Jones v. Starz Entertainment, LLC

129 F.4th 1176
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 28, 2025
Docket24-1645
StatusPublished
Cited by3 cases

This text of 129 F.4th 1176 (Jones v. Starz Entertainment, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. Starz Entertainment, LLC, 129 F.4th 1176 (9th Cir. 2025).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

KIANA JONES, No. 24-1645 D.C. No. Plaintiff - Appellant, 5:24-cv-00206- KK-DTB v.

STARZ ENTERTAINMENT, LLC, OPINION

Defendant - Appellee.

Appeal from the United States District Court for the Central District of California Kenly Kiya Kato, District Judge, Presiding

Argued and Submitted December 4, 2024 Pasadena, California

Filed February 28, 2025

Before: Ronald M. Gould, Richard R. Clifton, and Gabriel P. Sanchez, Circuit Judges.

Opinion by Judge Clifton 2 JONES V. STARZ ENTERTAINMENT, LLC

SUMMARY*

Arbitration

The panel affirmed the district court’s decision denying Kiana Jones’s petition under the Federal Arbitration Act to compel individual arbitration against Starz Entertainment, LLC, a video streaming provider, pursuant to the Starz Terms of Use. Jones, along with thousands of other claimants represented by the same law firm, initiated dispute- resolution proceedings against Starz, alleging violations of federal and state privacy laws. The arbitration provider, Judicial Arbitration and Mediation Services, or JAMS, ordered consolidation of these filings to be presided over by a single arbitrator. The panel held that Jones was not a “party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate,” as required by 9 U.S.C. § 4, because Starz never failed, neglected, or refused to arbitrate. Distinguishing Heckman v. Live Nation Ent., Inc., 120 F.4th 670 (9th Cir. 2024), the panel held that an arbitration provider’s consolidation of numerous identical filings pursuant to its own rules as incorporated by the parties’ agreement, as opposed to class or representative arbitration, did not present a gateway question of arbitrability for the courts to address. The panel held that the Federal Arbitration Act did not allow Jones, as the party seeking arbitration, to raise the

* This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. JONES V. STARZ ENTERTAINMENT, LLC 3

argument that the Terms of Use were unconscionable to the extent that they allowed pre-arbitration consolidation by JAMS.

COUNSEL

Kiran N. Bhat (argued), Keller Postman LLC, Coral Gables, Florida; Nicole Berg and Patrick A. Huber, Keller Postman LLC, Chicago, Illinois; Warren D. Postman and Albert Y. Pak, Keller Postman LLC, Washington, D.C.; Jae K. Kim, Lynch Carpenter LLP, Pasadena, California; for Plaintiff- Appellant. Jeffrey E. Tsai (argued), DLA Piper LLP, San Francisco, California; Angela C. Agrusa, DLA Piper LLP, Los Angeles, California; David Horniak, DLA Piper LLP, Washington, D.C.; for Defendant-Appellee. Robert E. Dunn, Collin J. Vierra, and Isaac J. Weitzhandler, Eimer Stahl LLP, Campbell, California; Jonathan D. Urick, United States Chamber Litigation Center, Washington, D.C.; for Amicus Curiae the Chamber of Commerce of the United States of America. 4 JONES V. STARZ ENTERTAINMENT, LLC

OPINION

CLIFTON, Circuit Judge:

Plaintiff-Appellant Kiana Jones appeals the district court’s denial of her motion to compel arbitration against Defendant-Appellee, Starz Entertainment, LLC (“Starz”). Jones, along with thousands of other claimants represented by the same law firm, initiated dispute-resolution proceedings against Starz pursuant to the Starz Terms of Use (“Terms”), alleging violations of federal and state privacy laws. The arbitration provider designated by the Terms, Judicial Arbitration and Mediation Services (“JAMS”), ordered consolidation of these filings to be presided over by a single arbitrator. The arbitration has since remained stalled in an apparent procedural stalemate, after a substantial number of the claimants repeatedly disqualified arbitrators appointed by JAMS. Jones petitioned the district court to compel individual arbitration. The district court denied the petition, holding that Jones was not “aggrieved” within the meaning of the Federal Arbitration Act (“FAA”) and that the court’s limited role did not extend to the procedural issue of consolidation. The FAA provides that a “party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate” may petition a federal district court to compel arbitration. 9 U.S.C. § 4. Jones contends that she was “aggrieved” by the consolidation of arbitration filings because it amounted to Starz’s refusal to engage in an individual, bilateral arbitration as, she argues, is required by the Terms. In the alternative, Jones argues that the Terms are unconscionable to the extent that they allow pre-arbitration consolidation. Jones requests that we use authority under § 4 to excise the JONES V. STARZ ENTERTAINMENT, LLC 5

allegedly unconscionable provision and compel arbitration in accordance with such modified terms. We affirm the decision of the district court. We agree with the district court that Starz has not failed, neglected, or refused to arbitrate and that the alternative requests presented by Jones are not justified or authorized under FAA § 4. I. Background and Procedural History Starz is a media and entertainment company that offers an online video streaming service. Jones created a Starz account and used the Starz platform to stream video content. By signing up for this service, she agreed to Starz’s Terms of Use, which contained a mandatory arbitration clause: “All controversies, disputes or claims arising out of or relating to these Terms of Use will be determined pursuant to the mediation and arbitration procedures of JAMS . . . in accordance with the comprehensive rules and procedures . . . of JAMS (‘JAMS Rules’), as modified by these Terms of Use.” The Terms further stated: “You and Starz agree that each may bring claims against the other only in your or its individual capacity, and not as a plaintiff or class member in any purported class or representative proceeding.” Jones initiated the dispute-resolution process in January 2023 by submitting a Demand for Arbitration Form to JAMS, alleging that Starz violated the Video Privacy Protection Act and California Civil Code § 1799.3 by disclosing her identity and the videos she watched to third- party companies like Meta and Google. Jones’s arbitration demand was one of 100,978 identical demands, all submitted by Keller Postman LLC (“Keller”), the law firm representing Jones. Four months later, Keller wrote to JAMS requesting 6 JONES V. STARZ ENTERTAINMENT, LLC

individual mediation on behalf of 7,300 clients including Jones, in compliance with the Terms’ requirement that the parties endeavor to resolve controversies through JAMS- administered mediation prior to commencing arbitration. The mediation reached an impasse due to the parties’ disagreement about how to allocate mediation fees. Keller subsequently sought to initiate 7,300 individual arbitrations, including one for Jones, to resolve that disagreement as well as the underlying dispute concerning Starz’s alleged data breach. Each arbitration requires a filing fee of $2,000, with the arbitration-initiating consumer party’s payment capped at $250 by the JAMS Consumer Minimum Standards. This arrangement of 7,300 separate arbitrations would have resulted in charges to Starz totaling $12,775,000 ($1,750 multiplied by 7,300 filings) in initiation fees alone.

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129 F.4th 1176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-starz-entertainment-llc-ca9-2025.