Washington v. Persona Identities, Inc.

2024 IL App (3d) 240210, 254 N.E.3d 394
Appellate Court of Illinois·Decided August 13, 2024·No. 3-24-0210·Published·Cited by 2 cases

Opinion

2024 IL App (3d) 240210

Opinion filed August 13, 2024

IN THE

APPELLATE COURT OF ILLINOIS THIRD DISTRICT

2024

CHARLES WASHINGTON and ) Appeal from the Circuit Court KATIE SIMS, Individually and on Behalf ) of the 12th Judicial Circuit, of Similarly Situated Individuals, ) Will County, Illinois, )

Plaintiffs-Appellants, )

) Appeal No. 3-24-0210 v. ) Circuit No. 21-L-816 )

PERSONA IDENTITIES, INC., ) Honorable ) Barbara N. Petrungaro, Defendant-Appellee. ) Judge, Presiding.

JUSTICE DAVENPORT delivered the judgment of the court, with opinion.

Justices Hettel and Albrecht concurred in the judgment and opinion.

OPINION

¶1 Plaintiffs, Charles Washington and Katie Sims, sued Persona Identities, Inc. (Persona), a software company that provides businesses automated identity verification services, alleging violations of the Biometric Information Privacy Act (740 ILCS 14/1 et seq. (West 2022)). Relying on a contract under which it claimed beneficiary status, Persona moved to stay plaintiffs’ claims and compel arbitration. The circuit court granted the motion, and plaintiffs appealed. For the reasons that follow, we hold Persona has no legitimate basis to compel plaintiffs’ claims to arbitration. Accordingly, we reverse the court’s order.

¶2 I. BACKGROUND

¶3 In 2021, plaintiffs registered to become delivery drivers for DoorDash, Inc. (DoorDash), a company that provides an online marketplace platform connecting consumers, restaurants, and delivery drivers. DoorDash’s registration process requires prospective drivers to submit live “selfies” along with photographs of their driver’s license cards. After registration, DoorDash occasionally prompts its drivers to re-verify their identities by submitting selfies on its mobile application. DoorDash authenticates its drivers’ identities using Persona’s identity verification software interface, which collects, analyzes, and stores scans of the drivers’ facial geometries.

¶4 As part of the registration process, plaintiffs submitted selfies and photographs of their driver’s license cards. They also accepted DoorDash’s “Independent Contractor Agreement” (Agreement), which provided the following:

“This Agreement (‘Agreement’) is made and entered by and between you, the undersigned contractor (‘CONTRACTOR’), an independent contractor engaged in the business of performing the services contemplated by this Agreement, and DoorDash, Inc. (‘DOORDASH’ or ‘COMPANY’). ***.

***

***. DOORDASH and CONTRACTOR (collectively ‘the parties’) agree as follows:

I. PURPOSE OF THE AGREEMENT 1. This Agreement governs the relationship between DOORDASH and CONTRACTOR, and establishes the parties’ respective rights and obligations. ***.

***

IV. RELATIONSHIP OF PARTIES

1. The parties acknowledge and agree that this Agreement is between two co-equal, independent business enterprises that are separately owned and operated. ***.

***

VIII. PERSONNEL 1. In order to perform any Contracted Services, CONTRACTOR must, for the safety of consumers on the DOORDASH platform, pass a background check administered by a third-party vendor, subject to CONTRACTOR’s lawful consent. ***.

***

XI. MUTUAL ARBITRATION PROVISION 1. CONTRACTOR and DOORDASH mutually agree to this Mutual Arbitration Provision, which is governed by the Federal Arbitration Act (9 U.S.C. §§ 1-16) (‘FAA’) and shall apply to any and all disputes arising out of or relating to this Agreement *** and all other aspects of CONTRACTOR’s relationship with DOORDASH, past, present or future, whether arising under federal, state or local statutory and/or common law ***, and all other federal, state or local claims arising out of or relating to CONTRACTOR’s relationship or the termination of that relationship with DOORDASH. The parties expressly agree that this Agreement shall be governed by the FAA even in the event CONTRACTOR and/or DOORDASH are otherwise exempted from the FAA. Any disputes in this regard shall be resolved exclusively by an arbitrator. If for any reason the FAA does not

apply, the state law governing arbitration agreements in the state in which the CONTRACTOR operates shall apply.

***

9. CONTRACTOR’s Right to Opt Out of Mutual Arbitration Provision.

Arbitration is not a mandatory condition of CONTRACTOR’s contractual relationship with DOORDASH, and therefore CONTRACTOR may submit a statement notifying DOORDASH that CONTRACTOR wishes to opt out and not be subject to this MUTUAL ARBITRATION PROVISION.

***

XVII. MISCELLANEOUS

***

3. GOVERNING LAW: Except for the Mutual Arbitration Provision above, which is governed by the Federal Arbitration Act, the choice of law for interpretation of this Agreement, and the right of the parties hereunder, as well as substantive interpretation of claims asserted pursuant to Section XI, shall be the rules of law of the state in which CONTRACTOR performs the majority of the services covered by this Agreement.”

¶5 Plaintiffs filed suit in late 2021 and twice amended their complaint. Their second amended complaint is styled as a class action lawsuit, purporting to be on behalf of plaintiffs and a proposed class of “Illinois residents whose biometric identifiers or biometric information were possessed by [Persona] at any time within the applicable limitation period.” The complaint seeks injunctive relief and statutory damages. It alleges Persona wrongfully possessed and profited from the class

members’ biometric information because it failed to publicly disclose its biometric retention and destruction policy upon collecting that information.

¶6 In September 2023, Persona moved (1) to stay plaintiffs’ claims under section 3 of the Federal Arbitration Act (FAA) (9 U.S.C. § 3 (2018)) and (2) to compel individual arbitration of plaintiffs’ claims under section 4 of the FAA (id. § 4). Persona asserted third-party beneficiary status under the Agreement and argued the Agreement’s arbitration provision was broad enough to cover plaintiffs’ claims against it. Attached to Persona’s motion was a declaration from DoorDash that plaintiffs had not opted out of the arbitration provision. Plaintiffs, in response, argued Persona provided no evidence of its involvement in DoorDash’s background check process. They noted DoorDash’s website identifies “Checkr”—not Persona—as the entity performing background checks for DoorDash.

¶7 In February 2024, the circuit court granted Persona’s motion, finding Persona was an intended third-party beneficiary of the Agreement. The court explained, “In this case, Plaintiffs’ identities are verified using Persona’s [software] to aid in the process of the background check. As such, [Persona] is part of the background check process and thus, an intended third-party beneficiary to the Agreement. The parties are required to submit this dispute to arbitration.”

Plaintiffs now appeal that decision under Illinois Supreme Court Rule 307(a)(1) (eff. Nov. 1, 2017).

¶8 II. ANALYSIS

¶9 Plaintiffs contend the circuit court erred in finding Persona was an intended third-party beneficiary of the Agreement. They further contend the court improperly made a factual determination by finding Persona was “part of DoorDash’s background check process.” Persona,

in contrast, urges us to dismiss the appeal for lack of jurisdiction and, alternatively, to affirm the court’s ruling and its finding that Persona was an intended third-party beneficiary of the Agreement.

¶ 10 A. Jurisdiction

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Washington v. Persona Identities, Inc., 2024 IL App (3d) 240210, 254 N.E.3d 394 (Ill. Ct. App. 2024).

2024 IL App (3d) 240210 (Washington v. Persona Identities, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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