In a significant procedural ruling, the New Jersey Appellate Division today vacated a lower court order that denied a rehabilitation facility’s motion to compel arbitration in the case brought by one of Dion Marsh’s victims. The matter has now been remanded for a full evidentiary hearing on whether the plaintiff, Yigal Goldberg, had the mental capacity to enter into an arbitration agreement.
The underlying case stems from a violent antisemitic spree committed by Dion Marsh on April 8, 2022, during which he targeted and seriously injured multiple visibly Orthodox Jewish individuals in Lakewood and Jackson. One of the victims, Yigal Goldberg, suffered extensive injuries including shattered bones and underwent multiple surgeries.
Following his hospital treatment, Goldberg was transferred to Jewish Home for Rehabilitation and Nursing in April 2023. There, he alleges he was subjected to physical mishandling that directly violated medical orders prohibiting any weight-bearing activity. A lawsuit filed in May 2024 by Goldberg and his wife Yafet alleges negligence, malpractice, and other claims arising from the facility’s care.
Jewish Home sought to dismiss the lawsuit and compel arbitration, citing a signed "Alternate Dispute Resolution Agreement" that includes both mediation and binding arbitration provisions. The agreement, dated April 28, 2022, contains standard language warning the signer that they are waiving their rights to a jury trial and court proceedings.
However, the Goldbergs opposed the motion, asserting that Yigal lacked the mental capacity to enter into the agreement due to heavy medication, severe physical trauma, and lifelong dyslexia. They submitted certifications and a 2018 psychological assessment documenting cognitive and memory deficits, anxiety, and reading disabilities.
The trial court denied the motion to compel arbitration on August 2, 2024, finding that Jewish Home failed to prove Yigal had agreed to the arbitration clause.
Today however, the Appellate Division reversed. The panel, consisting of Judges Sabatino and Gummer, ruled that the lower court had improperly decided disputed factual issues without holding a required evidentiary hearing. Specifically, the appellate judges noted that the trial court relied solely on affidavits and failed to consider contradictory facility records submitted by Jewish Home, including evaluations suggesting Yigal was fully oriented and cognitively intact during his stay.
The Appellate Division emphasized that, under established law, questions of contractual capacity require clear and convincing evidence and must be determined through proper evidentiary proceedings when facts are in dispute. “Where there are material factual issues… concerning a plaintiff’s mental state, the court should hold an evidentiary hearing,” the court wrote, citing Giannakopoulos v. Mid State Mall.
The matter is now remanded for such a hearing, where the court will determine whether Yigal Goldberg was mentally competent to understand and sign the arbitration agreement. If the court finds he was competent and compels arbitration, it must stay — not dismiss — the lawsuit pending completion of the arbitration process.
Attorney Margo Zemel represents the Goldbergs. Dion Marsh, the assailant in the 2022 attack, is currently serving a 40-year prison sentence.
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