May 23, 2019 Articles

Unintended Consequences of Badly Drafted Arbitration Agreements

Recent court decisions highlight the need for counsel to carefully draft or review arbitration agreements to ensure a client obtains the dispute resolution process the client really wanted.

By P. Jean Baker

Unintended Consequences: Exclusions to Arbitration

Recent court decisions highlight the need for counsel to carefully draft or review arbitration agreements to ensure a client obtains the dispute resolution process the client really wanted. The first case involves exclusions to arbitration, Webster v. OneMain Financial Inc., No. CV 18-2711 (D.N.J. Dec. 4, 2018). Webster filed suit against OneMain Financial for alleged negligent or willful violations of the federal Fair Credit Reporting Act (FCRA) in relation to a loan made by OneMain to Webster. Webster sought aggregated damages (actual, statutory, and punitive) amounting to $5,194.00. Suit was filed in the Special Civil Part of New Jersey’s Superior Court, in which recovery is capped at $15,000.

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