Bynum v. Maplebear Inc.

160 F. Supp. 3d 527, 2016 WL 552058
CourtDistrict Court, E.D. New York
DecidedFebruary 12, 2016
Docket15-CV-6263
StatusPublished
Cited by23 cases

This text of 160 F. Supp. 3d 527 (Bynum v. Maplebear Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bynum v. Maplebear Inc., 160 F. Supp. 3d 527, 2016 WL 552058 (E.D.N.Y. 2016).

Opinion

MEMORANDUM & ORDER

JACK B. WEINSTEIN, Senior United States District Judge:

Table of Contents

I. Introduction ... 529

II. Factual and Procedural Background ...530

A. Parties ... 530

1. Defendant Instacart ... 530

2. Plaintiff Melody Bynum ... 530

B. Agreement between Bynum and instacart ... 530

1. Application Process ... 531

2. HelloSign ...531

3. Parties’ Obligations ... 531

4. Arbitration Agreement ... 531

5. Severability ... 532

6. Governing Law ... 532

C. Defendant’s Motion to Compel Arbitration ... 532

III. Law... 533

A. Federal Arbitration Act ... 533

B. Valid Arbitration Agreement ... 534

C. Arbitrability of Statutory Claims ...535

IV. Application of Law to Facts ... 536

A. Valid Arbitration Agreement ... 536

1. Consent to Arbitrate ... 536

2. Venue and Unconscionability ... 537

a) Venue ... 537

b) Unconscionability ... 537

B. Arbitrability of FLSA Claims ...539

1. FLSA Claims are Arbitrable .. .539 .

. 2. Impact of Cheeks v. Freeport Pancake House... 540

C. Scope of Arbitration Agreement ...541

V. Conclusion . .-.541

I. Introduction

This case asks the question whether the court can sever unconscionable portions of an arbitration agreement with respect to venue and assessments of legal fees and costs and then order arbitration under the purged agreement. This memorandum and order supports an affirmative answer.

Plaintiff Melody Bynum initiated this action against defendant Maplebear Inc., doing business as Instacart (“Instacart”), on October 30, 2015. Alleged is that she was misclassified as an independent contractor and was not paid overtime wages in violation of the Fair Labor Standards Act (“FLSA”) and New York Labor Law (“NYLL”). See generally Compl., Oct. 30, 2015, ECF No. 1 (“Compl.”).

On December 15, 2015, defendant moved to compel arbitration. See Notice of Def.’s Mot. to Compel Arbitration, Dec. 15, 2015, ECF No. 10. It argues that there is a valid arbitration agreement between the parties which requires plaintiff to resolve her wage claims through binding arbitration administered by JAMS (a national private organization providing arbitration [530]*530services). See generally Mem. of Law in Supp. of Def.’s Mot. to Compel Arbitration, Dec. 15, 2015, ECF No. 13 (“Def.’s Mem.”).

Plaintiff opposes the motion. She contends that FLSA claims are not arbitrable. She seeks additional time to complete discovery on whether there was a valid arbitration agreement. See generally PL’s Mem. of Law in Opp. to Def.’s Mot. to Compel Arbitration, Jan. 5, 2016, ECF No. 29 (“Pl.’s Mem.”).

An evidentiary hearing was conducted on February 8, 2016. See Hr’g Tr., Feb. 8, 2016 (“Hr’g Tr.”). Following the parties’ stipulation to sever the arbitration agreement’s venue and fee-related clauses, defendant’s motion to compel was orally granted. Federal law requires enforcement of valid agreements to arbitrate. Without the objectionable venue and fee provisions, the arbitration agreement entered into between the parties is valid.

Plaintiffs testimony as well as the available documentation shows that she received, read and signed the employment contract, which included an agreement to arbitrate. Plaintiff has not argued that she did not' understand what she read, or that she did not provide the signature on the contract. She had a reasonable opportunity to examine the arbitration agreement and understand it; there was no overreaching by defendant in presenting the arbitration clause to her.

Plaintiffs dispute over wages and the terms of her employment falls within the broad scope of the arbitration agreement. For the reasons stated on the record and in this memorandum, the case is stayed pending arbitration in New York in accordance with section 3 of the Federal Arbitration Act (“FAA”).

II. Factual and Procedural Background

A. Parties
1. Defendant Instacart

Instacart is a technology company founded in 2012 and headquartered in San Francisco, California. Decl. of Heather Wake in Supp. of Def.’s Mot. to Compel Arbitration, Dec. 15, 2015, ECF No. 11 (“Wake Decl.”), at ¶ 2: Through the use of a “communications and logistics platform,” Instacart “facilitate[s] connections between customers who wish to purchase grocery items and individuals who are willing to shop for the groceries and/or deliver the groceries to the customers (called ‘Personal Shoppers’).” Id. at ¶ 3. The Instacart platform is used in several cities including San Francisco, Denver, Philadelphia, and New York. Id. at ¶ 5. Instacart has operated in New York since March 2014. Id.

Customers can create a user account with Instacart and place an online order for groceries from retail stores such as Safeway, PETCO, Costco, Whole Foods Market, and others. Id. at ¶ 6. They can also specify whether they want the groceries delivered and the time for delivery. Id. Instacart’s proprietary communications and logistics technology then connects customers with Personal Shoppers, who are tasked with completing the order. Id. at ¶ 7.

2. Plaintiff Melody Bynum

Plaintiff Melody Bynum is a resident of Queens County, New York. Compl. at ¶ 7. According to the complaint, she worked for defendant as a Personal Shopper from October 2014 to on or about October 7, 2015, performing delivery work within New York. Id. at ¶¶ 11-12.

B. Agreement between Bynum and Instacart

Plaintiff entered into an Independent Contractor Agreement (“Agreement”) with [531]*531Instacart on October 15, 2014, after applying for the position of Personal Shopper through the Instacart website. Wake Deck at ¶¶ 9,12, Ex. A.

1.Application Process

In order to become a Personal Shopper, an applicant clicks on a link available on the front page of the Instacart website which says “Become a Shopper.” Id. at ¶ 8. Clicking on the “Become a Shopper” link takes the applicant to the application section of Instacart’s website. The application includes a description of a Personal Shopper’s expected tasks (purchasing or delivering groceries, or both), required qualifications, an overview of the application process, and a link that says “Apply Now!” to begin the application. Id. Each applicant is required to electronically sign an Independent Contractor Agreement as part of his or her application. Id. at ¶ 9, Ex. A.

2.HelloSign

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Bluebook (online)
160 F. Supp. 3d 527, 2016 WL 552058, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bynum-v-maplebear-inc-nyed-2016.