Court Reforms Contract To Uphold Arbitration Provision

In Essam Arafa v. Health Express Corporation (A-6-19) (083174) and Gloria Colon v. Strategic Delivery Solutions, LLC (A-7-19) (083154), the New Jersey Supreme Court posed the question as follows:

“These appeals involve arbitration agreements in contracts for employment that,
plaintiffs argue, fall within the ‘exemption clause’ of the Federal Arbitration Act (FAA),
9 U.S.C. § 1 (section 1). The question posed in both cases is whether the disputed
arbitration agreements would be enforceable under the New Jersey Arbitration Act
(NJAA), N.J.S.A. 2A:23B-1 to -36, if they are exempt from the FAA.”

Answering the question in the affirmative, the court relied on a reformation provision in the contract to make the New Jersey Arbitration Act applicable even though the contractually mandated Federal Arbitration Act did not cover the circumstances at issue.

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