In its May 18th decision in Pace v. Hamilton Cove, the Appellate Division held that courts will not enforce a class action waiver, unless the contract also contains a mandatory arbitration provision. The court recognized the benefits and strong public policy favoring class actions, including economic efficiency, judicial economy, and avoiding inconsistent results. The Appellate Division’s decision was a win for class action plaintiffs. However, the New Jersey Supreme Court just agreed to hear defendant’s interlocutory appeal of that decision. The Court also granted defendant’s request to stay the action pending determination of the appeal. We will have to wait to see if the Supreme Court agrees with the Appellate Division or instead sides with the defendant. Stay tuned.