ESTATE OF ANNA RUSZALA BY MARIE MIZERAK, (Executrix)
V. BROOKDALE LIVING COMMUNITIES, ET AL.
IDA AZZARO, As Proposed Administrator Ad Prosequendum
for the Estate of Pasquale Azzaro V. BROOKDALE LIVING
COMMUNITIES, ET AL.
A-4403-08T1/A-4404-08T1 08-10-10 (consolidated)
In these consolidated appeals we must decide whether § 2 of
the Federal Arbitration Act (FAA), 9 U.S.C.A. § 2, preempts the
public policy expressed in N.J.S.A. 30:13-8.1. We reverse the
court's finding that the FAA is inapplicable. We affirm,
however, the trial court's determination that these residency
agreements were contracts of adhesion. Under the doctrine of
substantive unconscionability, we strike as unenforceable the
provisions in the arbitration clause that restrict discovery,
limit compensation for non-economic damages, and outright
preclude punitive damages. Finally, we remand the Azzaro matter
to the trial court to determine whether a valid contract was
formed between the parties.
