KEVIN DUGAN VS. BEST BUY CO., INC.(L-1946-16, BURLINGTON COUNTY AND STATEWIDE)
A-1897-16T4
| N.J. Super. Ct. App. Div. | Aug 11, 2017Background
- Kevin Dugan, a long‑time Best Buy general manager, completed an eLearning module on February 4, 2016 presenting Best Buy's new arbitration policy effective March 15, 2016; the module had four screens and an "I acknowledge" checkbox.
- Dugan clicked the acknowledgement box without reading the policy; he did not sign any separate agreement.
- Dugan remained employed for three weeks after the policy's effective date and was terminated on April 5, 2016.
- He sued Best Buy for age discrimination under the New Jersey Law Against Discrimination; Best Buy moved to compel arbitration and to dismiss.
- The trial court granted Best Buy's motion; the Appellate Division reversed, holding Dugan did not assent to the arbitration policy and therefore no arbitration agreement was formed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a valid arbitration agreement existed (assent) | Dugan did not agree to be bound; clicking acknowledgement only showed receipt, not assent | Best Buy argued the eLearning acknowledgement, notice, and continued employment manifested assent | Reversed — no valid agreement: the acknowledgement box and brief continued employment did not show the explicit, affirmative assent required for waiving court access |
| Whether continued employment after effective date manifested assent | Continued employment for three weeks does not indicate explicit assent | Continued employment after effective date can indicate assent (relying on Jaworski) | Rejected here: short duration and wording of Best Buy’s materials did not unambiguously bind employees by mere continued employment; court did not reach scope of arbitration |
Key Cases Cited
- Hirsch v. Amper Fin. Servs., LLC, 215 N.J. 174 (standard of review for motions to compel arbitration)
- Kieffer v. Best Buy, 205 N.J. 213 (arbitration contract interpretation reviewed de novo)
- Atalese v. U.S. Legal Servs. Grp., 219 N.J. 430 (arbitration clauses must clearly and unambiguously show waiver of court access)
- Leodori v. CIGNA Corp., 175 N.J. 293 (employee waiver requires explicit, affirmative agreement)
- Martindale v. Sandvik, Inc., 173 N.J. 76 (FAA preemption and state contract principles; discussion of consideration and adhesion concerns)
- Caspi v. Microsoft Network, LLC, 323 N.J. Super. 118 (electronic clickboxes can indicate assent in some contexts)
- Morgan v. Raymours Furniture Co., 443 N.J. Super. 338 (receipt/understanding acknowledgments do not equal assent to waivers)
- Jaworski v. Ernst & Young U.S., 441 N.J. Super. 464 (continued employment can, in some circumstances, manifest assent when policy language is unambiguous)
