Judge orders at&t to return to arbitration or face $250 daily fines

Camden, NJ – A federal judge has ordered telecommunications giant AT&T and collection agency Radius Global Solutions to immediately return to arbitration with plaintiffs Tyisha and Tyrone Johnson — or face daily financial sanctions for failing to comply.

In a ruling issued Friday, U.S. District Judge Karen M. Williams of the District of New Jersey granted the Johnsons’ motion to compel arbitration, directing both defendants to resume proceedings before the American Arbitration Association (AAA) in Case No. 01-24-0007-0895. The court’s order mandates that AT&T and Radius Global Solutions “participate in and complete arbitration” under the AAA’s Consumer Arbitration Rules.

The court noted that both companies filed a joint notice indicating they did not oppose the motion. As a result, Judge Williams stayed the federal case in its entirety until arbitration is complete, stating that the order was issued “to secure the just, speedy, and inexpensive determination” of the dispute.

AT&T is now required to pay all outstanding AAA administrative and arbitrator fees within seven days, and file proof of payment confirming that arbitration has resumed. Failure to do so could result in a finding of civil contempt and fines of $250 per day, jointly and severally against both defendants, beginning on the eighth day after the order’s entry.

Contempt threat underscores court’s frustration

The order lays out strict compliance measures, including deadlines for filing joint status reports detailing payment confirmation, arbitration scheduling, and hearing dates. Should the companies fail to meet any deadlines, the court will award the Johnsons attorney fees and costs associated with enforcing the order.

AT&T and Radius Global Solutions must resume AAA arbitration immediately
Judge warns of $250 daily fines for failure to comply
Federal case stayed pending completion of arbitration

The order also denies as moot AT&T’s earlier motion to set aside default and the Johnsons’ motion to strike, noting that both issues are rendered irrelevant by the new arbitration mandate.

Judge Williams emphasized that the court retains jurisdiction to enforce compliance and issue further sanctions if necessary.

Case returns to arbitration table under court pressure

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