White v. Square, Inc.

446 P.3d 276, 250 Cal. Rptr. 3d 770, 7 Cal. 5th 1019
CourtCalifornia Supreme Court
DecidedAugust 12, 2019
DocketS249248
StatusPublished
Cited by38 cases

This text of 446 P.3d 276 (White v. Square, Inc.) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White v. Square, Inc., 446 P.3d 276, 250 Cal. Rptr. 3d 770, 7 Cal. 5th 1019 (Cal. 2019).

Opinion

Opinion of the Court by Liu, J.

*1023 Here we consider a question regarding California's Unruh Civil Rights Act ( Civ. Code, § 51 et seq. ) (the Act) posed by the United States Court of Appeals for the Ninth Circuit: Does a plaintiff have standing to bring a claim under the Unruh Civil Rights Act when the plaintiff visits a business's website with the intent of using its services, encounters terms and conditions that allegedly deny the plaintiff full and equal access to its services, and then leaves the website without entering into an agreement with the service provider? (See White v. Square, Inc. (9th Cir. 2018) 891 F.3d 1174 , 1175 ; Cal. Rules of Court, rule 8.548, (a) & (f)(5).)

The answer is yes. When a plaintiff has visited a business's website with intent to use its services and alleges that the business's terms and conditions exclude him or her from full and equal access to its services, the plaintiff need not enter into an agreement with the business to establish standing under the Unruh Civil Rights Act. In general, a person suffers discrimination under the Act when the person presents himself or herself to a business with an intent to use its services but encounters an exclusionary policy or practice that prevents him or her from using those services. We conclude that this rule applies to online businesses and that visiting a website with intent to use its services is, for purposes of standing, equivalent **278 to presenting oneself for services at a brick-and-mortar store. Although mere awareness of a business's discriminatory policy or practice is not enough for standing under the Act, entering into an agreement with the business is not required. We express no *772 view on White's occupational discrimination claims.

I.

Bankruptcy attorney Robert White sued Square, Inc. (Square) in October 2015, alleging that Square's seller agreement discriminated against bankruptcy attorneys in violation of the Unruh Civil Rights Act. Square offers an internet service that allows individuals and merchants to " 'accept electronic payments without themselves directly opening up a merchant account with any Visa or MasterCard member bank.' " ( *1024 White v. Square , Inc. , supra , 891 F.3d at p. 1175.) Square does not charge its users any fee to register for its services; instead, after a user has registered, Square collects a percentage of every transaction as well as a flat fee for each transaction. Square's terms of service state that when a user creates an account, the user must " 'confirm that you will not accept payments in connection with the following businesses or business activities: ... (28) bankruptcy attorneys or collection agencies engaged in the collection of debt.' " ( Ibid . )

White's second amended complaint alleges that he "formed the strong, definite and specific intent" to sign up for and use Square's services. White familiarized himself with Square's seller agreement by reviewing a separate lawsuit filed against Square by a bankruptcy law firm called shierkatz RLLP. He then visited Square's website on multiple occasions and carefully reviewed its terms of service. He proceeded to the page of Square's website that allows a user to register for its services, but he declined to click the button labeled "Continue." Because White intended to use Square's services for his bankruptcy practice, he believed he could not sign the agreement without committing fraud. In support of this belief, White cites a letter from Square's counsel to shierkatz RLLP in which Square stated that " 'signing up for Square's service with the intent to violate the applicable terms of service would be fraudulent.' " ( White , supra , 891 F.3d at p. 1176, fn. 3.)

The district court dismissed White's second amended complaint with prejudice on the ground that he lacked standing under the Unruh Civil Rights Act to sue Square. The district court concluded that White had not attempted to use Square's services and only had "mere awareness" of its discriminatory terms of service. White appealed to the United States Court of Appeals for the Ninth Circuit, which then issued the certification order at issue here. In the order, the Ninth Circuit concluded that White's allegations "satisfy Article III's requirements for a concrete and particularized injury" and that he has met federal constitutional standing requirements. ( White , supra , 891 F.3d at p. 1177.)

II.

Standing rules for statutes must be viewed in light of the intent of the Legislature and the purpose of the enactment. ( Midpeninsula Citizens for Fair Housing v. Westwood Investors (1990) 221 Cal.App.3d 1377 , 1385, 271 Cal.Rptr. 99 ; Librers v. Black (2005) 129 Cal.App.4th 114 , 124, 28 Cal.Rptr.3d 188 .) The Unruh Civil Rights Act provides: "All persons within the jurisdiction of this state are free and equal, and no matter what their sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary *1025 language, or immigration status are entitled to the full and equal accommodations, advantages, facilities, privileges, or services in all business establishments of every kind whatsoever." ( Civ. Code, § 51, subd. (b) ; all undesignated statutory references are to this code.) Section 52, subdivision (a) provides: *773 "Whoever denies, aids or incites a denial, or makes any discrimination or distinction contrary to Section 51 ... is liable for each and every offense for the actual damages, and any amount that may be determined by a jury, or a court sitting without a jury, up to a maximum of three times the amount of actual damage but in no case less than four thousand dollars ($4,000), and any attorney's fees **279

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Cite This Page — Counsel Stack

Bluebook (online)
446 P.3d 276, 250 Cal. Rptr. 3d 770, 7 Cal. 5th 1019, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-square-inc-cal-2019.