Capriole v. Uber Technologies, Inc.

CourtDistrict Court, N.D. California
DecidedMarch 31, 2020
Docket3:20-cv-02211
StatusUnknown

This text of Capriole v. Uber Technologies, Inc. (Capriole v. Uber Technologies, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Capriole v. Uber Technologies, Inc., (N.D. Cal. 2020).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS

JOHN CAPRIOLE, individually * and on behalf of all others similarly * situated, * * Plaintiff, * * Civil Action No. 1:19-cv-11941-IT v. * * UBER TECHNOLOGIES, INC., and * DARA KHOSROWSHAHI, * * Defendants. *

MEMORANDUM AND ORDER

March 31, 2020

TALWANI, D.J.

Plaintiff John Capriole brings this action, on his own behalf and on behalf of drivers who have worked in Massachusetts for Defendant Uber Technologies, Inc. (Uber), based on Uber’s alleged misclassification of drivers as independent contractors.1 For the reasons that follow, Defendants’ Motion to Transfer Venue [#12] to the United States District Court for the Northern District of California pursuant to 28 U.S.C. § 1404(a) and a forum selection clause is ALLOWED, and Defendants’ Emergency Motion for a Stay of All Proceedings Pending Resolution of their Motion to Transfer [#53] is DENIED as moot. The court defers ruling on Plaintiff’s Emergency Motion for a Preliminary Injunction [#42] and Plaintiff’s Motion for Leave to File Second Amended Complaint [#43].

1 Plaintiff also names Defendant Dara Khosrowshahi, as President and Chief Executive Officer of Uber. I. Procedural History Plaintiff filed this putative class action, on his own behalf and on behalf of similarly situated Uber drivers in Massachusetts, under the Massachusetts Wage Act, M.G.L. c. 149, §§ 148, 148B, and M.G.L. c. 151, §§ 1, 1A, and the Uniform Declaratory Judgment Act, 28 U.S.C. §§ 2201, et seq., alleging misclassification and non-payment of minimum wage and

overtime.2 Defendants responded with a Motion to Compel Arbitration and to Stay Proceedings [#10] and a Motion to Transfer Venue [#12]. Defs.’ Mot. to Transfer Venue 9, n.2 [#12]. While these motions were pending, Capriole amended his complaint in light of the ongoing COVID-19 pandemic to add a claim alleging violations of the Massachusetts Earned Sick Time Law, M.G.L. c. 149, § 148C. Am. Compl. [#40]. Plaintiff also filed an Emergency Motion for a Preliminary Injunction [#42] based on the sick leave claim3 and a Motion for Leave to File Second Amended Complaint [#43] to add additional plaintiffs.4 Defendants subsequently filed a Notice [#47] withdrawing their Motion to Compel

Arbitration and to Stay Proceedings [#10] on the ground that it was moot because the Amended Complaint [#40] superseded the Complaint [#1] to which it was directed.5 Defendants also filed

2 Capriole also filed a motion for a preliminary “public injunction.” Pl’s Mot. for Injunctive Relief [#4]. The motion was briefed before the current COVID-19 pandemic and does not address allegations of individual or class-wide harm posed by the pandemic. Plaintiff has filed a Notice of Appeal [#51] of the Memorandum and Order [#41] denying this motion. 3 Plaintiff’s counsel’s Local Rule 7.1(a) certification states that Defendants oppose the relief requested. [#42]. The court has ordered Defendants to file their response by April 3, 2020, and has granted their emergency request to file an oversized brief. Elec. Orders [#49], [#55]. 4 Plaintiff’s counsel’s Local Rule 7.1(a) certification states that Defendants oppose the relief requested. Pl’s Mot. for Leave to File Second Am. Compl. 5 [#43]. Defendants have not yet filed their opposition to this motion. 5 Defendants state further that they intend to file a new motion to compel arbitration of Plaintiff’s claims in the First Amended Complaint. Notice ¶ 3 [#47]. their Emergency Motion for a Stay of All Proceedings Pending Resolution of their Motion to Transfer [#53].° Il. Background Uber is a ridesharing company that uses a smartphone application (“Uber App” or “App”) to allow customers to hail rides. Boggs Decl. §] 5 [#13]. To become an Uber driver, an individual must download the App and agree to Uber’s Technology Services Agreement (“Agreement”) with Raiser, LLC, a subsidiary of Uber. Boggs Am. Decl. ¥ 3 [#33-1]. In 2016, when drivers first opened the App, they were presented with the following screen: Ld detetee=) 10 pe weer i

TO GO ONLINE, YOU MUST REVIEW ALL THE DOCUMENTS BELOW AND AGREE TO THE CONTRACTS BELOW.

Service Fee Addendum

By clicking below, you represent that you have reviewed all the

Id. at {| 6; Ex. 2 — Screenshot (Boggs Am. Decl.) [#33-1].

© Defendants’ counsel’s Local Rule 7.1(a) certification states that Plaintiff opposes the relief requested. Defs’ Emergency Mot. to Stay Proceedings 12 [#53]. Plaintiff has not yet filed his oppositions to this motion.

At the top, the screen read “TO GO ONLINE, YOU MUST REVIEW ALL THE DOCUMENTS BELOW AND AGREE TO THE CONTRACTS BELOW.” Boggs Am. Decl. ¶ 6 [#33-1]. Drivers had the option of clicking on two links in black typeface, either the “RAISER Technology Services Agreement December 10 2015” or the “Service Fee Addendum.” Id. At the bottom of the page, a large blue button was presented to drivers with white typeface

stating, “YES I AGREE.” Id.; Ex. 2 – Screenshot (Boggs Am. Decl.) [#33-1]. In smaller letters above the blue button, the screen read “[b]y clicking below, you represent that you have reviewed all the documents above and that you agree to all the contracts above.” Id. After a driver clicked the “Yes I Agree” button, a new box popped up in the middle of the screen, which read “PLEASE CONFIRM THAT YOU HAVE REVIEWED ALL THE DOCUMENTS AND AGREE TO ALL THE NEW CONTRACTS.” Id. ¶ 7; Ex. 3 – Screenshot (Boggs Am. Decl.) [#33-1]. Drivers at this point had the option of clicking “No” or “Yes I Agree.” Id. If a driver clicked the “RAISER Technology Services Agreement December 10 2015” link, the Agreement opened. Ex. 1 at 1 (Boggs Am. Decl.) [#33-1].7 At the beginning of the

Agreement, the document stated: IMPORTANT: PLEASE NOTE THAT TO USE THE UBER SERVICES, YOU MUST AGREE TO THE TERMS AND CONDITIONS SET FORTH BELOW. PLEASE REVIEW THE ARBITRATION PROVISION SET FORTH BELOW CAREFULLY, AS IT WILL REQUIRE YOU TO RESOLVE DISPUTES WITH THE COMPANY ON AN INDIVIDUAL BASIS . . . THROUGH FINAL AND BINDING ARBITRATION, UNLESS YOU CHOOSE TO OPT OUT OF THE ARBITRATION PROVISION.

7 The Agreement attached as Ex. 1 is dated December 11, 2015. It was the only Agreement presented to drivers between December 11, 2015 and November 2019. Boggs Am. Decl. ¶ 3 [#33-1]. Ex. 1 at 1 (Boggs Am. Decl.) [#33-1].8 Section 15.1 of the Agreement included a forum selection clause and a choice of law provision, stating: The choice of law provisions contained in this Section 15.1 do not apply to the arbitration clause contained in Section 15.3, such arbitration clause being governed by the Federal Arbitration Act. Accordingly, and except as otherwise stated in Section 15.3, the interpretation of this agreement shall be governed by California law, without regard to the choice or conflicts of law provisions of any jurisdiction. Any disputes, actions, claims or causes of action arising out of or in connection with this Agreement or the Uber Services that are not subject to the arbitration clause contained in Section 15.3 shall be subject to the exclusive jurisdiction of the state and federal courts located in the City and County of San Francisco, California.

Id. at § 15.1 [#33-1]. The Agreement also contained an arbitration provision, which stated, in relevant part: This Arbitration Provision will require you to resolve any claim that you may have against the Company or Uber on an individual basis, except as provided below, pursuant to the terms of the agreement unless you choose to opt out of the Arbitration Provision. . . .

(i) This Arbitration Provision is governed by the Federal Arbitration Act, 9 U.S.C.

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