New Jersey Appellate Decision Refuses to Enforce Arbitration Agreement

In an April 25, 2000 opinion, the Superior Court of New Jersey, Appellate Division refused to enforce an arbitration agreement in the context of an employee’s claim of discrimination under the New Jersey Law Against Discrimination (“LAD”), N.J.S.A. 10:5-1 et seq. Quigley v. KPMG Peat Marwick, LLP, No. A-2900-98T1, 2000 WL 485825 (N.J. Super. Ct. App. Div. Apr. 25, 2000). Although the appellate court generally reaffirmed the permissibility of requiring non-union employees to submit their discrimination claims to binding arbitration, the court refused to compel arbitration on the specific facts presented in the case on terms that will have wide-ranging implications upon the enforceability of arbitration agreements in New Jersey.

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