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NJ Appeals Court Invalidates Arbitration Provision for Failing to Specify Forum

NJ Appeals Court Invalidates Arbitration Provision for Failing to Specify Forum

Author: Joel N. KreizmanDate: December 21, 2018

In order to be enforceable, arbitration provisions must state where and how disputes will be resolved, according to the Appellate Division of the New Jersey Superior Court. In Flanzman v. Jenny Craig, Inc., the court invalidated the arbitration provision in an employment agreement between Jenny Craig, Inc. and a former employee because it failed to specify the forum for arbitrating claims.

The plaintiff, Marilyn Flanzman (Flanzman or Plaintiff), had worked for Jenny Craig, Inc. (Jenny Craig or Defendant) for 26 years as a weight loss counselor. Jenny Craig gradually reduced Plaintiff's full-time hours to only three hours per week. The substantial reduction in hours led to her termination. At the time of her termination, Flanzman was 82 years old.

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