March 12, 2019 Articles

New Jersey Refuses to Enforce Arbitration Agreement

The parties did not understand the rights under the arbitration agreement that ostensibly foreclosed the plaintiff’s right to a jury trial.

By P. Jean Baker

Enforcement of arbitration agreements just got more difficult in New Jersey. Continuing a trend that began in 2014, the New Jersey Appellate Division refused to enforce an arbitration agreement in an employment contract because the drafter did not identify an arbitral forum, such as the American Arbitration Association (AAA), or a process for conducting the proceeding. The parties therefore lacked a “meeting of the minds” because they “did not understand the rights under the arbitration agreement that ostensibly foreclosed plaintiff’s right to a jury trial.” Flanzman v. Jenny Craig, Inc., No. A-2580-17T1 (N.J. Super. Ct. App. Div. Oct. 17, 2018). 

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