Arbitration Provision Bounced Again, Even After Kindred Nursing Decision.

by: Peter J. Gallagher (@pjsgallagher) (LinkedIn)

Arbitration (pd)As readers of this blog know, arbitration provisions in consumer contracts are difficult to enforce in New Jersey. (Click here or here for a refresher.) There was some belief that the U.S. Supreme Court's recent decision in Kindred Nursing Centers Ltd. P'ship v. Clark might change this, but it does not appear, at least not yet, that it has. In a recent case, Defina v. Go Ahead and Jump 1, LLC d/b/a Sky Zone Indoor Trampoline Park, the Appellate Division was asked to revisit, in light of Kindred Nursing, its prior decision refusing to enforce an arbitration provision in a contract between a trampoline park and one of its customers. The Appellate Division did so, but affirmed its prior decision, holding that Kindred Nursing did not require New Jersey courts to change the manner in which they approach arbitration provisions.

I wrote about Defina in its first go-around with the Appellate Division — Bounce Around The (Court)Room: Trampoline Park's Arbitration Provision Deemed Unenforceable. The underlying facts of the case are unfortunate. A child fractured his ankle while playing "Ultimate Dodgeball" at a trampoline park. Before entering the facility, the child's father signed a document entitled, "Participation Agreement, Release and Assumption of Risk." The document contained an arbitration provision, which provided: 

If there are any disputes regarding this agreement, I on behalf of myself and/or my child(ren) hereby waive any right I and/or my child(ren) may have to a trial and agree that such dispute shall be brought within one year of the date of this Agreement and will be determined by binding arbitration before one arbitrator to be administered by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures. I further agree that the arbitration will take place solely in the state of Texas and that the substantive law of Texas shall apply.

Notwithstanding this provision, the child's parents sued the trampoline park in state court, alleging tort claims for simple negligence and gross negligence, and statutory claims for alleged violations of the Consumer Fraud Act and the Truth in Consumer Contract, Warranty and Notice Act. 

Continue reading “Arbitration Provision Bounced Again, Even After Kindred Nursing Decision.”

Field of Bad Dreams?

by:  Peter J. Gallagher (@pjsgallagher) (LinkedIn)

Field of Dreams (PD)
In Field of Dreams, James Earl Jones's character makes a famous speech about baseball being "the one constant through all the years." While "America has rolled by like an army of steamrollers," and has been "erased like a blackboard, rebuilt, and erased again . . . baseball has marked the time." In D.W. v. L.W., the Law Division started its opinion with a less poetic, but more ominous baseball-related statement: "This case involves separated parents, young children, and Little League baseball." If you have been to more than a few youth sporting events, you can probably guess what was at issue in the case. Nonetheless, the court's opinion is a good read as it is part homage to little league baseball and part framework for how parents should (and should not) behave at youth sporting events.

In D.W., a husband and wife's child played in a "coach-pitch league." Although they were separated, they agreed that they could both attend the games as long as the husband stayed at least 50 feet from the wife. A few months later, the husband filed a follow-up motion to attend their son's football games. The wife opposed the motion and further asked the court to ban the husband from continuing to attend their son's baseball games because he had "acted inappropriately at the baseball field, in a publicly embarrassing manner, by making negative and demeaning comments about the team coach's baseball-related decisions, within earshot of the coach's wife." She further claimed that the couple's daughter later started repeating the husband's comments, and that the husband had posted similar commentary about the coach on Facebook. The husband denied that he acted inappropriately, and further claimed that it was his wife "who, at least previously, did not approve of the coach's baseball-related abilities." (As an aside, how many "baseball-related decisions" does a coach really make in a 7-year-old's coach-pitch game?)

The court began its opinion by emphasizing the importance of youth sports in America. More than 40 years ago, the Appellate Division recognized that little league baseball was a "piece of public Americana." It has been almost universally praised as a "social and cultural tool for positive childhood development and inclusion." According to the court, the benefits of little league baseball go beyond "simply teaching children to hit, field and catch," but include developing "good citizenship, sportsmanship, and maturity of character." In fact, the court took judicial notice that "the results of particular Little League games are not nearly as significant as the underlying goal of developing a child's ongoing personal character in a positive fashion."

 

Continue reading “Field of Bad Dreams?”

We got next! Injured during a pick-up game, no expert needed; injured during a league game, get an expert.

by:  Peter J. Gallagher (@pjsgallagher) (LinkedIn)

Soccer (pd)Continuing with a recent theme of people getting injured playing sports and then suing the people who allegedly injured them, we now have Greaves v. Inline Skating Club of America, LLC. In Greaves, plaintiff was the goalie on a soccer team. He was injured during a formal, league-sponsored game with referees (this will be important later on). The Appellate Division described the underlying events as follows:

[Plaintiff] was severely injured while playing soccer as goalie for "Kiss the Baby" team. At the time, plaintiff was in the process of picking up the ball inside the goalie  box.  He had the ball for approximate[ly]  [five] to [ten] seconds when he was tackled/kicked and/or pushed to the ground in a violent manner by .  .  .  a player on the  opposing soccer team. Plaintiff struck his head on the hard surface losing brief [sic] consciousness. At the same time and place, the game was being refereed by [the referee] who was working as an agent and/or employee of [defendant].

Plaintiff sued the player who made contact with him, the referee, and the facility that ran the league. Plaintiff never served the player or the referee with the summons and complaint, however, so they were dismissed and the lawsuit proceeded against the facility alone. Plaintiff alleged that the facility was "responsible for maintaining a safe facility and failed to supervise and provide security at the facility." Stated differently, plaintiff alleged that the referee's failure to officiate the game properly caused his injuries.

Plaintiff never produced an expert report during the discovery period. After receiving an adverse decision from an arbitrator during mandatory, pre-trial arbitration, plaintiff moved for trial de novo and served a liability expert report. Defendant objected, forcing plaintiff to move to reopen discovery so that he could amend his discovery responses to identify his expert and serve the expert report. The motion was denied.  Defendant then moved for summary judgment, which was also denied because the trial court held there were issues of fact regarding the role of the referee and whether defendant breached any duty it may have had to plaintiff.

Continue reading “We got next! Injured during a pick-up game, no expert needed; injured during a league game, get an expert.”

Bounce Around The (Court)Room: Trampoline Park’s Arbitration Provision Deemed Unenforceable

by:  Peter J. Gallagher (@pjsgallagher) (LinkedIn)

Sky zone (pd)In the interest of full disclosure, I have taken my kids to the Sky Zone Trampoline Park near our home and we have always had a great time. For those who have never been, these types of places are full of trampolines, but not your parents' trampolines (assuming your parents had trampolines and your experience with them was slightly better than the children of Springfield). They are huge facilities where you can "free jump," play dodge ball on trampolines, use trampolines to dunk a basketball, jump off trampolines into foam pits, etc. As you might expect, before you are allowed to jump, you need to sign a waiver, usually electronically either before you get to the facility or when you get there. I have done this on behalf of myself and my kids and of course, being a lawyer, read each word carefully as my kids were excitedly asking me, on a seemingly endless loop, when we could start jumping. In a recent decision, Defina v. Go Ahead and Jump 1, LLC d/b/a Sky Zone Indoor Trampoline Park, the Appellate Division considered whether the arbitration provision contained in this waiver was enforceable. It ruled that it was not, which is perhaps not surprising given the recent trend in New Jersey courts regarding the enforceability of arbitration agreements. (I wrote about this trend here and here.)

In Defina, plaintiff was a minor who, through her parents, sued Sky Zone for injuries allegedly suffered at the facility. Before using the facility, plaintiff's father signed a "Participation Agreement, Release and Assumption of Risk." Among other things, the agreement required parties to release, discharge, and hold Sky Zone harmless for  any claims arising out of Sky Zone's "ordinary negligence." The waiver did not preclude lawsuits arising out of Sky Zone's alleged gross negligence or willful and wanton misconduct, but it did require that those claims be arbitrated pursuant to a separate arbitration provision, which provided:

If  there  are  any  disputes  regarding  this agreement,  I  on  behalf  of  myself  and/or  my child(ren)  hereby  waive  any  right  I  and/or my child(ren) may have to a trial and agree that  such  dispute  shall  be brought  within one  year  of  the  date  of  this  Agreement  and will  be  determined  by  binding  arbitration before  one  arbitrator  to  be  administered  by JAMS    pursuant    to    its    Comprehensive Arbitration  Rules  and  Procedures.  I  further agree  that  the  arbitration  will take  place solely  in  the  state  of  Texas  and  that  the substantive  law  of  Texas  shall  apply.

The arbitration provision also provided that anyone who ignored the provision and sued in court would be liable to Sky Zone for $5,000 in liquidated damages. Finally, the agreement also contained a provision, in bold type, which provided that, by signing the agreement, an individual "may be found by a court of law to have waived [his or her] right to maintain a lawsuit against [Sky Zone]."

Continue reading “Bounce Around The (Court)Room: Trampoline Park’s Arbitration Provision Deemed Unenforceable”