Airbnb, Inc. v. John Doe

CourtSupreme Court of Florida
DecidedMarch 31, 2022
DocketSC20-1167
StatusPublished

This text of Airbnb, Inc. v. John Doe (Airbnb, Inc. v. John Doe) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Airbnb, Inc. v. John Doe, (Fla. 2022).

Opinion

Supreme Court of Florida ____________

No. SC20-1167 ____________

AIRBNB, INC., Petitioner,

vs.

JOHN DOE, et al., Respondents.

March 31, 2022

POLSTON, J.

Airbnb, Inc. (Airbnb) seeks review of the Second District Court

of Appeal’s decision in Doe v. Natt, 299 So. 3d 599, 610 (Fla. 2d

DCA 2020) (certifying conflict). 1 The issue before this Court

involves who decides arbitrability—“whether a dispute is subject to

a contract’s arbitration provision”—an arbitrator or a judge. Id. at

600. Specifically, we address whether Airbnb’s Terms of Service

that incorporate by reference the American Arbitration Association

(AAA) Rules that expressly delegate arbitrability determinations to

1. We have jurisdiction. See art. V, § 3(b)(4), Fla. Const. an arbitrator constitute “clear and unmistakable” evidence of the

parties’ intent to empower an arbitrator, rather than a court, to

resolve questions of arbitrability. As explained below, we hold that

under the Federal Arbitration Act (FAA), it does and quash the

Second District’s decision in Natt.

I. BACKGROUND

The Second District set forth the following pertinent facts:

A Texas couple, who will be referred to as John and Jane Doe to preserve their confidentiality, decided to vacation in Longboat Key. Through a business, Airbnb, Inc. (Airbnb), they located a condominium unit online that was available for a short-term rental in the Longboat Key area. Using Airbnb’s website, Mr. and Mrs. Doe rented the unit for a three-day stay in May of 2016. The condominium unit was owned by Wayne Natt. Unbeknownst to the Does, Mr. Natt had installed hidden cameras throughout the unit. The Does allege that Mr. Natt secretly recorded their entire stay in his unit, including some private and intimate interactions. After they learned of Mr. Natt’s recordings, the Does filed a complaint in the circuit court of Manatee County, naming both Mr. Natt and Airbnb as defendants. Their complaint included claims of intrusion against Mr. Natt, constructive intrusion against Airbnb, and loss of consortium against both Mr. Natt and Airbnb. In their constructive intrusion claims, the Does alleged that Airbnb failed to warn them of past invasions of privacy that had occurred at other properties rented through Airbnb. They also alleged that Airbnb failed to ensure that Mr. Natt’s property did not contain electronic recording devices.

-2- In response to the Does’ complaint, Airbnb filed a motion to compel arbitration. Airbnb argued that the Does’ claims were subject to arbitration under Airbnb’s Terms of Service, which the Does agreed to be bound to pursuant to a “clickwrap” agreement[2] they had entered when they first created their respective Airbnb accounts online.

Natt, 299 So. 3d at 600-01 (footnote omitted).

Airbnb’s Terms of Service began with the following statement:

PLEASE READ THESE TERMS OF SERVICE CAREFULLY AS THEY CONTAIN IMPORTANT INFORMATION REGARDING YOUR LEGAL RIGHTS, REMEDIES AND OBLIGATIONS. THESE INCLUDE VARIOUS LIMITATIONS AND EXCLUSIONS, A CLAUSE THAT GOVERNS THE JURISDICTION AND VENUE OF DISPUTES, AND OBLIGATIONS TO COMPLY WITH APPLICABLE LAWS AND REGULATIONS.

The “Dispute Resolution” clause, by which Airbnb seeks to compel

arbitration, appeared in the Terms of Service and set forth the

following:

Dispute Resolution

You and Airbnb agree that any dispute, claim or controversy arising out of or relating to these Terms or the breach, termination, enforcement, interpretation or validity thereof, or to the use of the Services or use of the

2. The Second District defined a clickwrap agreement “as one that is entered online by proposing contractual terms and conditions of service to a user, who then indicates his or her assent to the terms and conditions by clicking an ‘I agree’ box.” Doe v. Natt, 299 So. 3d 599, 601 n.2 (Fla. 2d DCA 2020).

-3- Site or Application (collectively, “Disputes”) will be settled by binding arbitration, except that each party retains the right to seek injunctive or other equitable relief in a court of competent jurisdiction to prevent the actual or threatened infringement, misappropriation or violation of a party’s copyrights, trademarks, trade secrets, patents, or other intellectual property rights. You acknowledge and agree that you and Airbnb are each waiving the right to a trial by jury or to participate as a plaintiff or class member in any purported class action or representative proceeding. Further, unless both you and Airbnb otherwise agree in writing, the arbitrator may not consolidate more than one person’s claims, and may not otherwise preside over any form of any class or representative proceeding. If this specific paragraph is held unenforceable, then the entirety of this “Dispute Resolution” section will be deemed void. Except as provided in the preceding sentence, this “Dispute Resolution” section will survive any termination of these Terms.

Arbitration Rules and Governing Law. The arbitration will be administered by the American Arbitration Association (“AAA”) in accordance with the Commercial Arbitration Rules and the Supplementary Procedures for Consumer Related Disputes (the “AAA Rules”) then in effect, except as modified by this “Dispute Resolution” section. (The AAA Rules are available at www.adr.org/arb_med or by calling the AAA at 1-800- 778-7879.) The Federal Arbitration Act will govern the interpretation and enforcement of this section.

Rule 7 of the AAA Rules3 provided: “The arbitrator shall have the

power to rule on his or her own jurisdiction, including any

3. Before the Does filed suit, the AAA reorganized the relevant rules. The reorganization caused the Consumer Arbitration Rules

-4- objections with respect to the existence, scope, or validity of the

arbitration agreement or to the arbitrability of any claim or

counterclaim.” (Emphasis added.)

After conducting a hearing on Airbnb’s motion to compel

arbitration, the circuit court granted the motion and stayed the

lawsuit pending arbitration. Natt, 299 So. 3d at 602. The circuit

court found “that the parties entered an express agreement which

incorporated the AAA rules, and that [it was] therefore bound to

submit the issue of arbitrability to the arbitrator.” Id.

On appeal, the Does argued that the circuit court erred in

compelling arbitration because the Terms of Service did not clearly

and unmistakably evidence the parties’ intent to delegate questions

of arbitrability to an arbitrator. In a 2-to-1 decision, the Second

District reversed the circuit court’s order, holding “that the

clickwrap agreement’s arbitration provision and the AAA rule it

references that addresses an arbitrator’s authority to decide

arbitrability did not, in themselves, arise to ‘clear and

to become a standalone set of rules instead of a supplement to the Commercial Arbitration Rules. The relevant AAA Rule was relocated from Rule 7 to Rule 14 without any alterations to its language or this Court’s legal analysis.

-5- unmistakable’ evidence that the parties intended to remove the

court’s presumed authority to decide such questions.” Id. at 609-

10 (quoting First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938,

944 (1995) (“Courts should not assume that the parties agreed to

arbitrate arbitrability unless there is ‘clea[r] and unmistakabl[e]’

evidence that they did so.”)). The Second District concluded that

the agreement contained “an arguably permissive and clearly

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