NJ Appellate Court Upholds Arbitration Agreement in Wrongful Termination Case

HNWBusiness Law

By Fredrick P. Niemann, Esq., a NJ Arbitration Attorney

With alternative dispute resolution becoming more and more popular, many employers and employees are electing to sign agreements mandating parties to bring certain disputes to a particular forum to be resolved. Arbitration is often the choice of these employers and employees, as it typically presents a more time and cost efficient forum than the NJ Courts. When employers and employees sign an arbitration agreement, this is considered a legally binding contract. Neither party is permitted to change their mind down the road and bring a dispute that is covered in the agreement to a different forum. NJ Courts will uphold these agreements and will refuse to hear such cases involving disputes that parties have agreed to resolve via arbitration.

A recent NJ Appellate Court case involved an employment dispute and a question as to what forum would hear the case. An employee filed a claim in NJ Court alleging his employer terminated him unlawfully as retaliation for discrimination allegations, a violation of the New Jersey Law Against Discrimination. The defendant/employer immediately moved to have the Court dismiss the case, citing an arbitration agreement between the parties. After the NJ Trial Court denied this motion, the defendant appealed to the NJ Appellate Court. The Appellate Court ruled in favor of the defendant and dismissed the case, compelling the plaintiff to bring the case to arbitration if he wanted it resolved. The Appellate Court stated that the arbitration agreement between the parties unambiguously covered disputes over wrongful termination and clearly established that both parties to the agreement waived their rights to bring these disputes to Court, with arbitration being the sole forum allowed to resolve disputes. The arbitration agreement covered not only disputes arising out of the employment agreement between the parties, but all disputes between the parties in general.

Contact me personally to discuss your NJ Arbitration matter. I am easy to talk to, very approachable and can offer you practical, legal ways to handle your concerns. You can reach me toll free at (855) 376-5291 or email me at fniemann@hnlawfirm.com/.

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