Keena v. Groupon, Inc.

192 F. Supp. 3d 630, 2016 U.S. Dist. LEXIS 80451, 2016 WL 3450828
CourtDistrict Court, W.D. North Carolina
DecidedJune 21, 2016
DocketCIVIL ACTION NO. 3:15-CV-00520-GCM
StatusPublished
Cited by4 cases

This text of 192 F. Supp. 3d 630 (Keena v. Groupon, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keena v. Groupon, Inc., 192 F. Supp. 3d 630, 2016 U.S. Dist. LEXIS 80451, 2016 WL 3450828 (W.D.N.C. 2016).

Opinion

ORDER

Graham C. Mullen, United States District Judge.

THIS MATTER is before the Court on Defendant Groupon Inc.’s Motion to Compel Arbitration or in the Alternative Dis[633]*633miss Pursuant .to Rule 12(b)(6). (Doc. No. 21). Plaintiff filed a Response in Opposition on May 9, 2016 (Doc. No. 30), and Defendant filed its Reply on May 31 (Doc. No. 31). Accordingly,. Defendant’s Motion . is ripe for disposition. For the following reasons, Defendant’s Motion to Compel Arbitration will be GRANTED, and its. Motion to Dismiss Pursuant to Rule 12(b)(6) will be DENIED AS MOOT. Plaintiff also filed a Motion to Defer Consideration of Defendant’s Motion to Dismiss (Doc. No. 25), which will be DENIED AS MOOT.

BACKGROUND

Defendant is a web-based company that partners with retail businesses and offers the businesses’ products and services for a discounted price if purchased from Defendant’s website. (Doc: No. 30 at 1). On February 1, 2015, Plaintiff purchased a voucher for massage services through Defendant’s website to be rendered by the company Mutatio Wellness. (Doc. No. 1 ¶ 6). However, Plaintiff was unable to contact Mutatio Wellness to schedule the massage. (Id. at ¶ 9). Plaintiff requested a refund from Defendant, and Defendant refunded Plaintiffs purchase by crediting her account with “Groupon Bucks,” which can only be used to make purchases on Defendant’s website. (Id. at ¶ 11).

Before purchasing the massage voucher through Defendant’s website, Plaintiff acknowledged and accepted Defendant’s Terms of Use, including its arbitration provision, on two separate occasions. (Doc. No. 22 at 2-3). First, in order to make purchases on Groupon, Plaintiff was required to create an account. She entered her name, email address, and password, and agreed to Defendant’s Terms of Use by clicking a box immediately next to the words “I agree to the Terms of Use and Privacy Statement.” (Doc. No. 22-1, Exhibit 1 ¶ 4). The words “Terms of Use” appeared as a prominent blue hyperlink that linked to the full version of Defendant’s Terms of Use. (Id. at ¶ 6). Second, when Plaintiff purchased the massage voucher, she was required to click a button that said “Complete Order” in order to complete the purchase. (Id. at ¶ 8). Directly above the “Complete Order” button was a sentence stating: “[b]y clicking ‘Complete Order’ I accept the current Terms and Conditions and Privacy Policy.” (Id. at ¶ 9). The words “Terms and Conditions” were again a blue hyperlink that linked to Defendant’s Terms of Use. (Id.)

The version of Defendant’s Terms of Use that was in effect in 2015 was an eight page agreement that included an arbitration provision on the seventh page. (Doc. No. 30, Exhibit B at 7). The arbitration provision was bolded and listed under a blue heading entitled “Dispute Resolution.” (Id.) The provision stated:

Except as specifically stated herein, any dispute or claim between you and Groupon arising out of, or relating in any way to, the Terms of Use, the Site or your use of the Site, or any Products, Merchant Offerings or services offered or distributed through the Site (“Disputes”) shall be resolved exclusively by final, binding arbitration ... By virtue of this Agreement (defined below), you and Groupon are each giving up the right to go to court and have a Dispute heard by a judge or jury ....

(Id.) (emphasis in original). The provision established that Illinois law, the Federal Arbitration Act, and the American Arbitration Association rules would govern any disputes. (Id.) It also guaranteed that Defendant would reimburse arbitration fees up to $10,000 for non-frivolous disputes, and that Defendant would not seek attorney fees or arbitration costs for non-frivolous disputes. (Id.) Additionally, the arbitration agreement contained a class action waiver, under which the parties agreed [634]*634that all disputes would be arbitrated on an individual basis. (Id.)

Plaintiff filed this suit on October 29, 2015, alleging breach of contract, breach of the covenant of good faith and fair dealing, fraud and deceit, unjust enrichment, unfair and deceptive trade practices, fraudulent inducement, and negligence. (Doc. No. 1). On April 8, 2016, Defendant filed a Motion to Compel Arbitration or in the Alternative to Dismiss Pursuant to Rule 12(b)(6). (Doc. No. 21). Plaintiff then filed a Rule 56(d) Motion to Defer Considering Defendant’s Motion to Dismiss on April 29, 2016, arguing that the Court should defer considering Defendant’s Motion until summary-judgment so that Plaintiff could obtain discovery materials. (Doc. No. 25). Plaintiff also filed a Response in opposition to Defendant’s Motion to Compel (Doc. No. 30), and Defendant then filed a Reply (Doc. No. 31).

STANDARD OF REVIEW

The Federal Arbitration Act (“FAA”) applies to provisions in “a contract evidencing a transaction involving commerce.” 9 U.S.C. § 2. Under the FAA, agreements to arbitrate are “valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.” Id. The Supreme Court has described the FAA as “a liberal federal policy favoring arbitration,” and stated that arbitration agreements must be enforced according to their terms. AT&T Mobility LLC v. Concepcion, 563 U.S. 333, 339, 131 S.Ct. 1740, 179 L.Ed.2d 742 (2011) (citation omitted). As a result, this Court must compel arbitration if: “(i) the parties have entered into a valid agreement to arbitrate, and (ii) the dispute in question falls within the scope of the arbitration agreement.” Chorley Enter., Inc. v. Dickey’s Barbecue Rest., Inc., 807 F.3d 553, 563 (4th Cir.2015).

In order to decide whether parties have an enforceable agreement to arbitrate a certain matter, courts apply state law principles that govern the formation of contracts. First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938, 944, 115 S.Ct. 1920, 131 L.Ed.2d 985 (1995). In the present case, Illinois contract law applies because Defendant’s Terms of Use includes a choice of law provision' stating that any disputes regarding Groupon’s services will be governed by Illinois law. (Doc. No. 22-1, Exhibit 1, Exhibit C, at 12). See Allen v. Lloyd’s of London, 94 F.3d 923, 928 (4th Cir.1996) (noting that “the Supreme Court has consistently accorded choice of forum and choice of law provisions presumptive validity”). Under Illinois law, “the objective in interpreting the contract is to ascertain and give effect to the intent of the parties” based on “the objective manifestations of the parties, including the language they used in the contract.” Gore v. Alltel Commc’ns, LLC, 666 F.3d 1027, 1033 (7th Cir.2012) (citing Carey v. Richards Bldg. Supply Co., 367 Ill.App.3d 724, 305 Ill.Dec. 492, 856 N.E.2d 24, 27 (2006)).

DISCUSSION

A. Traditional preemption doctrine applies

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Cite This Page — Counsel Stack

Bluebook (online)
192 F. Supp. 3d 630, 2016 U.S. Dist. LEXIS 80451, 2016 WL 3450828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keena-v-groupon-inc-ncwd-2016.