NJ Case Has Lessons On Arbitration Clauses In Atty Retainers

Law360 (February 4, 2021, 1:54 PM EST) -- On Dec. 21, 2020, the New Jersey Supreme Court issued Delaney v. Dickey, an opinion that severely limits the enforceability of arbitration provisions in law firm retainer agreements.

The court held that an arbitration provision in a retainer agreement is only enforceable if an attorney provides "an explanation of the advantages or disadvantages of arbitration" to a client before the client signs the retainer agreement.[1]

The decision, which applies prospectively, tracks and builds on other jurisdictions' limitations on the enforceability of arbitration provisions in retainer agreements. Attorneys wishing to resolve client disputes via arbitration should take close note of these heightened...

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