Hoang To v. DirectToU, LLC

Summary

The United States District Court for the Northern District of California granted defendants’ motion to stay the action and compel arbitration in a putative class action alleging violations of the Video Privacy Protection Act and California law. The court held that defendants had not waived their right to arbitrate and that the online Terms of Use formed a valid and enforceable arbitration agreement covering the dispute. Plaintiffs were ordered to pursue individual arbitration, and their motion to appoint interim class counsel was denied as moot.

Holdings

1. Defendants did not waive their right to compel arbitration because, viewed under the totality of the circumstances, they had not litigated the merits of the arbitrable claims or sought a judicial judgment on those claims.
2. Alternatively, defendants' right to compel arbitration was revived because the Third Amended Complaint made more than minor changes by adding two plaintiffs, one defendant, and significant new allegations.
3. The arbitration agreement contained in the websites' Terms of Use was valid and binding.
4. The broad arbitration agreement provided clear and unmistakable evidence that the parties agreed to arbitrate arbitrability.

Questions Presented

1. Whether defendants waived their right to compel arbitration by negotiating a classwide settlement, pursuing procedural litigation, and delaying their motion to compel.
2. Whether plaintiffs' substantial amendments to the complaint revived defendants' right to compel arbitration even if defendants had previously waived it.
3. Whether a valid and enforceable arbitration agreement was formed between the parties.
4. Whether the broad arbitration agreement clearly and unmistakably delegated questions of arbitrability to the arbitrator.
5. Whether the action should be stayed and plaintiffs ordered to proceed to individual arbitration.

Disposition

other