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Too Poor for Arbitration? Employee’s Financial Situation Must Be Considered

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Arbitration agreements can be a great way to manage the risk and expense of litigation. However, you must ensure that your arbitration agreement is enforceable.

The Appellate Division, First Department in New York, recently reversed a lower court’s decision and sent the case back for further proceedings out of a concern that the employee lacked the financial means to arbitrate the dispute. The Appellate Division held that the lower court must consider the employee’s financial circumstances and the costs of arbitration before compelling him to submit to arbitration.


“Marcus” sued his employer, Kent Security of New York, Inc., for

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