DAVID JOHNSON VS. SKY ZONE INDOOR TRAMPOLINE PARK IN SPRINGFIELD (L-5446-20, ESSEX COUNTY AND STATEWIDE)
A-2489-20
| N.J. Super. Ct. App. Div. | Dec 6, 2021Background
- Ten-year-old David Johnson was injured at a Sky Zone trampoline park after his mother, Shalonda Johnson, signed an electronic "Participation Agreement, Release and Assumption of Risk" on a kiosk (July 14, 2018).
- The Agreement included exculpatory language and an arbitration clause requiring disputes to be decided by JAMS arbitration, waiving jury trial rights, and containing a one-year filing window for adults (minor governed by statute of limitations). It also contained a severability/merger clause and an acknowledgment that the patron read and consented.
- Plaintiffs sued for personal injuries on August 13, 2020. Defendants moved to compel arbitration; the Law Division granted the motion and dismissed the complaint with prejudice on March 24, 2021.
- Plaintiffs appealed, arguing the arbitration clause was ambiguous, unenforceable against a minor’s claims (relying on Hojnowski), procedurally and substantively unconscionable, and invalid because JAMS was unavailable.
- The Appellate Division affirmed enforcement of the arbitration clause, rejected plaintiffs’ arguments, vacated the dismissal with prejudice, and remanded with instructions to stay court proceedings pending arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitration clause gave clear notice of waiver of judicial forum and jury | The clause is ambiguous, uses confusing formatting and technical language; therefore no clear waiver | Mother checked/entered identifying information at kiosk, language states waiver of jury/right to sue—clear assent | Enforceable: language sufficiently clear to notify waiver of jury and suit rights |
| Whether a parent may bind a minor to arbitration of tort claims | Hojnowski bars parent from releasing certain claims of a minor at commercial recreation facility | Parent signed; Hojnowski does not prohibit arbitration of a minor's claims | Enforceable: arbitration of minor’s claims is consistent with NJ law; parental signature sufficed |
| Whether designation of JAMS (unavailable) voids the arbitration clause | JAMS unavailability renders arbitration provision impossible/unenforceable | Severability clause + NJAA/Federal Arbitration Act permit court-appointed arbitrator or defaults | Enforceable: designation of JAMS not essential; court/NJAA/Federal Act provide alternatives |
| Whether the clause is procedurally/substantively unconscionable (adhesion contract) | Electronic kiosk, time pressure, and adhesion form render clause unconscionable | No showing under Delta Funding factors to invalidate clause | Enforceable: plaintiffs did not carry burden to show unconscionability; clause survives |
Key Cases Cited
- Flanzman v. Jenny Craig, Inc., 244 N.J. 119 (2020) (arbitral institution designation not indispensable; NJAA/Federal Arbitration Act supply default mechanisms)
- Hojnowski v. Vans Skate Park, 187 N.J. 323 (2006) (arbitration of minor’s claims is consistent with NJ law concerning children’s rights)
- Atalese v. U.S. Legal Servs. Grp., L.P., 219 N.J. 430 (2014) (clarity is required to show consumer knowingly waives statutory/constitutional rights)
- Kernahan v. Home Warranty Adm'r of Fla., Inc., 236 N.J. 301 (2019) (whether parties agreed to arbitrate is a question of law assessed under state contract principles)
- Delta Funding Corp. v. Harris, 189 N.J. 28 (2006) (four-factor test for evaluating unconscionability in adhesion contracts)
- Arafa v. Health Express Corp., 243 N.J. 147 (2020) (severability clauses indicate intent that valid parts survive excision of invalid terms)
- GMAC v. Pittella, 205 N.J. 572 (2011) (trial court must stay judicial proceedings pending arbitration; stay may be limited to arbitrable claims)
- Hirsch v. Amper Fin. Servs., LLC, 215 N.J. 174 (2013) (New Jersey policy favors enforcement of arbitration agreements)
