court in Boyd v. United States, 116 U.S. 616, 630 (1886) declared the right to be secure in person, liberty, and private property an "indefeasible right" — a right that cannot be defeated, voided, or annulled by unauthorized interference.
Continued interference after notice establishes grounds for arbitration petition for disposition of the controversy and determination of liability.
Individuals whose property interests are held in trust may petition the arbitrator for disposition of controversies arising from interference with trust res.
The SITCOMM Arbitration Association provides arbitration services for individuals whose constitutionally secured property rights held as trust res have been interfered with through unauthorized commercial use.
The arbitration is conducted pursuant to the Federal Arbitration Act of 1925, 43 Stat. 883 (9 U.S.C. §§ 1-16), and the arbitration clause contained in the trust agreement.
The trustee, whose fiduciary duty it is to protect the trust res, may petition the arbitrator on behalf of the beneficiary for disposition of the controversy and determination of liability for interference with trust property.
Any presumption that a non-signatory to the trust agreement cannot be compelled to arbitrate or held liable for interference with trust property is rebutted by the fact that the arbitration concerns the trust res itself — the PROPERTY is the subject matter. Third parties who interfere with trust property subject themselves to the protective mechanisms established by the trust. The Supreme Court's holdings that constitutional rights ARE property (Lynch, 405 U.S. at 552) and that the individual's power to contract is unlimited (Hale, 201 U.S. at 74-75) establish the validity of placing such rights in trust for protection through arbitration.
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