Davis v. USA Nutra Labs, Co.

303 F. Supp. 3d 1183
CourtDistrict Court, D. New Mexico
DecidedMarch 28, 2018
DocketCV 15–1107 MV/SCY
StatusPublished
Cited by12 cases

This text of 303 F. Supp. 3d 1183 (Davis v. USA Nutra Labs, Co.) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. USA Nutra Labs, Co., 303 F. Supp. 3d 1183 (D.N.M. 2018).

Opinion

MARTHA VÁZQUEZ, United States District Judge

THIS MATTER comes before the Court on Defendant Groupon Goods Inc.'s Motion to Compel Arbitration and Stay Proceedings [Doc. 24]. The Court, having considered the motion, briefs, and relevant law, and being otherwise fully informed, finds that the Motion is well-taken and will be granted.

BACKGROUND

In December 2013, Plaintiff Lynn Davis received email advertisements from Defendant Groupon Goods, Inc. ("Groupon") promoting Garcinia Cambogia, a weight loss product. Doc. 1 at ¶ 7. On or about December 6, 2013, Plaintiff ordered three bottles, or a three-month supply, of Garcinia Cambogia tablets through Groupon's website. Id. at ¶ 9.

According to the evidence submitted by Groupon, before placing her order, Plaintiff was required to create an account. Doc. 24-1. To create her account, Plaintiff was required to click a box immediately to the left of the words, "I agree to the Terms of Use and Privacy Statement." Doc. 24-2. Further, before finalizing her order, Plaintiff was required to click a button that said "Complete Order." Doc. 43-1 at ¶ 7. Directly below the "Complete Order" button was a sentence stating: "[b]y clicking 'Complete Order' I accept the Terms and Conditions and Privacy Policy." Doc. 24-4. The phrase "Terms and Conditions" contained a hyperlink that permitted the customer to access the Terms of Use by clicking on the phrase "Terms and Conditions." Doc. 43-1 at ¶ 9.

The version of Groupon's Terms of Use that was in effect on December 6, 2013, the date of Plaintiff's purchase of the Garcinia Gambogia tablets, was a 22-page document. The First page had a table of contents, with hyperlinks to each numbered-section, preceded by the following introduction:

Welcome to the Groupon Site. In order to use our Site (as defined below), you must agree to our Terms of Use-The Terms of Use are our "rules of the road"-they are important and contain many legal disclosures that you should read carefully-including terms of sale that apply when you buy something through the Site and terms specifying permissible uses of the Site. If you have any questions about these Terms of Use, contact us here.

*1188Doc. 24-3 at 1. Section 18 of the document was titled, "Arbitration," and provided as follows:

We will make every reasonable effort to resolve any disagreements that you have with Groupon. If those efforts fail, by using this Site you agree that any claim, dispute, or controversy you may have against Groupon arising out of, or relating to, or connected in any way with this Agreement this Site or the purchase or sale of any voucher(s), shall be resolved exclusively by final and binding arbitration administered by the American Arbitration Association ("AAA") and conducted before a single arbitrator pursuant to the applicable Rules and Procedures established by AAA ("Rules and Procedures"). You agree further that: (a) the arbitration shall be held at a location determined by AAA pursuant to the Rules and Procedures (provided that such location is reasonably convenient for you), or at such other location as may be mutually agreed upon by you and Groupon; (b) the arbitrator shall apply Illinois law consistent with the Federal Arbitration Act and applicable statutes of limitations, and shall honor claims of privilege recognized at law; (c) there shall be no authority for any claims to be arbitrated on a class or representative basis; arbitration can decide only your and/or persons or parties who may be similarly situated; (d) in the event that you are able to demonstrate that the costs of arbitration will be prohibitive as compared to the costs of litigation, Groupon will pay as much of your filing and hearing fees in connection with the arbitration as the arbitrator deems necessary to prevent the arbitration from being cost-prohibitive; and (e) with the exception of subpart (c) above, if any part of this arbitration provision is deemed to be invalid, unenforceable or illegal, or otherwise conflicts with the Rules and Procedures established by AAA, then the balance of this arbitration provision shall remain in effect and shall be construed in accordance with its terms as if the invalid, unenforceable, illegal or conflicting provision were not contained therein. If, however, subpart (c) is found to be invalid, unenforceable or illegal, then the entirety of this Arbitration Provision shall be null and void, and neither you nor Groupon shall be entitled to arbitrate their dispute.

Doc. 24-3 at 20.

Plaintiff received the tablets that she had ordered, and began taking them in late January or early February 2014. Doc. 1 at ¶ 11. In March, she began to feel ill and stopped taking the tablets. Id. at ¶ 12. Thereafter, in May 2014, Plaintiff was hospitalized and found to have nearly no liver function. Id. at ¶¶ 17-18. Ultimately, Plaintiff needed a liver transplant, which she received in June 2014, at the Mayo Clinic Hospital in Phoenix, Arizona. Id. at ¶¶ 18, 19. The Mayo Clinic Hospital determined that the Garcinia Cambogia tablets were the probable cause of Plaintiff's acute liver failure. Id. at ¶ 20.

As a result, Plaintiff commenced the instant action against, inter alia , Groupon, alleging claims of strict liability for defective product, strict liability for failure to warn, negligence, and unfair trade practices. Id. at ¶¶ 25-49. Plaintiff also seeks punitive damages based on her claims. Id. at ¶¶ 50-51.

Groupon filed the instant motion to compel arbitration and stay proceedings, arguing that Plaintiff agreed to Groupon's terms of service, and that those terms of service require arbitration of the dispute in this action. Plaintiff opposes Groupon's motion, arguing that no valid arbitration agreement exists, and that even if there is a valid arbitration agreement, her claims *1189are outside the scope of any such agreement.

LEGAL STANDARD

The Federal Arbitration Act ("FAA") applies to arbitration provisions in "a contract evidencing a transaction involving commerce." 9 U.S.C. § 2. Under the FAA, such arbitration provisions "are valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract." 9 U.S.C. § 2. Section 2 of the FAA creates "a substantive rule applicable in state as well as federal courts." Southland Corp. v. Keating , 465 U.S. 1, 16, 104 S.Ct. 852, 79 L.Ed.2d 1 (1984).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Canteen v. Charlotte Metro Credit Union
Supreme Court of North Carolina, 2024
Clements v. Alto Trust Co.
D. New Mexico, 2023
Woodell v. Vivint, Inc.
D. New Mexico, 2023
Blake v. JPay
D. Kansas, 2022
Beland v. Expedia CA3
California Court of Appeal, 2021
Guarriello v. Asnani
D. New Mexico, 2020

Cite This Page — Counsel Stack

Bluebook (online)
303 F. Supp. 3d 1183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-usa-nutra-labs-co-nmd-2018.