The National Arbitration Forum Blog

A federal district court in New Jersey has ruled that the Federal Arbitration Act (FAA) preempts a New Jersey Supreme Court decision holding that a class waiver, if it functions as an exculpatory clause, renders an arbitration agreement unconscionable and therefore unenforceable under New Jersey law.

In Litman v. Cellco Partnership, No. 07-CV-4886, 2008 WL 4507573 (D.N.J. Sept. 29, 2008), Litman and another Verizon customer (collectively, Customers) filed a class action lawsuit alleging that Verizon, their wireless service provider, had unlawfully charged them an administrative fee totaling less than a $1 per month.

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