Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Phillips v. Neutron Holdings, Inc.

United States District Court, N.D. Texas, Dallas Division

October 2, 2019

DAVID PHILLIPS, as Representative of the Estate of JACOB Y JOSEPH STONEKING, Deceased, CARLA RENEE WILSON, and JACK STONEKING
v.
NEUTRON HOLDINGS, INC., d/b/a LIME and SEGWAY INC.

          MEMORANDUM OPINION AND ORDER

          KAREN GREN SCHOLER UNITED STATES DISTRICT JUDGE

         This Order addresses Defendant Neutron Holdings, Inc. d/b/a Lime's ("Lime") Motion to Compel Arbitration and for Stay or Dismissal [ECF No. 8], For the following reasons, the Court grants the Motion.

         I. BACKGROUND

         A. The Lime App Interface

         Lime is a micro-mobility company that provides dockless bicycle and electric scooter ("e-scooter") rentals to metropolitan areas and universities around the world. Br. in Supp. Mot. to Compel Arbitration ("Br.") 1. To locate and unlock Lime's e-scooters, a user must first download the Lime App ("App") and create an account. See id, at 3-4. A user can create an account by either entering a telephone number or using a Facebook link to populate his or her information. See Id. at 4. If a user enters a telephone number, he or she then clicks a button that says "NEXT." See Id. If a user opts to sign up using Facebook, he or she clicks the button that says, "Continue with Facebook," which is located below the "NEXT" button. See id.; see also Def.'s App. 07. Underneath the Facebook button is a notice that states, "[b]y singing up, I confirm that I am at least 18 years old, and that I have read and agreed to Lime's User Agreement & Terms of Service." See Br. 4. The words "User Agreement" and "Terms of Service" are in darker boldface than the rest of the sentence, and they provide a hyperlink to Lime's User Agreement ("User Agreement"). See id.

         B. The User Agreement

         If users click on the hyperlink, they are directed to a webpage containing the User Agreement. See Br. 5. The second full paragraph of the User Agreement is in all-caps and reads as follows:

IMPORTANT NOTICE: THIS AGREEMENT IS SUBJECT TO BINDING ARBITRATION AND A WAIVER OF CLASS ACTION RIGHTS AS FURTHER DETAILED IN SECTION 2 BELOW. BY AGREEING TO ARBITRATE, EACH PARTY IS GIVING UP ITS RIGHT TO GO TO COURT AND HAVE ANY DISPUTE HEARD BY A JUDGE OR JURY. BY AGREEDING TO WAIVE CLASS ACTION RIGHTS, EACH PARTY AGREES THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN YOUR OR OUR INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRSENTATIVE PROCEEDING OR AS AN ASSOCIATION.

Def.'s App. 09. Section 2 of the User Agreement is titled "ARBITRATION; CLASS ACTION WAIVER; DISPUTE RESOLUTION." Id. at 14. It reads, in relevant part, as follows:

2.1 Dispute Resolution: Certain portions of this Section 2 are deemed to be a "written agreement to arbitrate" pursuant to the Federal Arbitration Act. You and Lime expressly agree and intend that this Section 2 satisfies the "writing" requirement of the Federal Arbitration Act. This Section 2 can only be amended by mutual agreement.
* * *
2.3 Binding Arbitration: If We cannot resolve a Dispute as set forth in Section 2 (or agree to arbitration in writing with respect to an Excluded Dispute) within sixty (60) days of receipt of the notice, then ANY AND ALL DISPUTES ARISING BETWEEN YOU AND LIME (WHETHER BASED IN CONTRACT, LAW, STATUTE, RULE, REGULATION, ORDINANCE, TORT INCLUDING, BUT NOT LIMITED TO, FRAUD, ANY OTHER INTENTIONAL TORT OR NEGLIGENCE, COMMON LAW, CONSTITUTIONAL PROVISION, RESPONDEAT SUPERIOR, AGENCY AND/OR ANY OTHER LEGAL OR EQUITABLE THEORY), WHETHER ARISING BEFORE OR AFTER THE EFFECTIVE DATE OF THIS AGREEMENT, MUST BE RESOLVED BY FINAL AND BINDING ARBITRATION. THIS INCLUDES ANY AND ALL DISPUTES BASED ON ANY PRODUCT, SERVICE OR ADVERTISING CONNECTED TO THE PROVISION OR USE OF THE SERVICES. The Federal Arbitration Act ("FAA"), not state law, shall govern the arbitrability of all disputes between Lime and You regarding this Agreement (and any Additional Terms) and the Services, including the "No Class Action Matters" Section below. BY AGREEING TO ARBITRATE, EACH PARTY IS GIVING UP ITS RIGHT TO GO TO COURT AND HAVE ANY DISPUTE HEARD BY A JUDGE OR JURY. Lime and You agree, however, that State or federal law shall apply to, and govern, as appropriate, any and all claims or causes of action, remedies, and damages arising between You and Lime regarding this Agreement and the Services, whether arising or stated in contract, statute, common law, or any other legal theory, without regard to State's choice of law principles.
2.4 Applicability of JAMS Rules and Location of Arbitration: A Dispute will be resolved solely by binding arbitration in accordance with the then-current Commercial Arbitration Rules of the Judicial Arbitration and Mediation Services Inc. ("JAMS") using JAMS' streamlined Arbitration Rules and Procedures, or by any other arbitration administrative service that You and an officer or legal representative of Lime consent to in writing.

Id. at 14-15. The applicable JAMS Rules allegedly incorporated into the User Agreement provide as follows:

Jurisdictional and arbitrability disputes, including disputes over the formation, existence, validity, interpretation or scope of the agreement under which Arbitration is sought, and who are proper Parties to the Arbitration, shall be submitted to and ruled on by the Arbitrator. The Arbitrator has the ...

Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.