Again, the courts have misunderstood and misapplied the Supreme Court’s consumer-protection decision in Atalese v. U.S. Legal Servs. Grp., L.P. In Epstein v. Wilentz, Goldman & Spitzer, P.A., A-1157-14T1, an unpublished Appellate Division case decided Jan. 22, 2016, the court affirmed the denial of a motion to enforce an arbitration clause in the firm’s shareholders’ agreement that required AAA arbitration of “[a]ny controversy or claim arising out of, or relating to this Agreement or the breach thereof.” Plaintiffs asserted a CEPA claim when they were fired, claiming that they opposed an unethical and inadequate settlement of a pending case.
Plaintiffs claimed that the courts should determine whether the agreement required arbitration. Defendant, citing the AAA rules, claimed an arbitrator should make this decision. The trial judge found factual issues and denied the motion, and the Appellate Division agreed.
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