NJ Justices Send Car Dealer Fraud Claims Back To Arbitration

Law360 (June 5, 2019, 4:31 PM EDT) -- The New Jersey Supreme Court reinstated a trial court order sending consumer fraud claims against two auto dealers into arbitration, ruling Wednesday that the car buyers were challenging their sales contracts, not their agreement to settle claims out of court.

The justices invoked U.S. Supreme Court precedent in handing a unanimous victory to Foulke Management Corp. and Mall Chevrolet Inc., whose trial court win in the consolidated suits was overturned by the state Appellate Division.

The nation’s highest court has held in cases such as Paint Corp. v. Flood Conklin Manufacturing Co. in 1967 that claims targeting an overall contract, rather...

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