Morgan v. Sanford Brown Institute

Case Updates

The New Jersey Supreme Court held that a contract requiring arbitration of all disputes arising from the contract is unenforceable because it doesn’t contain a special warning that by agreeing to “arbitrate” disputes, consumers were agreeing to give up their right to a judicial forum.

The U.S. Chamber, together with the New Jersey Civil Justice Institute, filed a brief urging the New Jersey Supreme Court to reject a rule that would refuse to compel arbitration of statutory consumer protection claims unless the arbitration agreement contains a heightened warning that such claims will be arbitrated. The brief argued that such rule is premised on hostility toward arbitration and is squarely preempted by the Federal Arbitration Act.

Gavin Rooney, Joseph Fischetti, and Amy Gromek of Lowenstein Sandler LLP served as co-counsel to the New Jersey Civil Justice Institute and the U.S. Chamber Litigation Center.