Atalese v. U.S. Legal Services Group, L.P.

99 A.3d 306, 219 N.J. 430 (2014)

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Atalese v. U.S. Legal Services Group, L.P.

New Jersey Superior Court
99 A.3d 306, 219 N.J. 430 (2014)

Facts

U.S. Legal Services Group, L.P. (USLSG) (defendant) provided debt-adjustment services for a consumer, Patricia Atalese (plaintiff), pursuant to a contract. The contract between USLSG and Atalese provided that any disputes arising from the contract would be resolved by arbitration. The arbitration clause did not contain any language indicating that, by agreeing to arbitration, the parties waived the right to sue in court. The contract did not explain arbitration or the distinction between arbitration and court proceedings. After a dispute arose, Atalese filed suit against USLSG, claiming that USLSG had violated two consumer-protection statutes. USLSG successfully motioned the trial court to compel arbitration, and Atalese’s complaint was dismissed. Atalese appealed. The intermediate appellate court affirmed the trial court, concluding that (1) the absence of express language in the contract that the right to sue was being waived did not preclude enforcement of the arbitration clause, because the contract gave Atalese reasonable notice of the arbitration requirement and (2) a reasonable person entering into the contract would have understood that arbitration was the exclusive method of resolving any disputes. Atalese appealed.

Rule of Law

Issue

Holding and Reasoning (Albin, J.)

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