United States: Lit Alerts—June 2018, Vol. 2

Arbitration: California Court of Appeal Affirms Denial of Uber's Motion to Compel Arbitration

This month, a three-justice panel of the California Court of Appeal affirmed a trial court's order denying Uber's motion to arbitrate claims brought by a Lyft driver who also drove for Uber.

In Smythe v. Uber Technologies, Inc. (Case No. A149891), the plaintiff, on behalf of a putative class of Lyft drivers who were allegedly sent on "wild goose chases to pick up nonexistent passengers," alleged that Uber engaged in a practice of creating fake Lyft accounts to misdirect Lyft drivers and discourage drivers from driving for Lyft. The complaint asserted causes of action for unfair business practices and intentional interference with prospective economic advantage.

Uber moved to compel arbitration because the named plaintiff also drove for Uber and had thus entered into agreements with Uber that contained arbitration provisions. The provisions called for drivers to arbitrate "any dispute arising out of or related to th[e] Agreement or termination of the Agreement" and were "intended to require arbitration of every claim or dispute that can be lawfully arbitrated, except for those claims and disputes which by the terms of th[e] Agreement [were] expressly excluded from the Arbitration Provision."

The trial court rejected Uber's argument, finding that the action was beyond the scope of the named plaintiff's arbitration agreement with Uber.

The Court of Appeal affirmed, holding that "it may be said with positive assurance that the arbitration clause is not susceptible of an interpretation that covers the asserted dispute." The named plaintiff's claims, which were "premised on [his] activities driving for Lyft," had "nothing to do with his identity as a driver for Uber" and thus fell "patently beyond the scope" of his arbitration agreement with Uber. Uber had further argued that the named plaintiff's claims were within the scope of the agreement because of a clause that addressed advertising and marketing to attract new users to Uber. The court quickly rejected this argument, holding that Uber's alleged practice, "whether or not with the aim of increasing its own ridership, cannot plausibly be called advertising or marketing."

Class Actions: Supreme Court Limits Tolling for Successive Class Actions

This month, the Supreme Court resolved an emerging circuit split on the availability of tolling for successive class action claims. The split concerned differing interpretations of the Court's decision in American Pipe & Constr. Co. v. Utah, 414 U.S. 538 (1974), which holds that the statute of limitations may be tolled for putative class members during the pendency of a class action. Under American Pipe and subsequent cases, in the event that a class is not certified, putative class members may either (a) join the ongoing action individually, or (b) file new individual actions, notwithstanding the expiration of the limitations period.

In China Agritech, Inc. v. Resh, 584 U.S. ___ (2018), the Court clarified that the American Pipe tolling rule only extends to putative class members who file individual claims after a court declines to certify a class. Tolling under American Pipe does not apply to putative class members who file a new class action complaint beyond the limit set by the applicable statute of limitations.

The Court explained that the purpose of American Pipe tolling is to promote judicial economy (which it said is also a key purpose of the Rule 23 class action procedure) by eliminating the need for would-be class members to file protective motions to secure their claims in the event that the class is not certified. In China Agritech, the Court explained that the same judicial economy considerations warrant the opposite result with respect to filing subsequent class action lawsuits: it is in the interest of the courts and all litigants to resolve class representative issues as early as possible in the litigation, instead of permitting would-be class representatives to wait in the wings while others forge ahead with their claims.

The decision provides new certainty to class action defendants. In the event that a class action complaint fails to achieve certification, and the limitations period has run, putative class members standing on the sidelines may no longer file a new class action complaint.

Consumer Protection: Ninth Circuit Tosses Injunction Claims for Allegedly Misleading Labels Based on Lack of Standing

In Lanovaz v. Twinings North America, Inc., the Ninth Circuit affirmed the district court's order granting summary judgment for tea maker Twinings on a consumer's claims for injunctive relief to remove allegedly misleading labels, because the consumer testified in deposition that she would not purchase Twinings' tea again even if the company removed the labels at issue. Twinings moved for summary judgment on claims under California's Unfair Competition Law, False Advertising Law, and Consumers Legal Remedies Act, on the ground that the plaintiff lacked Article III standing to seek injunctive relief because she could not show there was a sufficient likelihood that she would again be wronged in a similar way. The district court granted Twinings' motion.

The Ninth Circuit affirmed, relying on the plaintiff's deposition testimony that "she would not purchase Twinings products again, even if the company removed the allegedly misleading labels." The court rejected her argument that "her suit should surivive summary judgment because she stated in an interrogatory response that she would 'consider buying' Twinings products in the future." "[A] some day intention—without any description of concrete plans, or indeed even any specification of when the some day will be—does not support a finding of the actual or imminent injury that Ariticle III requires," the court explained.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions