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Arbitration Issue in Suit Against Roger Ailes
A sexual harassment suit filed against Fox News Network chairman and CEO Roger Ailes by former anchor Gretchen Carlson, Carlson v. Ailes (Supr. Ct. N.J., Bergen Cty.), is influenced by varying climates in New Jersey and New York when it comes to arbitration agreements.
An agreement in Carlson's contract to submit employment disputes to arbitration would not survive scrutiny under New Jersey law but would likely survive a challenge under the law of New York, lawyers say. New Jersey's stricter scrutiny of such agreements likely played a major role in the decision by Carlson's lawyers to file her sexual harassment suit against Ailes in that state, some lawyers said. However, another contract clause dictating that New York law applies to Carlson's contract would erase any advantage provided by a New Jersey venue.
Ailes took action to remove the July 6 suit from a New Jersey county court to federal court and to compel arbitration in the case. The motion to compel arbitration cited a clause in Carlson's 2013 employment contract requiring “any controversy, claim or dispute” arising out of her employment to be brought before “a mutually selected three-member panel and held in New York City in accordance with the rules of the American Arbitration Association then in effect.”
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