Valiente v. StockX, Inc.

CourtDistrict Court, S.D. Florida
DecidedDecember 9, 2022
Docket1:22-cv-22432
StatusUnknown

This text of Valiente v. StockX, Inc. (Valiente v. StockX, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Valiente v. StockX, Inc., (S.D. Fla. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

Case No. 22-cv-22432-BLOOM/Otazo-Reyes

HERIBERTO VALIENTE,

Plaintiff,

v.

STOCKX, INC.,

Defendant. ________________________________/

ORDER ON MOTION TO COMPEL INDIVIDUAL ARBITRATION AND STAY LITIGATION

THIS CAUSE is before the Court upon Defendant StockX Inc.’s Motion to Compel Individual Arbitration and Dismiss Litigation, ECF No. [24] (“Motion”). Plaintiff Heriberto Valiente filed a Response in Opposition, ECF No. [27] (“Response”), to which Defendant filed a Reply, ECF No. [28] (“Reply”). The Court has carefully reviewed the Motion, all related submissions, the record in this case, the applicable law, and is otherwise fully advised. For the reasons set forth below, the Motion is granted. I. BACKGROUND Plaintiff initiated this class action against Defendant on August 2, 2022, by filing his Complaint. See ECF No. [1]. Plaintiff alleges Defendant: (1) violated Florida’s Deceptive and Unfair Trade Practices Act (“FDUTPA”); (2) violated State Consumer Fraud Acts; (3) breached an express warranty, an implied warranty of merchantability/fitness for a particular purpose, and Magnuson Moss Warranty Act; (4) made negligent misrepresentations; (5) committed fraud; and (6) was unjustly enriched. See generally id. In the instant Motion, Defendant requests that the Court compel the parties to arbitration and dismiss the case. ECF No. [24]. Defendant argues that Plaintiff agreed to the StockX Terms of Service (“Terms”) when he created a Stock X account, which includes an arbitration provision directing the parties to resolve any and all disputes exclusively through arbitration (“Arbitration Provision”). Defendant further contends that Plaintiff acknowledged his agreement to the Terms

each time he logged into his account. The Arbitration Provision states in relevant part: 14. Disputes with StockX … You and StockX each agree that any and all disputes or claims that have arisen or may arise between you and StockX relating in any way to or arising out of the Terms or your use of or access to the Services, shall be resolved exclusively through final and binding arbitration, rather than in court. Alternatively, you may assert your claims in small claims court, if your claims qualify and so long as the matters remains in such court and advances only on an individual (non-class, non- representative) basis. The FAA governs the interpretation and enforcement of this Agreement to Arbitrate. ECF No. [24-2] at 6. Plaintiff responds that (1) Florida law must be applied; (2) the Arbitration Provision is not valid because the agreement constituted an improper browsewrap agreement which did not put Plaintiff on notice of the Terms; (3) unconscionability bars compelling arbitration; and (4) the issue of arbitrability should be decided by the Court. See ECF No. [27]. II. LEGAL STANDARD The presence of a valid arbitration provision raises a strong presumption in favor of enforcement. See Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 630- 31 (1985) (stressing that the enforcement of a mutually agreed upon arbitration or forum-selection clause serves as an “indispensable precondition to the achievement of the orderliness and predictability essential to any international business transaction”). Indeed, the Federal Arbitration Act (“FAA”), 9 U.S.C. § 1, et seq., “embodies a ‘liberal federal policy favoring arbitration agreements.’” Hemispherx Biopharma, Inc. v. Johannesburg Consol. Invs., 553 F.3d 1351, 1366 (11th Cir. 2008) (quoting Moses H. Cone Mem’l Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 24 (1983)). Accordingly, the FAA requires courts to “rigorously enforce agreements to arbitrate.” Brandon, Jones, Sandall, Zeide, Kohn, Chalal & Musso, P.A. v. MedPartners, Inc., 312 F.3d 1349, 1357-58 (11th Cir. 2002) (quoting Mitsubishi Motors Corp., 473 U.S. at 625-26), abrogated on

other grounds by Ray Haluch Gravel Co. v. Cent. Pension Fund of Int’l Union of Operating Eng’rs & Participating Emp’rs, 134 S. Ct. 773 (2014); see also Hemispherx Biopharma, Inc., 553 F.3d at 1366 (citing Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213, 221 (1985)). Under the FAA, a written agreement to arbitrate is “valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.” 9 U.S.C. § 2. Despite courts’ proclivity for enforcement, a party will not be required to arbitrate where it has not agreed to do so. See Nat’l Auto Lenders, Inc. v. SysLOCATE, Inc., 686 F. Supp. 2d 1318, 1322 (S.D. Fla. 2010), aff’d, 433 F. App’x 842 (11th Cir. 2011) (citing United Steelworkers of Am. v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582 (1960)). It is axiomatic that the determination of whether parties have agreed to submit a dispute to arbitration is an issue of law subject to judicial

resolution. See Granite Rock Co. v. Int’l Bhd. of Teamsters, 561 U.S. 287, 296 (2010). Generally, this determination requires the district court to apply standard principles of state contract law. First Options of Chi., Inc. v. Kaplan, 514 U.S. 938, 939 (1995); see also P&S Bus. Machs., Inc. v. Canon USA, Inc., 331 F.3d 804, 807 (11th Cir. 2003). Under Florida law, when presented with a motion to compel arbitration, a court must consider three factors: (1) whether a valid agreement to arbitrate exists; (2) whether an arbitrable issue exists; and (3) whether the right to arbitrate was waived. Nat’l Auto Lenders, Inc. v. SysLOCATE, Inc., 686 F. Supp. 2d 1318, 1322 (S.D. Fla. 2010) aff’d, 433 F. App’x 842 (11th Cir. 2011); see also Sims v. Clarendon Nat’l Ins. Co., 336 F. Supp. 2d 1311, 1326 (S.D. Fla. 2004) (citing Marine Envt’l. Partners, Inc. v. Johnson, 863 So. 2d 423, 426 (Fla. 4th DCA 2003); and Seifert v. U.S. Home Corp., 750 So. 2d 633 (Fla. 1999)) (“Under both federal and Florida law, there are three factors for the court to consider in determining a party’s right to arbitrate: (1) a written agreement exists between the parties containing an arbitration clause; (2) an arbitrable issue

exists; and (3) the right to arbitration has not been waived.”). In addition, the Court of Appeals for the Eleventh Circuit has explained that courts should “treat motions to compel arbitration similarly to motions for summary judgment.” Hearn v. Comcast Cable Commc’ns, LLC, 992 F.3d 1209, 1215 n.3 (11th Cir.

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