New Jersey Supreme Court

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August 09, 2006

The New Jersey Supreme Court agreed with NCLC’s argument that arbitration agreements which preclude the use of class actions are not unconscionable. The court determined the class action bar was not unconscionable because the case raised high stakes and the prospect of attorneys’ fees.

NCLC files motion for leave to file amicus brief addressing unconscionability of non-mutual obligations to arbitrate and of class-wide arbitration waivers

November 17, 2005

The New Jersey Supreme Court accepted a certified question from the United States Court of Appeals for the Third Circuit which asks whether the arbitration clause at issue is unconscionable. In particular, the arbitration clause, which was included in a mortgage loan contract, provided that foreclosure actions, eviction actions, and other rights of self-help could be litigated in court, but required that all other actions involving the contract be submitted to arbitration. The plaintiff believes that this non-mutuality of obligation renders the provision unconscionable. In addition, the plaintiff challenges the bar to class-wide arbitration. The district court rejected both challenges.