Liz Kramer was quoted in a recent Bloomberg BNA story on a New Jersey court's decision that the arbitration clause in an enrollment agreement signed by students of a for-profit college was unenforceable.
The judge ruled that the clause failed because it did not "explain in some broader or general way that arbitration is a substitute for the right to seek relief in our court system."
The plaintiffs' claims against the college will proceed in court.
One of the questions in this case is whether an arbitrator, and not a court, should have decided in the first instance if the parties agreed to arbitrate, Liz explained. State courts are avoiding having their state laws preempted by the Federal Arbitration Act by saying these are issues of contract formation, which is governed by state law, Kramer said.
Liz is a partner in the firm's Minneapolis office and a frequent blogger and lecturer on arbitration topics in Minnesota and across the U.S. About half of her cases are in arbitration. She represents both plaintiffs and defendants in a variety of construction and complex business disputes and routinely teaches CLEs seminars on arbitration topics. She also blogs about the most recent developments in the law at www.arbitrationnation.com.
Read the full story: "For-Profit College Decision Makes End-Run Around Arbitration.