Avoiding Disputes Over Who Decides Arbitrability in New Jersey
What happens when the other side in a dispute challenges the applicability of the underlying contract that contains an arbitration provision? Is it for the arbitrator or the court to decide the provision's applicability?
June 18, 2021 at 10:00 AM
6 minute read
Drafting an arbitration provision that complies with the standards articulated by the New Jersey Supreme Court in Atalese v. U.S. Legal Services Group, 219 N.J. 430 (2014), is a necessary first step to ensuring a New Jersey dispute is resolved through arbitration. But what happens when the other side in a dispute challenges the applicability of the underlying contract that contains such an arbitration provision? Is it for the arbitrator or the court to decide the provision's applicability? The answer: it depends, absent a well-drafted arbitration provision that can eliminate this uncertainty and cost.
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