Patricia Atalese, Plaintiff-Appellant v. U.S. Legal Services Group, L.P., Defendant-Respondent

Summary

The Court held that the arbitration provision in the consumer debt-adjustment contract was unenforceable because it did not clearly and unambiguously inform the consumer that arbitration replaced the right to pursue claims in court. Although arbitration agreements are favored and need not use prescribed language, they must provide reasonable notice that the consumer is surrendering a constitutional or statutory right to a judicial forum. The Court reversed the Appellate Division and remanded for further proceedings.