Gambo v. Lyft, Inc.

District Court, District of Columbia·Decided November 16, 2022·No. Civil Action No. 2022-1726·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

NICHOLAS GAMBO, Plaintiff,

v. Civil Action No. 22-1726 (RDM)

LYFT, INC., et al., Defendants.

MEMORANDUM OPINION AND ORDER Plaintiff Nicholas Gambo alleges that he rented a Lyft scooter using the Lyft application on his cellphone and, while riding the scooter, the stem detached from the deck, causing Gambo to fall and seriously injury himself. Dkt. 1-1 at 12–13. Gambo filed this action in the Superior Court for the District of Columbia in May 2022 against Lyft, Inc., Lyft Bikes and Scooters, LLC, Segway Inc., Segway Robotics Inc., Ninebot Inc., and Xiaomi USA LLC. Dkt. 1-1 at 7–8. Shortly thereafter, Lyft, Inc. and Lyft Bikes and Scooters, LLC (collectively, “Lyft”) removed the action to this Court, Dkt. 1 at 3, and Lyft then moved to compel arbitration and to dismiss Plaintiff’s claims against it or to stay proceedings pending arbitration. Dkt. 17 at 1–2. Plaintiff opposes that motion. Dkt. 25 at 1.

For the following reasons, the Court will GRANT Lyft’s motion, will COMPEL arbitration, and will STAY Plaintiff’s claims against Lyft pending further order of the Court.

I. BACKGROUND

Lyft, Inc. “operates a mobile device-based software platform that allows users,” among other things, “to rent electric scooters.” Dkt. 17-2 at 3 (McGowan Decl. ¶ 5). According to the Declaration of Ryan McGowan, a staff engineer at Lyft, Nicholas Gambo first created a Lyft

account on January 15, 2018. Id. at 4–5 (McGowan Decl. ¶ 15). “Users who created a Lyft account on or about January 15, 2018, like Plaintiff Nicholas Gambo, were presented with a screen with a checkbox seeking assent to the statement ‘I understand and agree to Lyft’s Terms of Service and Privacy Policy.” Id. at 5 (McGowan Decl. ¶ 16). The McGowan Declaration include the following image, which “depicts what a user would likely have seen on her/his screen when creating an account on or about January 15, 2018.” Id.

As the photograph shows, the words “Terms of Service and Privacy Policy” were written in bright pink and included a hyperlink “to the September 30, 2016 Lyft Terms of Service Agreement that was in effect at the time; users had the opportunity to scroll through and review

those Terms of Service.” Id. at 6 (McGowan Decl. ¶ 17). And, “[i]n order to click ‘Next’ and proceed to use the Lyft App and the Lyft Platform, users were required to check the checkbox.” Id. at 6 (McGowan Decl. ¶ 18). This type of electronic agreement is known as a “clickwrap” agreement, Dkt. 17-1 at 7—that is, an agreement “in which an internet user accepts a website’s terms of use by clicking an ‘I agree’ or ‘I accept’ button, with a link to the agreement readily available,” Seldon v. Airbnb, Inc., 2016 WL 6476934, at *4 (D.D.C. Nov. 1, 2016), aff’d, 4 F.4th 148 (D.C. Cir. 2021). Here, the user was required to click on a box representing that he understood and agreed to the Terms of Service, and those Terms of Service were accessible by merely clicking on the highlighted link appearing in that same sentence. “Because all scooter rentals must be made through the Lyft App, this registration process means that users could not rent a Lyft scooter without first downloading the Lyft App and accepting the Terms of Service Agreement.” Dkt. 17-2 at 6. (McGowan Decl. ¶ 19).

The very first page of the September 30, 2016 Lyft Terms of Service, in turn, stated that “[t]hese terms of service constitute a legally binding agreement . . . between you and Lyft, Inc. . . . governing your use of the Lyft application, website, and technology platform.” Dkt. 17- 3 at 2. Immediately below that clause, the Terms of Service advised users as follows:

THIS AGREEMENT CONTAINS PROVISIONS THAT GOVERN HOW CLAIMS YOU AND LYFT HAVE AGAINST EACH OTHER CAN BE BROUGHT (SEE SECTION 17 BELOW). THERE PROVISIONS WILL, WITH LMITED EXCEPTION, REQUIRE YOU TO SUBMIT CLAIMS YOU HAVE AGAINST LYFT TO BINDING AND FINAL ARBITRATION ON AN INDIVIDUAL BASIS, NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY CLASS, GROUP OR REPRESENATIVE ACTION OR PROCEEEDING, AS A DRIVER, OU HAVE AN OPPORTUNITY TO OPT OUT OF ARBITRATION WITH RESPECT TO CERTAIN CLAIMS AS PROVIDED IN SECTIN 17.

Id. The phrase “SEE SECTION 17 BELOW” appears in bright pink and is hyperlinked to the section of the Terms of Service containing the arbitration provisions. Dkt. 17-1 at 9; Dkt. 17-3 at 2, 13–14.

Section 17, which is captioned “Dispute Resolution and Arbitration Agreement,” explains that the user “AND LYFT MUTUALLY AGREE TO WAIVE [THEIR] RESPECTIVE RIGHTS TO RESOLUTION OF DISPUTES IN A COURT OF LAW BY A JUDGE OR JURY AND AGREE TO RESOLVE ANY DISPUTE BY ARBITRATION” and that “[e]xcept as expressly provided . . . ALL DISPUTES AND CLAIMS BETWEEN” the parties “SHALL BE EXCLUSIVELY RESOLVED BY BINDING ARBITRATION.” Id. at 13-14. Among an array of other types of claims, this includes claims relating to “the Lyft Platform, the Services, any other goods or services made available through the Lyft Platform” and all “federal and state statutory and common law claims.” Id. at 14. The arbitration clause delegates authority to “the arbitrator” to resolve “[a]ll disputes concerning the arbitrability of a Claim (including disputes about the scope, applicability, enforceability, revocability or validity of the Arbitration Agreement).” Id. at 14. Although the arbitration clause contains certain exceptions, id. at 17– 18, none applies here. Finally, the arbitration clause provides that “[t]his agreement to arbitrate . . . is governed by the Federal Arbitration Act and survives after the Agreement terminates or your relationship with Lyft ends.” Id. at 14.

According to the McGowan Declaration, “[a]fter accepting the September 30, 2016 version of the Terms of Service, Plaintiff Gambo used the Lyft Platform to rent scooters on 54 separate occasions.” Dkt. 17-2 at 6 (McGowan Decl. ¶ 20). Plaintiff alleges that on one of these occasions, at approximately 4:14 a.m. on May 22, 2019, he “rented a Lyft Scooter [using] his phone application and . . . was riding [it] on K Street, SW, at or near its intersection with 3rd

Street, SW, in Washington, D.C.” Dkt. 1-1 at 12 (Compl. ¶ 14). He maintains that “[s]uddenly and without warning, and while [he was] exercising due care and caution for his safety, . . . the stem of the [s]cooter instantaneously separated from the deck, causing [him] to fall forward, resulting in his face and head striking the ground and causing significant injury to his person.” Id. at 12–13 (Compl. ¶ 18).

On May 17, 2022, before filing this lawsuit, Plaintiff agreed to a revised version of Lyft’s Terms of Service, dated April 1, 2021. Dkt. 17-2 at 8 (McGowan Decl. ¶ 26). Like the 2016 Terms of Service, the 2021 version notifies users that the “Terms of Service constitute a legally binding agreement” between the user and Lyft. Id. at 7 (McGowan Decl. ¶ 23). And, like the 2016 Terms of Service, the 2021 Terms of Service includes language on the first page of the agreement highlighting the arbitration clause, id.; see also Dkt. 17-4 at 2 (April 1, 2021 Terms of Service), and, then, later in the agreement, includes a detailed arbitration clause, Dkt. 17-4 at 17- 24. Unlike the 2016 Terms of Service, however, the 2021 Terms of Service is offered as a “scrollwrap” agreement, see Dkt. 17-1 at 10—that is, an agreement that “is like a ‘clickwrap,’ but [where] the user is presented with the entire agreement,” which the user can scroll through, and an “I Agree” button to click on to indicate the user’s assent, Selden, 2106 WL 6476934, at *4. The following image depicts the screen as it would initially appear, including the reference and hyperlink to the arbitration clause, as it appears on the first page:

Dkt. 17-2 at 7 (McGowan Decl. ¶ 23).

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