Court Agreed With Chatarpaul Law and Invalided Ally Bank’s Arbitration Agreement

In Thomas v. The Luxury Haus, Inc. and Ally Financial, Inc., the plaintiff filed a lawsuit against an automobile dealer and the finance company (Ally Financial) alleging violation of New Jersey Consumer Fraud Act in connection with the sale and financing of a motor vehicle.

The dealership filed a pre-Answer Motion to Dismiss plaintiff’s complaint and compel arbitration based on several arbitration agreements, one of which was Ally Bank’s arbitration agreement.

We filed an opposition to the motion arguing that there were three (3) different arbitration agreements -one unsigned, another containing a forged signature, and the other was invalid as the plaintiff signed the agreement before she was provided with the finance agreement which was subject to the arbitration agreement.

The Court agreed with Chatarpaul Law and denied arbitration stating that “viewed in their totality, the arbitration provisions scattered among the RIC, the Addendum, and the SAD are too plagued with confusing terms and inconsistencies to put a reasonable consumer on fair notice of their intended meaning…”