If your contract requires mandatory arbitration and you fail to pay the arbitration fee in advance, you automatically waive your right to enforce an arbitration clause, the New Jersey Supreme Court said in a recently published case. The court rules that the failure to abide by contractual language mandating the advancement of arbitration fees amounts to a “material Breach” of the contract, and therefore invalidates the arbitration clause and will result in the dismissal of an arbitration claim. The failure to advance fees ‘goes to the essence’ of the dispute resolution agreement and amounts to a material breach. New Jersey courts had never before ruled whether a failure to advance arbitration fees amounted to a material breach of a dispute …
Litigation of Arbitration Disputes Pending a Judicial Decision on the Arbitrability of the Dispute
By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Freehold, NJ Arbitration Attorney New Jersey’s federal and state courts are in accord with respect to requiring a party to arbitrate a dispute prior to a determination that the dispute is, in fact, subject to arbitration. Federal Court In a Federal case, the court held that ”the harm to a party would be per se irreparable if a court were to abdicate its responsibility to determine the scope of an arbitrator’s jurisdiction and, instead, were to compel the party, who has not agreed to do so, to submit to an arbitrator’s own determination of his authority.” State Court Several New Jersey courts have like-wise found that requiring a party to arbitrate …
Bill Would Outlaw Mandatory Arbitration in Consumer Contracts
By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Freehold, NJ Arbitration Law Firm This article appeared in the New Jersey Law Journal on February 6, 2015. A trio of New Jersey lawmakers is sponsoring legislation that would bar companies from forcing customers to sign contracts in which they waive their rights to sue and instead must pursue any claims through arbitration. The Assembly Consumer Affairs Committee recommended passage of the bill, A4097, in a 3-1 vote Feb. 5. The bill is sponsored by the three Democrats on the committee—Chairman Paul Moriarty, D-Gloucester, and Assemblymen Patrick Diegnan Jr., D-Middlesex, and Charles Mainor, D-Hudson. The bill would amend the state’s Truth-in-Consumer Contract, Warranty and Notice Act to prohibit consumer contracts from …
Non-Competition Agreements and Arbitration
By Fredrick P. Niemann, Esq. of Hanlon Niemann, a Freehold, NJ Arbitration Attorney Although the Federal Arbitration Act is federal legislation, that is, the law of the land, the frequency with which it is part of standard employment contracts means that state courts, rather than federal courts, are more frequently called on to apply the Act to a contract dispute. Thirty years ago, the U.S. Supreme Court said that the Act declares “a national policy favoring arbitration.” More recently, it has firmly come down against what it regarded as a state Supreme Court’s “judicial hostility” towards arbitration. The case arose out of litigation that ensued when two employees, whose contracts with their employer included non-competition and arbitration clauses, left those …
MAY AN ORAL SETTLEMENT AGREEMENT REACHED THROUGH MEDIATION BE ENFORCED BY THE COURT?
By Fredrick P. Niemann, Esq. a New Jersey Arbitration Lawyer In New Jersey an oral settlement agreement reached during mediation can be enforced. However, the party seeking to enforce a mediator’s decision needs to waive his right to confidentiality of the mediation proceedings. In a recent case, the plaintiff claimed that no final, binding settlement agreement was reached at the mediation session. Defendants’ responded by filing a motion to enforce the mediation settlement. Five witnesses including the mediator testified at a hearing. The lower court held that the parties had reached a final, binding settlement at the mediation session. Plaintiff appealed, arguing that under New Jersey Court rules, the oral settlement was not enforceable because it did not meet the …
UNDERSTANDING THE BENEFITS OF ARBITRATION IN NEW JERSEY
By Fredrick P. Niemann, Esq. a New Jersey Arbitration lawyer Arbitration is when you settle a case with the opposing party outside of court, as what it is commonly known as. This is a legal process, but it is not as formal as a jury trial. The goal with arbitration is to reach a settlement on a case without having to go to court. This is typically used in less-serious cases, although some cases that are high-profile end up being arbitrated as well. Arbitration is not as lengthy and drawn out as going to court over a dispute. Arbitration is much more straightforward and simple than a complicated civil court trial, where the jury has to decide whether or …