Hart v. Roman Catholic Episcopal Corporation of the Diocese of Kingston, in Canada, 2011 ONCA 728 deals with the authority (or lack thereof) of the Courts to adjudicate issues arising in self-governing organizations:
[17] As a general rule, the Superior Court of Justice has jurisdiction to adjudicate claims of wrongful dismissal and breach of an employment contract. But the general rule has exceptions. One well recognized exception is where the essential character of a dispute between an employer and an employee arises from the interpretation, application, administration, or violation of a collective agreement. Those disputes must be resolved by arbitration, not by an action in the court: see Weber v. Ontario Hydro, [1995] 2 S.C.R. 929.
[18] A second exception is where the rules of a self-governing organization, especially a religious organization, provide an internal dispute resolution process. A person who voluntarily chooses to be a member of a self-governing organization and who has been aggrieved by a decision of that organization must seek redress in the internal procedures of the organization: see Levitts Kosher Foods v. Levin (1999), 45 O.R. (3d) 147 (S.C.).
[19] The courts will interfere in the internal affairs of a self-governing organization in only two situations: where the organization’s internal processes are unfair or do not meet the requirements of natural justice; or where the aggrieved party has exhausted the organization’s internal processes. In the latter case, subject to any enabling statutory provision, the reviewing court will not consider the merits of the internal decision, but will determine only whether the decision was carried out in accordance with the organization’s rules and the requirements of natural justice: see Ukrainian Greek Orthodox of Canada v. Ukrainian Greek Orthodox Cathedral of St. Mary the Protectress, [1940] S.C.R. 586; Lakeside Colony of Hutterian Brothren v. Hofer, [1992] 3 S.C.R. 165; Mott-Trille v. Steed (1996), 27 O.R. (3d) 486 (S.C.).
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