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Sign on Dotted Line: Arbitration Agreement Enforceability Against Predecessor Company

June 29, 2021

Via: HR Hero
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The New Jersey Appellate Division recently vacated a September 2020 trial court order dismissing a former employee’s lawsuit and compelling him to arbitrate his Conscientious Employee Protection Act (CEPA) claims against his former employer’s predecessor. In so doing, the appellate court found the trial court must first determine whether the arbitration agreement was binding on the former vice president and, if so, whether his former employer was in fact the agreement’s assignee.

Facts

Robert Hampton began serving as the vice president of business development at MS Electronics/MSE Corporate Security, Inc. (MSE), on February 16, 2016. Before beginning his employment, he signed various agreements, including an arbitration agreement prepared by the employer. The agreement’s arbitration and equitable relief clause provided:

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