Supreme Court of New Jersey

Jaliyah Muhammad, on Her Own Behalf and All Others Similarly Situated, Plaintiff-Appellant v. County Bank of…

August 9, 2006189 N.J. 1

Summary

The Supreme Court of New Jersey held that the class‑arbitration waiver in the consumer loan contracts was unconscionable and therefore unenforceable, but that the remainder of the arbitration agreement was severable and enforceable. The Court reversed the Appellate Division and remanded for further proceedings. Justice Rivera‑Soto concurred in part and dissented in part, agreeing with the enforceability of the arbitration clause but disagreeing with the finding that the class‑arbitration waiver is unconscionable.