Dunbar v. Airbnb, Inc.

CourtDistrict Court, D. Hawaii
DecidedApril 1, 2020
Docket1:19-cv-00648
StatusUnknown

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

Bluebook
Dunbar v. Airbnb, Inc., (D. Haw. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF HAWAII

JOHN P. DUNBAR, Civ. No. 19-00648 JMS-WRP

Plaintiff, ORDER GRANTING DEFENDANT AIRBNB, INC.’S MOTION TO vs. COMPEL ARBITRATION, ECF NO. 4, AND DISMISSING ACTION AIRBNB, INC.,

Defendant.

ORDER GRANTING DEFENDANT AIRBNB, INC.’S MOTION TO COMPEL ARBITRATION, ECF NO. 4, AND DISMISSING ACTION

I. INTRODUCTION Airbnb, Inc. (“Defendant”) moves to compel arbitration and to stay litigation of this action. ECF No. 4 at PageID #14-15. For the reasons discussed below, the motion is GRANTED. Further, because the entire dispute is subject to arbitration, the court DISMISSES the action (rather than staying it). II. BACKGROUND A. Factual Background For purposes of this motion, the pertinent facts are undisputed. John P. Dunbar (“Plaintiff”) operated a bed and breakfast as a registered Airbnb host. ECF No. 4-1 at PageID #23; ECF No. 1 at PageID #2. Plaintiff alleges that Defendant defamed him when, beginning in December 2017, it “posted a [false] statement on the Internet and disseminated same to multiple third persons” that Plaintiff was “removed [as an Airbnb] host per domestic violence.” ECF No. 1 at

PageID #2-3 (emphasis removed). When Plaintiff first registered to become a host in 2012, he consented to Defendant’s terms of service in effect at that time. ECF No. 4-1 at PageID #24;

see ECF No. 9 at PageID #117, 120. This 2012 version of the terms of service included an arbitration provision1 within a section titled “Dispute Resolution.” ECF No. 4-7 at PageID #66. The 2012 version, however, contained no separate clause specifying who would decide questions of arbitrability (a “delegation

clause”). See id. The 2012 version also included a “changes” provision permitting Plaintiff to reject any future changes to the dispute resolution section. Id.2

1 The 2012 arbitration provision states: “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 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 [intellectual property infringement].” ECF No. 4-7 at PageID #66.

2 The 2012 “changes” provision states: “[I]f Airbnb changes this ‘Dispute Resolution’ section after the date you first accepted these Terms (or accepted any subsequent changes to these Terms), you may reject any such change by sending us written notice (including by email to terms@airbnb.com) within 30 days of the date such change became effective . . . . By rejecting any change, you are agreeing that you will arbitrate any Dispute between you and Airbnb in accordance with the provisions of this ‘Dispute Resolution’ section as of the date you first accepted these Terms (or accepted any subsequent changes to these Terms).” ECF No. 4-7 at PageID #66.

2 Defendant updated the dispute resolution terms several times after Plaintiff’s initial registration through 2019. See ECF No. 4-2 at PageID #51-52;

ECF No. 4-4 at PageID #55. Plaintiff consented to each of these updated terms of service. See ECF No. 4-2 at PageID #52; ECF No. 4-4 at PageID #55; ECF No. 9 at PageID #117, 120.

The 2017 version of the terms of service was in effect at the time of Airbnb’s alleged defamation. See ECF No. 4-2 at PageID #52; ECF No. 9 at PageID #117, 120 (acknowledging that “Plaintiff agreed to the arbitration clause in general” after earlier quoting the version of the arbitration provision from the 2017

terms of service). Although other terms had changed, the arbitration provision was essentially unaltered from the 2012 terms of service. Compare ECF No. 4-7 at PageID #66, with ECF No. 4-8 at PageID #87.3 Likewise, the 2017 changes

3 The 2017 terms of service states in bold font, in part: “You and Airbnb mutually agree that any dispute, claim or controversy arising out of or relating to these Terms or the breach, termination, enforcement or interpretation thereof, or to the use of the Airbnb Platform, the Host Services, or the Collective Content (collectively, ‘Disputes’) will be settled by binding arbitration (the ‘Arbitration Agreement’).” ECF No. 4-8 at PageID #87 (reserving the parties’ rights to bring in court disputes about intellectual property and emergency injunctive relief in a separate subsection).

3 section was substantively identical to the 2012 terms of service. Compare ECF No. 4-7 at PageID #66, with ECF No. 4-8 at PageID #88.4

But unlike the 2012 version, the 2017 version added a delegation clause: “If there is a dispute about whether this Arbitration Agreement can be enforced or applies to our Dispute, you and Airbnb agree that the arbitrator

will decide that issue.” ECF No. 9 at PageID #117; accord ECF No. 4-8 at PageID #87 (bold font in original). And the 2017 terms of service, written in larger font, also used bold print to emphasize the arbitration provision and delegation clause. See ECF No. 4-8 at PageID #87. Moreover, the very beginning

of the terms, also in bold print, states: Please note: Section 19 of these Terms of Service contains an arbitration clause and class action waiver that applies to all Airbnb Members. If you reside in the United States, this provision applies to all disputes with Airbnb . . . . It affects how disputes with Airbnb are resolved. By accepting these Terms of Service, you agree to be bound by this arbitration clause and class action waiver. Please read it carefully.

4 The 2017 version states: “[I]f Airbnb changes this Section 19 (‘Dispute Resolution and Arbitration Agreement’) after the date you last accepted these Terms (or accepted any subsequent changes to these Terms), you may reject any such change by sending us written notice (including by email) within thirty (30) days of the date such change became effective . . . . By rejecting any change, you are agreeing that you will arbitrate any Dispute between you and Airbnb in accordance with the provisions of the ‘Dispute Resolution and Arbitration Agreement’ section as of the date you last accepted these Terms (or accepted any subsequent changes to these Terms).” ECF No. 4-8 at PageID #88.

4 Id. at PageID #68. The 2017 dispute resolution section purports to afford “a consumer-

friendly” arbitration process by adopting the American Arbitration Association’s (“AAA”) Consumer Arbitration Rules. Id. at PageID #87. The terms specify that these rules provide that “[t]he initial filing fee for the consumer is capped at $200,”

and “[t]he consumer gets to elect the hearing location and can elect to participate live, by phone, [or by] video conference,” among other things. Id. The 2017 terms of service departed from AAA rules concerning attorney fees and costs awards. In particular, the consumer is “entitled to seek an

award of attorney fees and expenses if [the consumer] prevail[s] in arbitration.” Id. at PageID #88. On the other hand, Defendant “agrees it will not seek, and hereby waives all rights it may have . . . . to recover attorneys’ fees and expenses if it

prevails in arbitration,” except when “the arbitrator determines that [the consumer’s] claim was frivolous or filed for the purpose of harassment.” Id. B. Procedural Background On December 5, 2019, Plaintiff filed a Complaint alleging a single claim of defamation against Defendant. See ECF No. 1 at PageID# 2-3. On

January 13, 2020, Defendants filed the instant Motion to Compel Arbitration and Stay Litigation, arguing that Plaintiff’s defamation claim is subject to arbitration

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