Grosvenor v. Qwest Corporation

733 F.3d 990, 2013 WL 4083273, 2013 U.S. App. LEXIS 16873
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 14, 2013
Docket12-1095
StatusPublished
Cited by7 cases

This text of 733 F.3d 990 (Grosvenor v. Qwest Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grosvenor v. Qwest Corporation, 733 F.3d 990, 2013 WL 4083273, 2013 U.S. App. LEXIS 16873 (10th Cir. 2013).

Opinion

LUCERO, Circuit Judge.

Qwest Corporation and Qwest Broadband Services, Inc. (collectively, “Qwest”) seek to appeal a district court order granting partial summary judgment. After Richard Grosvenor filed this putative class action, Qwest moved to compel arbitration under the Federal Arbitration Act (“FAA”), 9 U.S.C. §§ 1 et seq. The district court denied Qwest’s motion and scheduled a trial to determine whether the parties had reached an agreement to arbitrate pursuant to 9 U.S.C. § 4. Both parties then moved for partial summary judgment. Qwest argued that the parties had entered into an arbitration agreement and that “Grosvenor should be compelled to arbitrate under the terms” of that agreement. However, Qwest did not make another request for an order to compel arbitration. Instead, Qwest indicated that it “will move for summary judgment on [another issue] and to compel the agreed-upon arbitration.” In Grosvenor’s motion for partial summary judgment, he argued *992 that the agreement to arbitrate was illusory. The district court granted both motions in a single order, concluding that the parties entered into an agreement, but that the agreement was illusory and unenforceable.

Qwest argues that we possess interlocutory appellate jurisdiction to review the district court’s summary judgment ruling because it constitutes “an order ... denying a petition under section 4 of [the FAA] to order arbitration to proceed.” 9 U.S.C. § 16(a)(1)(B). However, we have previously held that “in order to properly invoke appellate jurisdiction under the [FAA], the movant must either explicitly move to stay litigation and/or compel arbitration pursuant to the [FAA], or it must be unmistakably clear from the four corners of the motion that the movant seeks relief provided for in the FAA.” Conrad v. Phone Directories Co., 585 F.3d 1376, 1379 (10th Cir.2009). Because we conclude Qwest has not satisfied this standard, we dismiss the appeal.

I

In December 2009, Grosvenor filed a complaint alleging that Qwest violated its “Price for Life Guarantee” by raising the price for internet servicq after he signed up for the program. Grosvenor asserted claims for breach of contract, promissory estoppel, unjust enrichment, and violation of the Colorado Consumer Protection Act, Colo.Rev.Stat. §§ 6-1-101, et seq. He sought to represent a proposed class of certain Qwest internet customers.

Qwest responded with a motion to compel arbitration and to stay proceedings, filed pursuant to 9 U.S.C. §§ 3 and 4. It cited to section 17 of its “Subscriber Agreement,” which states:

Dispute Resolution and Arbitration; Governing Law. PLEASE READ THIS SECTION CAREFULLY. IT AFFECTS RIGHTS THAT YOU MAY OTHERWISE HAVE. IT PROVIDES FOR RESOLUTION OF DISPUTES THROUGH MANDATORY ARBITRATION WITH A FAIR HEARING BEFORE A NEUTRAL ARBITRATOR INSTEAD OF IN A COURT BY A JUDGE OR JURY OR THROUGH A CLASS ACTION.
(a) Arbitration Terms. You agree that any dispute or claim arising out of or relating to the Services, Equipment, Software, or this Agreement (whether based in contract, tort, statute, fraud, misrepresentation or any other legal theory) will be resolved by binding arbitration. The sole exceptions to arbitration are that either party may pursue claims: (1) in small claims court that are within the scope of its jurisdiction, provided the matter remains in such court and advances only individual (non-class, non-representative, non-consolidated) claims; and (2) in court if they relate solely to the collection of any debts you owe to Qwest.

The agreement further provides that arbitration will be conducted by the American Arbitration Association and that the FAA will govern the proceedings. In response to the motion, Grosvenor averred that, to the best of his knowledge, he had never seen the Subscriber Agreement and had never been advised of its existence.

Qwest then submitted competing evidence showing that Grosvenor first ordered internet service from Qwest in 2006 under a “elick-to-accept” process. Before completing installation of Quest’s software, a customer is presented with a “LEGAL AGREEMENTS” screen that advises him to read the terms of an agreement, “including arbitration,” at a website address. The screen advises: “Your click on T accept’ is an electronic signature to the agreements and contracts set out herein.” *993 A customer cannot install the software unless he clicks “I accept.” Once a customer installs the software, Qwest automatically generates and sends a “Welcome Letter” to the customer, stating that the service is offered pursuant to the terms of a Subscriber Agreement. The letter provides a website address — the same address listed during the installation process described above — from which the customer can access the Subscriber Agreement, and states that the customer should call Qwest to cancel service within thirty days if he disagrees with those terms. When Grosvenor upgraded his internet service in 2007, Qwest sent a similar “Welcome Letter.”

The district court denied Qwest’s motion to compel arbitration and its motion for a stay. It concluded that “Grosvenor has raised material questions of fact as to contract formation, including: whether he received the Subscriber Agreement, and whether he received the Welcome Letters.” The court ordered the parties to “schedule a trial to determine whether a valid arbitration agreement exists.” It also entered a scheduling order to govern “the formation proceedings on Defendant’s Motion to Compel Arbitration.”

Following discovery, Qwest filed a motion for partial summary judgment on the issue of whether Grosvenor had entered into an arbitration agreement. It argued that because the undisputed facts established contract formation and all claims at issue were “subject to mandatory arbitration under the terms of the Agreement and the Federal Arbitration Act ... Grosvenor should be compelled to arbitrate under the terms of his Subscriber Agreement.” Qwest requested the court “enter summary judgment that Qwest and Mr. Grosvenor entered into an arbitration agreement, as set forth in the Subscriber Agreement.” Qwest’s motion noted that Grosvenor had also “argued that the arbitration clause was unconscionable under state law by virtue of its class action waiver” in prior briefing. Qwest stated that the argument had been foreclosed by a recent Supreme Court case and that it “will move for summary judgment on the unconscionability issues and to compel the agreed-upon arbitration.”

Grosvenor also moved for partial summary judgment, arguing that the Subscriber Agreement is illusory because Qwest “reserved to itself the unfettered right to amend” the contract. He pointed to section 4 of the Subscriber Agreement, which provides:

(a) at any time, effective upon posting to www.qwest.com/legal or any written notice to you, including e-mail [Qwest may] ...

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Cite This Page — Counsel Stack

Bluebook (online)
733 F.3d 990, 2013 WL 4083273, 2013 U.S. App. LEXIS 16873, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grosvenor-v-qwest-corporation-ca10-2013.