Muhammad v. County Bank of Rehoboth Beach, Delaware, et al.

Case Updates

The New Jersey Supreme Court ruled that arbitration agreements which preclude the use of class actions are unconscionable under New Jersey law.

NCLC urged the New Jersey Supreme Court to enforce class action waivers in arbitration agreements. In this case, the plaintiffs brought a proposed class action against a bank over disputed interest rates, and the bank sought to enforce a mandatory arbitrary provision waiving class-wide resolution of claims. In its brief, NCLC argued that arbitration is a fast, fair and efficient alternative to litigation, and that federal law preempts state refusals to enforce class waivers as unconscionable.