Arbitration Clauses Extending to Non-Signatory Affiliates: Are They Enforceable?
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A recent decision of the New Jersey Appellate Division considered the enforceability of arbitration agreements by non-signatories, writes .
She discusses a case in which the plaintiff filed a putative class action complaint against defendant alleging violations of New Jersey’s Truth-In-Consumer Contract, Warranty and Notice Act, as well as the state’s Lemon Law.
The panel determined, among other things, that by signing a lease agreement, plaintiff agreed to arbitrate her dispute not only with the underlying signatories of the lease, but with any of its affiliates. Now the plaintiff will need to decide whether to pursue her claims in arbitration, Tillem explains.
