Davitashvili v. Grubhub

131 F.4th 109
CourtCourt of Appeals for the Second Circuit
DecidedMarch 13, 2025
Docket23-521
StatusPublished
Cited by13 cases

This text of 131 F.4th 109 (Davitashvili v. Grubhub) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davitashvili v. Grubhub, 131 F.4th 109 (2d Cir. 2025).

Opinion

23-521-cv (L) Davitashvili v. Grubhub

In the United States Court of Appeals for the Second Circuit

AUGUST TERM 2023

Nos. 23-521-cv (L); 23-522-cv (Con)

MARIAM DAVITASHVILI and ADAM BENSIMON, individually and on behalf of all others similarly situated, Plaintiffs-Appellees,

PHILIP ELIADES, JONATHAN SWABY, JOHN BOISI, NATHAN OBEY, Consolidated Plaintiffs-Appellees,

v.

GRUBHUB INC., DBA Seamless, POSTMATES INC., UBER TECHNOLOGIES, INC., in its own right and as parent of wholly owned subsidiary Uber Eats, Defendants-Appellants. *

* The Clerk of Court is directed to amend the caption as set forth above. 23-521-cv (L) Davitashvili v. Grubhub

On Appeal from the United States District Court for the Southern District of New York

ARGUED: DECEMBER 15, 2023 DECIDED: MARCH 13, 2025

Before: CABRANES, SULLIVAN, and PÉREZ, Circuit Judges.

Grubhub Inc., Postmates Inc., and Uber Technologies, Inc. (jointly, “Defendants”) moved to compel arbitration of a putative antitrust class action. The question presented is whether the United States District Court for the Southern District of New York (Lewis A. Kaplan, Judge) erred in denying the motion of Defendants to compel arbitration. We consider (1) whether an agreement to arbitrate was made between Defendants and Plaintiffs; (2) whether, in the circumstances presented, arbitrability is an issue for the Court or the arbitrator to resolve; and (3) whether the relevant arbitration clauses are enforceable.

Defendants provide online “platforms”—websites or mobile applications—for ordering restaurant meals. Customers place restaurant orders on a platform for pickup or delivery, and restaurants use the platform to fill those orders. The restaurants agree not to sell meals at lower prices “off-platform”—that is, through channels other than Defendants’ web and mobile applications. These agreements are known as no-price competition clauses, or “NPCCs.”

This appeal arises from a putative class action against Defendants alleging violations of Section 1 of the Sherman Antitrust Act of 1890 and its state analogues. The case is brought by three classes of restaurant customers: customers who purchased “takeout” or delivery goods directly from a restaurant subject to a Defendant’s NPCC; customers who purchased dine-in goods from a restaurant subject to a Defendant’s NPCC; and customers who purchased goods through a non-defendant’s platform from a restaurant subject to a Defendant’s NPCC.

Defendants moved to compel arbitration for the customers who have used Defendants’ platforms (jointly, “Plaintiffs”), on the basis of the arbitration clauses in Defendants’ respective “Terms of Use.” On March 16, 2023, the District Court denied Defendants’ motion to compel arbitration, holding that the scope of the arbitration clauses presented issues for the Court, rather than the arbitrator, to resolve, and that they did not apply to Plaintiffs’ claims because the claims lacked “any nexus” to Defendants’ Terms of Use. This appeal followed.

We now AFFIRM the District Court’s order in part insofar as it ruled that the threshold question of arbitrability for Plaintiffs’ claims

3 against Grubhub is for the court to decide and that Grubhub’s arbitration clause does not apply to Plaintiffs’ antitrust claims against Grubhub, REVERSE the District Court’s order in part insofar as it ruled that Grubhub failed to establish that it formed an agreement to arbitrate with Plaintiffs and that the threshold question for Plaintiffs’ claims against Uber and Postmates is for the court to decide, and REMAND the cause for further proceedings consistent with this opinion.

Judge Pérez concurs in full in the judgment of the Court and files a separate opinion. Judge Sullivan concurs in part and dissents in part, concurring with the judgment of the Court with respect to Parts II-A and II-B and dissenting with respect to Part II-C.

ZACHARY D. TRIPP, Washington, DC (David J. Lender, Eric S. Hochstadt, New York, NY, on the brief), Weil, Gotshal & Manges LLP, Washington, DC for Defendant-Appellant Grubhub Inc.

ADAM G. UNIKOWSKY, New York, NY (Elizabeth B. Deutsch, on the brief), Jenner & Block LLP, Washington, DC for Defendants- Appellants Uber Technologies, Inc. and Postmates Inc.

4 STEPHEN LAGOS, New York, NY (Edward Normand, Velvel (Devin) Freedman, on the brief), Freedman Normand Friedland LLP, New York, NY for Plaintiffs-Appellees.

JOSÉ A. CABRANES, Circuit Judge:

Grubhub Inc., Postmates Inc., and Uber Technologies, Inc. (jointly “Defendants”) moved to compel arbitration of a putative antitrust class action. The question presented is whether the United States District Court for the Southern District of New York (Lewis A. Kaplan, Judge) erred in denying the motion of Defendants to compel arbitration. We consider (1) whether an agreement to arbitrate was made between Defendants and Plaintiffs; (2) whether, in the circumstances presented, arbitrability is an issue for the Court or the arbitrator to resolve; and (3) whether the relevant arbitration clauses are enforceable.

Defendants provide online “platforms”—websites or mobile applications—for ordering restaurant meals. 1 Customers place

1 Grubhub defines a “Mobile Application” as a “software to access Grubhub’s websites, technology platforms, and related online and mobile services via a mobile device.” Appendix (“A”) 134. While Uber and Postmates do not define the term “mobile application” in their Terms of Use, see infra note 5, we understand that the Uber and Postmates mobile applications have the same function and have similar characteristics as the Grubhub mobile application. “The term online platform is not defined in [any]

5 restaurant orders on a platform for pickup or delivery, and restaurants use the platform to fill those orders. The restaurants agree not to sell meals at lower prices “off-platform”—that is, through channels other than Defendants’ web and mobile applications. These agreements are known as no-price competition clauses, or “NPCCs.” 2

This appeal arises from a putative class action against Defendants alleging violations of Section 1 of the Sherman Antitrust Act of 1890 and its state analogues. 3 The case is brought by three classes of restaurant customers: customers who purchased “takeout” or delivery goods directly from a restaurant subject to a Defendant’s NPCC; customers who purchased dine-in goods from a restaurant subject to a Defendant’s NPCC; and customers who purchased goods through a non-defendant’s platform from a restaurant subject to a Defendant’s NPCC. 4

Defendants moved to compel arbitration for the customers who have used Defendants’ platforms (jointly “Plaintiffs”), on the basis of

federal statute. An online platform generally refers to any computer application or service that provides digital content and services on the internet.” CONG. RSCH. SERV., R47662, DEFINING AND REGULATING ONLINE PLATFORMS (2023). 2 A-20 (¶ 1). 3 A-20 (¶ 1), 49-73 (¶¶ 188-214). 4 A-65-66 (¶¶ 173-75).

6 the arbitration clauses in Defendants’ respective “Terms of Use.” 5 On March 16, 2023, the District Court denied Defendants’ motion to compel arbitration, holding that the scope of the arbitration clauses presented issues for the Court, rather than the arbitrator, to resolve, and that they did not apply to Plaintiffs’ claims because the claims lacked “any nexus” to Defendants’ Terms of Use. 6 This appeal followed.

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131 F.4th 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davitashvili-v-grubhub-ca2-2025.