Another Hoop To Jump Through When Drafting Arbitration Agreements In New Jersey

Adding yet another hurdle that parties in New Jersey must overcome to ensure New Jersey courts enforce their arbitration agreements, the New Jersey Appellate Division invalidated an otherwise binding arbitration clause because it did not specify which company (or "process") would conduct the arbitration. Flanzman v. Jenny Craig, Inc., ___ N.J. Super. ___ (2018) (slip op. at 1). Because an arbitral forum (such as the American Arbitration Association) or some other method to select the arbitration setting was not detailed in the arbitration clause, the Flanzman court held that the parties did not have a "meeting of the minds."

The relevant portion of the arbitration clause stated: