Are You Heading to Arbitration in New Jersey?
Be Prepared for Arbitration Hearings and Disputes!
What exactly is arbitration, and how should you approach it?
Arbitration cases are exploding in New Jersey and across the country. The reasons are simple. More and more companies, employers, service providers, consumers, insurance companies, and contractors are placing mandatory arbitration clauses in their contracts. The courts here and in other states are enforcing these mandatory arbitration clauses to reduce the backlog of cases pending before them.
An experienced arbitration attorney can help guide you through the differences between arbitration practices and procedures and traditional court proceedings. Why is that important to you? Because arbitration is different than litigation in many ways, an experienced arbitration lawyer knows how to strategize your case in a way other lawyers do not. Because unfavorable arbitration awards are difficult to reverse on appeal, I urge you to contact us to discuss your case. At Hanlon Niemann & Wright, you will find our attorneys and staff to be attentive, diligent, and focused on winning your case and providing sound advice based on our 40+ years of experience.
TESTIMONIAL
I consulted with Mr. Niemann following a recommendation from an associate in Brick, New Jersey. I was told that Mr. Niemann would be an excellent person to discuss an investment opportunity, which was represented to me as very profitable. Mr. Niemann met with me promptly and reviewed the information provided by the promoter. After having considered the promotional information, Mr. Niemann cautioned me against the investment. He requested that a four-way conference be set up so he could meet face-to-face with the promoter of this opportunity. After several hours of intense questioning and discussion, Mr. Niemann concluded the meeting courteously and professionally. He immediately told me not to invest a single penny in this scam, as I would lose my investment. At the time, I was looking to invest several hundred thousand dollars. Thank God I listened to Mr. Niemann.
Since our meeting, I have learned that the deal was, in fact, a scam and that I would have lost my entire investment. The straight-talking, highly investigative nature of Mr. Niemann’s questioning and insights, coupled with his significant past business experience, was invaluable to me.
Scott Buongiovanni Freehold, New Jersey
Arbitration Law in New Jersey
Let me give you some vocabulary terms and general background first.
Arbitration has been defined as the “voluntary referral of a dispute to … an arbitrator or arbitrators chosen by the parties who agree the decision will be final and binding upon them.” Arbitration is an agreed-upon substitution of the legal system with an alternative decision-maker(s).
Arbitration and alternative dispute resolution (“ADR”) are today commonly used to resolve disputes. Litigation in the traditional courtroom setting can take many years to resolve, and the costs of litigation are high. Parties to disputes have created alternative venues for the courts. Sponsors of mandatory arbitration as a means of dispute resolution are often afraid of jurors and hostile judges.
The law on arbitration can be found in the New Jersey Arbitration Act and in New Jersey case law interpreting it. Since arbitration is contractual, the courts will enforce a mandatory arbitration clause in a contract. In fact, there is a specific statute in New Jersey that makes a mandatory arbitration clause in a contract enforceable. There is virtually no way around it. This statute (NJSA 2A:24-1) states:
“A provision in a written contract to settle by arbitration a controversy, whether the controversy arises out of contract or otherwise, shall be valid and enforceable, except as may otherwise exist at law or in equity.”
The New Jersey arbitration law provides further that:
“Two or more persons may agree in writing to submit to arbitration a controversy existing between them, whether the controversy arises out of a contract or the refusal to perform all or a part of a contract or any other matter.” A careful reading of the statute discloses that many other non-contractual disputes can and will be subject to mandatory arbitration.
By mandating arbitration to address future disputes in a contract or other legal relationship, the parties can, by agreement, limit or expand the scope of the arbitration proceeding. Still, they are bound to go to arbitration under their agreement. Our courts will not rewrite a contract between the parties to limit or broaden the scope of arbitration, or otherwise make it fairer, more efficient, or more binding.
Deciding Whether a Dispute is Subject to Arbitration in New Jersey
Perhaps your agreement is unclear whether your disagreement or issue is subject to arbitration. Maybe you read the contract or governing document in a way that leaves you not bound to arbitrate your matter. If there is a dispute over whether a particular issue is subject to arbitration under a contract, that dispute must generally be resolved by the courts of New Jersey, subject to the terms of the agreement. The courts in NJ will read and interpret the arbitration clause in the contract and determine whether the claim falls within its scope. However, the court will not initially rule on the merits of the dispute; it will only determine whether the case is subject to mandatory arbitration.
Is arbitration in your future? Not sure? Make it easier for yourself.
Contact Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, an experienced arbitration lawyer in New Jersey, at (732) 863-9900, or email him at fniemann@hnlawfirm.com to schedule a consultation about your arbitration matter. He welcomes your calls and inquiries, and you’ll find him very approachable and easy to talk to. Fred Niemann has been approved as a New Jersey Mediator by the NJ Supreme Court.