NJ Supreme Court Vacates Spill Act Arbitration Decision

August 5, 2019
Shelby Hancock
MGKF Litigation Blog

On Monday, July 29, 2019, the New Jersey Supreme Court held that an arbitrator’s decision dismissing a property owner’s claim for coverage under the Spill Compensation Fund was arbitrary and capricious because the decision was procedurally and substantively flawed. US Masters Residential Property (USA) Fund v. N.J. Dept. of Envt’l Prot., __ A.3d __, 2019 WL 3402917 (N.J. 2019) (slip opn.). The Court’s 4-3 opinion suggests that despite the deference afforded arbitrators in these cases, they remain subject to a searching judicial review.

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