In a published opinion, the New Jersey Appellate Division has held that the test set forth by the New Jersey Supreme Court in Cole v. Jersey City Medical Center for arbitration clauses should also be applied to waiver considerations in the context of forum selection clauses.

According to the opinion, plaintiffs Drs. Daro M. Largoza and Maria P. Largoza purchased a residential health care facility in Newton from defendants Fe M. Caliolio, FKM Real Estate Holdings, and Happy Valley Manor. The property was purchased for $2.5 million, along with the business assets for $150,000. Financing was procured when defendants Roland David and Caliolio referred the plaintiffs to defendant Celtic Bank.