Warranty Cos. Can't Force Fraud Claims Into Arbitration

Law360, Clifton, N.J. (June 23, 2017, 8:28 PM EDT) -- A New Jersey state appeals court on Friday rejected a bid from home warranty companies to force a putative class action over consumer fraud and related allegations into arbitration, saying a contract did not clearly notify a customer that she was waiving her right to pursue her claims in court.

The two-judge appellate panel upheld a trial court ruling last year that the arbitration clause in named plaintiff Amanda Kernahan's agreement with the businesses is unenforceable under the requirements established by the New Jersey Supreme Court's 2014 decision in Atalese v. U.S. Legal Services Group LP, which held that such provisions...

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