New Jersey Says Non-Payment Of Arbitration Fees is Breach of Agreement
This post has been viewed 2,430 times.
The New Jersey Supreme Court refused to allow a respondent to benefit from its refusal to pay arbitration fees in Roach v. BM Motoring, LLC, 2017 WL 931430 (NJ March 9, 2017).
First, Ms. Jackson filed a demand for arbitration against a New Jersey car dealership with the AAA. The parties’ arbitration agreement required the dealership to “advance both party’s [sic] filing, service, administration, arbitrator, hearing or other fees, subject to reimbursement by decision of the arbitrator.” Nevertheless, the dealership refused to pay any filing fees or even respond to the claim and the AAA dismissed the case for non-payment. (Sing it: “Sorry Ms. Jackson, I am for real…”) Another buyer, Ms. Roach, also had her claim dismissed due to the dealership’s failure to comply with the AAA rules.
Ms. Jackson and Ms. Roach then filed a putative class action in New Jersey state court. The dealership had the nerve to move for dismissal, due to the arbitration clause. The trial court granted the dealership’s motion, and the high court reversed.
Tags:
