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...
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