New Jersey arbitration agreements must unambiguously inform plaintiffs that they are giving up right to pursue claims in court.
A motion to compel arbitration was denied on appeal. The arbitration clause could not be enforced by the trial court because it did not unambiguously inform the plaintiff that signing meant giving up right to pursue claims in court. The plaintiff was a minor who suffered an ankle fracture while playing dodgeball at a trampoline facility. The release was signed by the plaintiff’s father. The release included an arbitration clause. The case gives an analysis of standard contract principles to be applied to arbitration agreements, and, therefore, an arbitration clause must be sufficiently clear that it is a waiver of a constitutional or statutory right.
Case Law Alerts, 2nd Quarter, April 2020 is prepared by Marshall Dennehey Warner Coleman & Goggin to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2020 Marshall Dennehey Warner Coleman & Goggin, all rights reserved. This article may not be reprinted without the express written permission of our firm.