A New Jersey appeals court held Sept. 8 that an arbitration clause should be enforced in a state Consumer Fraud Act case, even though it conflicts with the statutory provision for treble damages.

The two-judge panel in Morgan v. Sanford Brown Institute ruled that the problematic portion of the arbitration agreement could be severed, reversing a lower court judge who had refused to compel arbitration because of the clash between the agreement and the remedies available under the Consumer Fraud Act.

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