News & Noteworthy

Authored - NJ Contract Law Update - Multiplicity Of Litigation/Arbitration Is No Basis To Preclude Arbitration
SEPTEMBER 13, 2013 | Windels Marx - Commercial Litigation

In Woodbridge Center Property, LLC v. AMP Food Holdings, LLC, ___ N.J.Super. ___, 2013 WL 3064587 (App.Div. June 20, 2013), the trial Court had ruled commonsensically that it was inefficient for litigation and arbitration to proceed at the same time. The Appellate Division reversed, explaining that arbitration law trumps what might otherwise seem logical in this area, and requires that an arbitration agreement be enforced even if to do so would be inefficient.

A practice note: neither court focused on the possibility of stays pending arbitration; but that possibility is always lurking in any situation involving both arbitration and litigation.

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Clark Alpert is the author of Guide to New Jersey Contract Law, published by the New Jersey Institute for Continuing Legal Education, originally published in 2007 and updated in November 2011. His updates on New Jersey contract law are based in recent issues and practical methods for addressing similar situations in your practice or business. They are not intended to serve as legal advice. Clark welcomes your questions and comments.

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