Summary
This Appellate Division, First Department decision addresses whether a personal injury claim arising from a hotel stay must be arbitrated and whether a limitation of liability clause bars the suit against an online travel agency. The court held that the arbitration clause did not unequivocally cover disputes over personal injuries caused by the resort's negligence, as the plaintiff's relationship with the booking platform was limited to making reservations. Consequently, the court reversed the lower court's order compelling arbitration and instead granted the defendant's motion to dismiss the complaint based on the contractual limitation of liability provision.
Topics
Practice areas
Questions Presented
- Whether the arbitration clause in Agoda's terms of use encompasses plaintiff's personal injury claim.
- Whether the limitation of liability clause bars plaintiff's claim against Agoda.
Holdings
- The arbitration clause does not cover the personal injury claim because the dispute does not arise out of or relate to the plaintiff's relationship with Agoda.
- The limitation of liability clause in the terms of use definitively disposes of plaintiff's claim against Agoda; the motion to dismiss is granted.
Key quotations
“A "party cannot be compelled to submit to arbitration unless the agreement to arbitrate expressly and unequivocally encompasses the subject matter of the particular dispute" (Gerling Global Reins. Corp. v Home Ins. Co., 302 AD2d 118, 123 [1st Dept 2002], lv denied 99 NY2d 511 [2003]).”
“The terms of use also define Agoda's role as providing a platform for individuals to browse information about accommodations and make reservations at accommodations. Furthermore, the terms of use make clear that "Agoda does not in any way . . . own, manage, operate or control" the accommodations and that Agoda will not be liable in damages for any "(PERSONAL) INJURY . . ., OR OTHER DAMAGES, ATTRIBUTABLE TO THE ACCOMMODATION."”
Factual background
Plaintiff McWashington booked a stay at a Hyatt resort through Agoda's website, agreed to Agoda's terms of use containing a limitation of liability and arbitration clause, and later slipped and fell in the hotel shower, sustaining personal injuries.
Procedural history
The Supreme Court, New York County entered an order granting, in part, Agoda International USA LLC's motion to dismiss the complaint and to compel arbitration, and stayed the proceedings. Agoda appealed the order to the Appellate Division, First Department.