Trenk Isabel Siddiqi & Shahdanian Secures Order Compelling Arbitration of Homeowner’s Construction Claims

Trenk Isabel Siddiqi & Shahdanian secured a favorable ruling on behalf of clients Gold Coast Builders, LLC, Yasar Malas, and Moustafa Malas in a construction dispute involving a custom home in Carlstadt, New Jersey.

On November 2, 2026, the Superior Court of New Jersey, Law Division, Bergen County, granted the firm’s motion for reconsideration, vacating its prior order and compelling arbitration of all claims before the American Arbitration Association. The court also stayed the pending lawsuit, in which the homeowner alleged that the firm’s clients had mishandled construction management of the property.

Atalese v. U.S. Legal Services Group, L.P., 219 N.J. 430 (2014), requires an arbitration clause in a consumer contract to state clearly that the consumer is giving up the right to sue in court. The Appellate Division has recognized that this requirement does not apply where the agreement was individually negotiated between parties of comparable bargaining power. County of Passaic v. Horizon Healthcare Services, Inc., 474 N.J. Super. 498 (App. Div. 2023). In this case, the court applied that reasoning to an individual homeowner.

The court relied on two key factors. First, the homeowner’s own attorney reviewed the agreement, commented on the arbitration clause and its consequences, and revised it for the homeowner. The court emphasized that having a lawyer was not enough on its own; what mattered was counsel’s role in shaping the clause. Second, the agreement placed the homeowner in control of the project’s contracts, payments, and financing, making him more than a passive consumer. Based on these factors, the court held that the agreement fell outside “the unreviewed, take-it-or-leave-it consumer form setting” Atalese addresses. It enforced the clause notwithstanding the absence of more explicit waiver language.

For contractors, developers, and other businesses, the decision underscores the importance of carefully negotiated and documented arbitration agreements. Where a counterparty is represented by counsel and the arbitration clause is actively negotiated, the circumstances surrounding the agreement can support its enforcement, even when the clause lacks the language generally required under Atalese.

The successful motion was prepared by firm Director Asaad K. Siddiqi and associate Luke D. Grygier.

Results may vary depending on your particular facts and legal circumstances.