New Jersey Arbitration Agreements Need Not Designate A Specific Arbitrator Or "Arbitral Forum" To Be Enforceable

Seyfarth Synopsis: In Flanzman v. Jenny Craig, Inc., the New Jersey Supreme Court reversed the Appellate Division and held that an arbitration agreement may bind the parties even if the agreement does not designate a specific arbitrator, arbitration organization, or process for such a designation.  In situations where there is no such designation, the default rules found in the Federal Arbitration Act and New Jersey Arbitration Act will apply to fill any gaps in the agreement.

The New Jersey Supreme Court recently issued an opinion in Flanzman v. Jenny Craig, Inc. reversing the Appellate Division and enforcing the parties' arbitration agreement.  Plaintiff, a former employee, argued that the arbitration agreement was unenforceable because it did not designate a specific arbitrator, arbitration organization, or process for such a designation.  The Court rejected this argument because both the New Jersey Arbitration Act (NJAA) and Federal Arbitration Act (FAA)