Supreme Court of New Jersey
Gloria Colon v. Strategic Delivery Solutions, LLC (083154) (Union County & Statewide)
July 14, 2020
Summary
The Supreme Court held that the New Jersey Arbitration Act (NJAA) can apply to arbitration agreements even when the parties are exempt from the Federal Arbitration Act (FAA) under its section 1 exemption, and therefore the arbitration agreements in both Colon and Arafa are enforceable. The Court affirmed the Appellate Division’s decision in Colon and remanded for a factual determination of interstate‑commerce status, while it reversed the Appellate Division’s decision in Arafa and ordered enforcement under the NJAA. Justice Albin concurred in part and dissented in part, arguing that the class‑waiver provisions are unconscionable.