NJ Luxury Condo Investors Beat Arbitration Provision in Court

An arbitration provision placed in more than 600 pages of investment prospectus documentation isn’t enough to kick cases out of open court, a New Jersey appeals panel ruled Tuesday.

Including an arbitration provision in the 663-page public offering statement for a nearly $900,000 Jersey City condo investment can’t satisfy New Jersey’s law requiring explicit contract waivers of a right to jury, the Superior Court Appellate Division ruled unanimously. While the parties’ subscription and purchase agreement did have an arbitration clause, it wasn’t specific enough about waiver rights to meet the state’s high standard for a waiver of trial rights, ...