Reid v. DCH Auto Group, Inc., Docket No. A-2349-17T2, (App. Div., Nov. 8, 2018)

Arbitration agreement included as part of job application did not compel arbitration for claim against inter-related company to employer.

The plaintiff worked for three different auto dealerships that were set up as separate corporate entities even though they were commonly owned. As part of his application with the initial dealership, he agreed to submit any employment claim to arbitration. After being terminated from the last dealership where he worked, he filed a wrongful termination claim. The dealership sought to compel arbitration based upon the language of the original application. In rejecting the request to compel arbitration, the Appellate Division held that the language of the original application applied solely to the original employment and that the successive dealerships, while affiliated, were set up as separate corporations and could not take advantage of the provision.

 

Case Law Alerts, 1st Quarter, January 2019

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