In a published opinion issued Wednesday, the New Jersey Appellate Division held that the requirement imposed by the state Supreme Court in Atalese v. U.S. Legal Services Group—that an enforceable arbitration provision must contain an express waiver of the right to seek relief in a court of law—was not intended to apply to sophisticated commercial litigants with comparatively equal bargaining power.

The plaintiff in the underlying case, Passaic County, contracted with the defendant, Horizon Healthcare Services, to manage a self-funded benefit plan from 2002 through the end of 2019. In 2021, the county filed this action and claimed that Horizon breached its contract by failing to implement certain modified reimbursement rates, among other claims.