Defendant's Attorney: Timothy J. Brokin

Description: Newark, New Jersey consumer law lawyer represented the Plaintiff in a breach of warranty claim.

Plaintiff encountered issues with the vehicle two days after taking possession of it, when the check engine light turned on. Over the course of the next two weeks, the check engine light turned on twice again. Each time, plaintiff brought the car back to defendant. The third time, plaintiff told defendant he wanted a refund or a replacement vehicle, but the parties were unable to come to an agreement.

On August 6, 2023, plaintiff filed an arbitration demand, notice to produce and interrogatories with the AAA, along with the arbitration filing fee. The demand, which referenced the RISC arbitration agreement, claimed violations of the New Jersey Consumer Fraud Act, N.J.S.A. 56:8-1 to -229, New Jersey Truth-in-Consumer Contract, Warranty and Notice Act, N.J.S.A. 56:12-14 to -18, breach of contract, violation of the covenant of good faith and fair dealing, promissory estoppel, and lender liability as a holder in due course; and sought damages, common law and statutory remedies, attorneys' fees and refunds and cancellation of debts or contracts, among other relief.

Defendant did not respond to plaintiff's demand. In a September 13, 2023 letter, the AAA notified plaintiff's counsel and defendant it could not arbitrate the dispute because [p]rior to the filing of this arbitration [defendant] failed to comply with the AAA's policies regarding consumer claims, set forth in the Consumer Due Process Protocol ("Protocol") and the Consumer Arbitration Rules ("Consumer Rules"), including the Costs of Arbitration .... Accordingly, we must decline to administer this claim and any other claims between [defendant] and its consumers at this time.... According to R-1(d) of the Consumer Rules, should the AAA decline to administer an arbitration, either party may choose to submit its dispute to the appropriate court for resolution.

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Legal issue Did the defendant's failure to comply with administrative requirements for arbitration prevent the enforcement of the arbitration agreement in a consumer contract dispute?

Key Phrases Plaintiffs-Appellants. Retail installment contract. Arbitration agreement. Material breach. New Jersey Consumer Fraud Act.

Outcome: Affirmed in part; reversed and remanded in part.

Plaintiff's Experts:

Defendant's Experts:

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