Scarinci Hollenbeck Successful for Boonton BOE in Arbitration Dispute

Scarinci Hollenbeck Successful for Boonton BOE in Arbitration Dispute

Lyndhurst, NJ – June 26, 2019 – Scarinci Hollenbeck successfully enjoined an arbitration on behalf of their client, the Boonton Board of Education. The case stemmed from a fire that broke out at the school on March 8, 2018. Defendant AllRisk, Inc. was retained to perform cleaning services. A dispute broke out between the parties over the cost. AllRisk filed for arbitration directly with the American Arbitration Association. The Board then filed an Order to Show Cause in Morris County Superior Court to enjoin the arbitration proceeding.

The Board disputed that the parties entered into an arbitration agreement. Rather, the Board pointed out that it added material terms to AllRisk’s form agreement and sent it to AllRisk. Instead of accepting that language, AllRisk crossed it out and shelved the agreement. AllRisk only notified the Board about the change after the parties’ dispute over the cost arose.

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In enjoining the arbitration, the court agreed that there was no contract between the parties due to AllRisk’s rejection of the Board’s counteroffer. The court also rejected AllRisk’s contention that an arbitrator should decide whether the parties entered into a contract, finding that its arbitration clause did not contain a delegation clause.

Scarinci Hollenbeck attorneys Brent “Giles” Davis and Monica E. de los Rios represented the Boonton Board of Education in this matter.