Faegre Drinker Helps Secure Favorable Ruling in New Jersey Supreme Court Class Action Case

Faegre Drinker partner Jeff Jacobson, co-chair of the firm’s class actions team, successfully argued to the New Jersey Supreme Court that stand-alone class action waivers in consumer contracts, not tied to arbitration agreements, can be enforced unless they fail New Jersey’s typical test for unconscionability. On July 10, 2024, the New Jersey Supreme Court reversed an Appellate Division decision that had held stand-alone class action waivers to be per se unconscionable. The Supreme Court found a stand-alone class action waiver in an apartment building’s standard lease form to be fully enforceable against a lessor and ordered the dismissal of the lessor’s putative class claims.  

Jacobson briefed and argued the cause amicus curiae for the New Jersey Civil Justice Institute and was supported by associate Jennifer Chawla on the brief.

This win gives companies that do business in New Jersey another option to consider to mitigate the risks of class actions.

See New Jersey Law Journal and Bloomberg Law’s coverage of the case and verdict for more details.