Amanda Kernahan filed a consumer fraud act class action against Home Warranty Administrator of Florida, Inc. and another company providing for care of home appliances and systems. The Appellate Division upheld the denial of summary judgment and a motion to compel arbitration. The courts found the waiver of the right to sue ineffective.

The plaintiff alleged that “a section of the Agreement located on the last page entitled 'MEDIATION' failed to advise her that she was waiving her right to file a court action and have her claims decided by a jury; instead she was required to present her claims in an arbitration, at which the remedies of treble damages, punitive damages, attorney's fees and costs were not available.”