Category: Arbitration: Consumers

Consumers, Internet Commerce: Ninth Circuit Holds Sign-In Wrap Did Not Result In Binding Arbitration

Judge Ryan Nelson Writes Majority Opinion And Concurring Opinion.         In Godun v. JustAnswer LLC, No. 24-2095 (9th Cir. 4/15/24) (R. Nelson, Paez, Ikuta), plaintiffs alleged that JustAnswer deceptively enrolled them in costly recurring subscriptions after paying $1–$5 for answers online. JustAnswer moved to compel arbitration under Terms of Service containing an arbitration clause, arguing […]

Enforceability Of Arbitration Agreement On Internet: 9th Circuit Agrees Terms Were Not Conspicuous Enough

"A Question Of Ever-Increasing Ubiquity In Today's E-Commerce World."         The question: did an internet user’s online activities bind her to certain terms and conditions?          The majority opinion in Katherine Chabolla v. ClassPass Inc., et al, 23:15999 (9th Cir.  2/27/25) (Mendoza, Fitzgerald; Bybee, dsst.) affirmed the district court’s decision to deny ClassPass’s motion to […]

Delegation, Unconscionability: First District Div. 2 Affirms Order Denying Petition To Compel Arbitration

On-Line Gaming Was The Context For The Case.         The world of on-line gaming presents challenges to companies wishing to bind players to arbitration. As our next case illustrates, gamers are likely to be treated as unsophisticated consumers with unequal bargaining power. Pavel Gostev v. Skillz Platform, Inc., A164407 (1/2  2/28/23) (Miller, Stewart, Richman).     […]

Consumers, Employment, FAA: Second Dist. Div. 1 Holds CA Statutes Protecting Employee From “Procedural Limbo” In Arbitration Are Not Preempted By Federal Law

Business That Dilly-Dally About Paying Arbitration Fees Face Consequences.         In a case of first impression, the California Court of Appeal asks whether California Code of Civil Procedure, §§ 1281.97, 1281.98, and 1281.99 are preempted by the Federal Arbitration Act, 9 U.S.C. § 1 et seq. Sunny Gallo v. Wood Ranch, USA, B311067 (2/1  7/25/22) […]

Arbitration, Unconscionability: Two Trial Courts Deny Motions To Compel Arbitration, Two Courts Of Appeal Affirm

Elders In Both Cases . . .  Arbitration And An Elder Abuse Act Case.         Dougherty v. Roseville Heritage Partners, et al., C087224 (3rd Dist. 3/30/20) (Krause, Murray, Hoch) is another of the many elder care facility cases in which the enforceability of an arbitration clause is at issue. Here, the trial court denied the […]

Federal Arbitration Act, Consumers, Arbitration: First Amendment Challenge To Arbitration Clause Fails In Ninth Circuit

Does The Federal Arbitration Act Implicate "State Action"?           "No" is the short answer.  However, read on if you want to know about the novel argument made by consumer plaintiffs in Roberts v. AT&T Mobility, No. 16-16915 (9th Cir.  12/11/17) (Tallman, Hawkins, Fletcher).         In Roberts, AT&T moved to compel arbitration against putative […]

Consumers/Fees/Settlement Agreements: Defendants Contesting Fee Award Lose On Appeal Because In Settlement Agreement, They Agreed To Fee Entitlement

Reasonableness Of Award Did Not Need To Be Addressed, Because Entitlement, Which Parties Agreed To, Was The Real Issue.         Once a case is settled, some issues need not be litigated, even though the parties may want to do so.  Such was the case in Medina v. South Coast Car Company, Inc., D069820 (4/1  […]

Arbitration, Enforceability, Consumers, Existence Of Agreement, Nonsignatories: Assignee Of Credit Card Account Agreement Could Enforce Arbitraiton Provision Against Credit Card Holder

Existence Of Agreement Was Established With Affidavit Of A Person With First-Hand Knowledge Of Procedures. Early Example Of Credit Card.         Plaintiff Yenko filed a putative class action lawsuit against Crown Asset Management, LLC, a debt buyer that purchased plaintiff's alleged charged-off credit card debt.  The trial court held that Crown, as the assignee of […]

Arbitration, Consumers, Delegation, Gateway Issues, Unconscionability: Fifth District Vacates Parts Of Trial Court Order About Unconscionability And Arbitrability, And Upholds Delegation Clause Sending Consumer Dispute To JAMS Arbitrator

Enforceable Delegation Provision Means The Buck Does Not Stop With Court, But Gets Passed To Arbitrator.         Aanderud v. Superior Court (Vivint Solar Developer, LLC, Real Party In Interest), F073277 (5th Dist.  7/26/17) (Gomes, Hill, Meehan), is worth reading for its analysis of how a delegation provision is applied to a consumer arbitration, where the […]