Swift v. Zynga Game Network, Inc.

805 F. Supp. 2d 904, 2011 U.S. Dist. LEXIS 85983, 2011 WL 3419499
CourtDistrict Court, N.D. California
DecidedAugust 4, 2011
DocketNo. C-09-5443 EDL
StatusPublished
Cited by32 cases

This text of 805 F. Supp. 2d 904 (Swift v. Zynga Game Network, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swift v. Zynga Game Network, Inc., 805 F. Supp. 2d 904, 2011 U.S. Dist. LEXIS 85983, 2011 WL 3419499 (N.D. Cal. 2011).

Opinion

ORDER GRANTING ZYNGA’S MOTION TO COMPEL ARBITRATION; GRANTING IN PART AND DENYING IN PART OTHER DEFENDANTS’ PARALLEL MOTION TO STAY; DENYING AS MOOT: (1) MOTION TO COMPEL DISCOVERY, (2) MOTION TO HEAR CROSS-MOTION TO STAY DISCOVERY ON SHORTENED TIME, (3) MOTION TO STAY DISCOVERY; GRANTING MOTION TO SEAL

ELIZABETH D. LAPORTE, United States Magistrate Judge.

I. Introduction

This is a purported class action brought by Plaintiff Rebecca Swift on behalf of herself and a class of similarly situated individuals who were allegedly deceived by Defendant Zynga Game Network, Inc.’s “special offer” transactions, developed by Defendants Acknowledge Inc. and Kitn Media USA, Inc. and offered in connection with Zynga’s free online video games. The complaint, originally filed on November 17, 2009 and amended on February 10, 2010, makes claims for unfair competition in violation of California Business & Professions Code section 17200, the California Consumer Legal Remedies Act, and Unjust Enrichment.

On May 5, 2011, Defendant filed a Motion to Compel Arbitration and Stay Litigation in light of the United States Supreme Court’s April 27, 2011 decision in AT & T Mobility LLC v. Concepcion, _ U.S. _, 131 S.Ct. 1740, 179 L.Ed.2d 742 (2011), which held that the Federal Arbitration Act preempts California law regarding the unconscionability of arbitration provisions restricting class action claims. Zynga claims that although the contractual arbitration provision governing the parties’ relationship did not allow it to compel arbitration at the time the case was [907]*907filed, in light of this recent change in the law arbitration should be compelled and the litigation stayed. Plaintiff opposes on the bases that she did not assent to the arbitration provision that Zynga now relies on, and even if she did the terms of service that contain the arbitration provision do not require arbitration of her claims, and Zynga waived its right to compel arbitration. For the following reasons and for the reasons discussed during oral argument on July 26, 2011, Zynga’s motion is GRANTED and the litigation stayed as to Zynga.

Defendants Acknowledge and Kitn (collectively the “Super Rewards Defendants”) filed a joinder to Zynga’s motion on the basis that they are agents with standing to enforce the arbitration clause, that the claims against them are closely related to the contract containing the arbitration clause, or alternatively that the litigation should be stayed as to them even if the arbitration provision only applies to Zynga. Plaintiff separately opposes joinder of the Super Rewards Defendants in Zynga’s motion. The Super Rewards Defendants’ Joinder and Request to Stay is GRANTED IN PART AND DENIED IN PART, and the litigation is STAYED as to all defendants.

Finally, the parties also filed a motion to compel discovery responses set to be heard on August 2, and a cross-motion to stay discovery and to hear the cross-motion on shortened time. These motions are MOOT in light of the Court’s decision to stay the litigation in favor of arbitration

II. Background Facts

Plaintiffs claims relate to harm she allegedly suffered after accepting certain “special offers” in connection with Zynga’s online video game applications that she was using within the Facebook network. FAC ¶¶ 6, 25, 36-41. Two different Terms of Service (“TOS”) agreements are arguably relevant to Ms. Swift’s claims.

First, in April 2009, (the timeframe that Plaintiff alleges that she accepted the fraudulent special offers at issue), the Yo-Ville TOS1 governed the terms and conditions of use of all Zynga products and contained the following arbitration provision:

You agree that any suit, action or proceeding arising out of or relating to these Terms of Use or any of the transactions contemplated herein or related to the Service or any contests or services thereon (including without limitation, statutory, equitable or tort claims) shall be resolved solely by binding arbitration before a sole arbitrator under the rules and regulations of the American Arbitration Association(“AAA”); provided, however, that notwithstanding the parties’ decision to resolve any and all disputes arising under these Terms of Use through arbitration, Zynga may bring an action in any court of applicable jurisdiction to protect its intellectual property rights or to seek to obtain injunctive relief or other equitable [sic] from a court to enforce the provisions of these Terms of Use or to enforce the decision of the arbitrator. The arbitration will be held in San Francisco ...

Hanley Decl. Ex. A p. 17. The YoVille TOS is silent as to whether parties may aggregate claims or pursue a class action arbitration.

The YoVille TOS further provides that Zynga had the right to change the terms at any time, that use after notice of the change in terms constitutes acceptance of the changes, and that the changes take effect after notice by posting the changes [908]*908on “Zynga’s Service or by any other method of notice Zynga deems appropriate.” Id. at 14. The first time that a user such as Plaintiff decided to start playing a Zynga game through a social media platform such as Facebook, he or she was presented with a screen request stating: “Allow Access? Allowing YoVille access will let it pull your profile information, photos, your friends’ info, and other content that it requires to work.” Underneath, there is a large “Allow” button, a smaller “cancel” link, and smaller grey font stating “By proceeding, you are allowing YoVille to access your information and you are agreeing to the [blue hyperlink] Facebook Terms of Service in your use of YoVille. By using YoVille, you also agree to the YoVille [blue hyperlink] Terms of Service.” Parker Decl. Ex. F;2 Seabolt Decl. Ex. A; Reply at 2 (image of screen shot). There is no record of whether Plaintiff or anyone else ever clicked on the blue hyperlinked YoVille Terms of Service, which Zynga’s 30(b)(6) witness testified it did not track. Parker Decl. Ex. E at 85-86, 92, 112, 126.

Then, on August 1, 2009, Zynga implemented its Universal TOS, which was intended to supercede the YoVille TOS. Hanley Decl. Ex. C. The Universal TOS provides:

With respect to any disputes or claims not subject to informal dispute resolution or arbitration (as set forth below), you agree not to commence or prosecute any action in connection therewith other than in the state and federal courts in San Francisco County ...

Hanley Decl. Ex. C. ¶ 12(a). The Universal TOS further provides:

Binding Arbitration. If you and Zynga are unable to resolve a Dispute through informal negotiations, either you or Zynga may elect to have the Dispute (except those disputes expressly excluded below) finally and exclusively resolved by binding arbitration. Any election to arbitrate by one party shall be final and binding on the other. YOU UNDERSTAND THAT ABSENT THIS PROVISION, YOU WOULD HAVE THE RIGHT TO SUE IN COURT AND HAVE A JURY TRIAL ... The determination of whether a Dispute is subject to arbitration shall be governed by the Federal Arbitration Act and determined by a court rather than an arbitrator ... Except as otherwise provided in this Agreement, you and Zynga may litigate in court to compel arbitration, stay proceedings pending arbitration, or to confirm, modify, vacate or enter judgment on the award entered by the arbitrator.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Laatz v. Zazzle, Inc.
N.D. California, 2023
Moyer v. Chegg, Inc.
N.D. California, 2023
Doe v. Massage Envy Franchising, LLC
California Court of Appeal, 2022
I.C. v. Zynga, Inc.
N.D. California, 2021
Beland v. Expedia CA3
California Court of Appeal, 2021
KIDSTAR v. FACEBOOK, INC.
D. New Jersey, 2020
Troia v. Tinder, Inc.
E.D. Missouri, 2020
Melo v. Zumper, Inc.
N.D. California, 2020
Harbers v. Eddie Bauer LLC
W.D. Washington, 2019
MUCCIARIELLO v. VIATOR, INC.
D. Massachusetts, 2019
MUCCIARIELLO v. VIATOR, INC.
D. New Jersey, 2019
Anand v. Heath
N.D. Illinois, 2019
Lopez v. Terra's Kitchen, LLC
331 F. Supp. 3d 1092 (S.D. California, 2018)
Nat'l Fed'n of the Blind v. Container Store, Inc.
904 F.3d 70 (First Circuit, 2018)
Pazol v. Tough Mudder Inc.
103 N.E.3d 1237 (Massachusetts Appeals Court, 2018)
Davis v. USA Nutra Labs, Co.
303 F. Supp. 3d 1183 (D. New Mexico, 2018)
Applebaum v. LYFT, Inc.
263 F. Supp. 3d 454 (S.D. New York, 2017)
Cubria v. Uber Technologies, Inc.
242 F. Supp. 3d 541 (W.D. Texas, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
805 F. Supp. 2d 904, 2011 U.S. Dist. LEXIS 85983, 2011 WL 3419499, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swift-v-zynga-game-network-inc-cand-2011.