Case Alert- New Jersey Construction Law

Recent case law has further addressed what constitutes an enforceable ADR provision in New Jersey. In Lahoud v. Anthony & Sylvan Corp., 481 N.J. Super. 29 (App. Div. 2025), the Court evaluated an ADR provision which required the parties to resolve any and all claims arising from or related to the agreement through arbitration but allowed the contractor to litigate any monetary damages. The Court, in determining the provision was unconscionable and unenforceable, held that the provision was grossly unbalanced in favor of the contractor by creating an exception to arbitration for only the contractor’s benefit. Tesser & Cohen can review your arbitration provisions to ensure that they comply with this recent Appellate Court decision.