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Arbitration Issue in Suit Against Roger Ailes

By Charles Toutant

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.

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