Q: Can I file a smalls claims suit in NJ even if the home warranty contract contains an arbitration clause?
15. Arbitration. Any disputes resulting from this Agreement or any dispute resulting to Select's home service contract service
shall be construed and enforced under the laws of the State of New Jersey. You hereby submit to the jurisdiction of the courts
of New Jersey and waive any objection to venue with respect to actions brought in such courts. Except where prohibited, you
agree that any and all disputes, claims and causes of action arising out of or connected with this Agreement shall be resolved
individually, without resort to any form of class action, and exclusively by the American Arbitration Association in the State of
New Jersey. Controversies or claims shall be submitted to arbitration regardless of the theory under which they arise,
including without limitation contract, tort, common law, statutory, or regulatory duties or liability.
A: Arbitration clauses are matters of contract. In your case it's a "Home Warranty Contract". If the conduct of the party wanting to enforce the arbitration clause against you amounts to a material breach, then the court won't enforce the arbitration clause. A good remedy for a breach of contract is fraud. If you can rightfully allege that you were defrauded then you should be allowed to file your small claim suit.
Morris Leo Greb agrees with this answer
A: In addition, an argument may be raised that the contract was a contract of adhesion, i.e. therfe was ability to negotiate the terms.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
