Motion to Compel Arbitration in **TRANSFERRED TO SOMONA CO.** JANE DOE ET AL VS. AIRBNB, INC| Trellis.Law

On January 22, 2020 a Motion-Secondary was filed involving a dispute between Doe, Jane, Roe, Jane, and Airbnb, Inc, Anderson, Cathryn, Anderson, Stanley, Does 1 To 20, Inclusive, for WRONGFUL EVICTION in the District Court of San Francisco County.

Preview
Michele Floyd (SBN 163031)
1 mfloyd@srclaw.com
Amy Fisher (SBN 323936) ELECTRONICALLY
2 afisher@srclaw.com F I L E D
SACKS, RICKETTS & CASE LLP Superior Court of California,
3 177 Post Street, Suite 650 County of San Francisco

4 San Francisco, CA 94108 06/23/2020
Telephone: 415-549-0580 Clerk of the Court
Fax: 415-549-0640 BY: VANESSA WU
5 Deputy Clerk

Attorneys for Defendant
6 AIRBNB, INC.
7
8
9 SUPERIOR COURT OF THE STATE OF CALIFORNIA

10 COUNTY OF SAN FRANCISCO – UNLIMITED JURISDICTION
11
JANE DOE; JANE ROE
12 Case No.: CGC-20-582389
Plaintiffs,
13
vs. DECLARATION OF AMY FISHER IN
14
SUPPORT OF DEFENDANT AIRBNB,
15 AIRBNB, INC.; STANLEY ANDERSON; INC.’S MOTION TO COMPEL
CATHRYN ANDERSON; and DOES 1-20, ARBITRATION
16 Inclusive,
17 Date: August 6, 2020
Time: 9:30 a.m.
Defendants.
18 Dept.: 302
Judge: Hon. Ethan P. Schulman
19
20 Complaint Filed: January 22, 2020
RES. ID.: TBD
21
Filed/Lodged herewith:
22
1. Notice of Motion and Motion
23 2. Memorandum of Points and Authorities
3. Declaration of Kyle Miller
24
4. [Proposed] Order
25 5. Notice of Payment of Court Reporter Fee
26
27
28
_____________________________________________________________________________________________
DECLARATION OF AMY FISHER ISO DEFENDANT AIRBNB INC.’S MOTION TO COMPEL
ARBITRATION
CASE NO. CGC-20-582389
1 I, Amy Fisher, hereby declare as follows:
2 1. I am an attorney at law duly licensed to practice in the State of California. I am
3 an associate at the law firm of Sacks, Ricketts & Case, LLP and counsel of record for Defendant
4 Airbnb, Inc. (“Airbnb”) in this matter. I have personal knowledge of the facts set forth below
5 except as to those facts set forth upon information and belief. As to those facts, I believe them to
6 be true. If called as a witness, I could and would testify competently to the facts set forth herein.
7 I make this Declaration in support of Airbnb’s Motion to Compel Arbitration.
8 2. Attached hereto as Exhibit A is a true and correct copy of the court’s order
9 granting Airbnb’s motion to compel arbitration in Hollywood v. Airbnb, Inc., Los Angeles
10 County Superior Court Case No. BC601165 (April 20, 2016).
11 3. Attached hereto as Exhibit B is a true and correct copy of the court’s order
12 granting Airbnb’s motion to compel arbitration in Stutland v. Airbnb, Inc., Los Angeles County
13 Superior Court Case No. BC581681 (Mar. 22, 2017).
14 4. Attached hereto as Exhibit C is a true and correct copy of Selden v. Airbnb, Inc.,
15 Case No. 16-cv-00933 (CRC), 2016 WL 6476934 (D.D.C. Nov. 1, 2016), in which the court
16 granted Airbnb’s motion to compel arbitration.
17 5. Attached hereto as Exhibit D is a true and correct copy of the court’s order
18 granting Airbnb’s motion to compel arbitration in Fogel et al. v. Hacker et al., Los Angeles
19 County Superior Court Case No. BC651607 (August 29, 2017).
20 6. Attached hereto as Exhibit E is a true and correct copy of the court’s order
21 granting Airbnb’s motion to compel arbitration in Mazaheri et al. v. Bob et al., Los Angeles
22 County Superior Court Case No. BC658417 (September 21, 2017).
23 7. Attached hereto as Exhibit F is a true and correct copy of the court’s order
24 granting Airbnb’s motion to compel arbitration in Plazza v. Airbnb, Inc., Case No. 16-CV-1085,
25 2018 WL 583122 (S.D.N.Y.) (January 26, 2018).
26 8. Attached hereto as Exhibit G is a true and correct copy of the court’s order
27 granting Airbnb’s motion to compel arbitration in Senders v. Airbnb, Inc., San Francisco
28 Superior Court Case No. CGC 17561710 (Mar. 14, 2018).

2
DECLARATION OF AMY FISHER ISO DEFENDANT AIRBNB INC.’S MOTION TO COMPEL
ARBITRATION
CASE NO. CGC-20-582389
1 9. Attached hereto as Exhibit H is a true and correct copy of the court’s order
2 granting Airbnb’s motion to compel arbitration in McCluskey v. Airbnb, Inc., San Francisco
3 Superior Court Case No. CGC-18-563528 (May 30, 2018).
4 10. Attached hereto as Exhibit I is a true and correct copy of the court’s order
5 granting Airbnb’s motion to compel arbitration in McCluskey v. Henry et al., San Francisco
6 Superior Court Case No. CGC-18-567741 (Nov. 7, 2018).
7 I declare under penalty of perjury under the laws of the State of California that the
8 foregoing is true and correct. Executed this 22 day of June, 2020, at Fort Bragg, California
9 United States of America.
________________________________
10 AMY FISHER
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28

3
DEFENDANT AIRBNB, INC.’S MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF
ITS MOTION TO COMPEL ARBITRATION
CASE NO. CGC-18-563528
EXHIBIT A
EXHIBIT B
EXHIBIT C
Case 1:16-cv-00933-CRC Document 20 Filed 11/01/16 Page 1 of 1
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 1 of 19

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLUMBIA

GREGORY SELDEN, et al.,

Plaintiffs,

Case No. 16-cv-00933 (CRC)
v.

AIRBNB, INC.,

Defendant.

MEMORANDUM OPINION

All of us who have signed up for an online service recently will recall the experience.

After entering the service provider’s website, we were presented with a “sign up” or “create

account” button prominently displayed on the screen. Next to the button—less prominent, no

doubt—was the ubiquitous advisory that, by signing up, we would be accepting the provider’s

“terms of service.” Perhaps there was a separate check-box prompting us to indicate our

agreement to those terms. Regardless, eager to begin using the service and realizing that the

provider’s contractual terms are non-negotiable, most of us signed up without bothering to click

the accompanying link to reveal the contractual terms. Those who did undoubtedly found

numerous pages of legalese. The intrepid few who actually read all the terms almost certainly

learned that one of them requires users to relinquish their right to have a jury resolve any dispute

with the provider. And that another bars class actions. This experience, shared by countless

people each day, gives rise to the dispute presently before the Court.

Plaintiff Gregory Selden, who is African American, signed up with the popular

residential rental service Airbnb in advance of a weekend getaway to Philadelphia. He created
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 2 of 19

the required user profile, including his photograph, and contacted an Airbnb “host” about a

promising listing. The host allegedly responded that the residence was not available. Smelling a

rat, Selden created a second account under a pseudonym, with a photograph of a white person in

the user profile, and contacted the same host about the same accommodation. This time, Selden

claims, the host was only too happy to rent the residence.

Selden filed suit against Airbnb for race discrimination on behalf of himself and fellow

African-American travelers who have reported similar treatment on Airbnb. See, e.g., Elaine

Glusac, As Airbnb Grows, So Do Claims of Discrimination, N.Y. Times (June 26, 2016),

http://www.nytimes.com/2016/06/26/travel/airbnb-discrimination-lawsuit.html. Likening

Airbnb to a hotel and its hosts to rental agents or hotel employees, Selden seeks to hold the

company responsible under federal civil rights laws for the discriminatory conduct of those who

offer accommodations on its website. Airbnb contests liability, although that issue is not before

the Court because the company’s standard Terms of Service—which it claims Selden accepted

by signing up to use the site—contain a clause requiring all disputes to be resolved by an

arbitrator. Civil lawsuits with a potential jury trial are prohibited. As are class actions.

Invoking this clause, Airbnb moves to compel arbitration of Selden’s claims. Selden

responds that no contract exists—and therefore the arbitration clause does not apply—because

the sign-up process did not place him on adequate notice that he was agreeing to Airbnb’s

formed, the arbitration provision does not apply to discrimination suits and is unconscionable in

any event.

The Court must grant Airbnb’s motion. No matter one’s opinion of the widespread and

controversial practice of requiring consumers to relinquish their fundamental right to a jury

2
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 3 of 19

trial—and to forego class actions—as a condition of simply participating in today’s digital

economy, the applicable law is clear: Mutual arbitration provisions in electronic contracts—so

long as their existence is made reasonably known to consumers—are enforceable, in commercial

disputes and discrimination cases alike. And Airbnb’s sign-up procedures were sufficiently clear

to place Mr. Selden on notice that he was agreeing to the company’s Terms of Service when he

created an account. While that result might seem inequitable to some, this Court is not the

proper forum for policy objections to mandatory arbitration clauses in online adhesion contracts.

Such objections should be taken up with the appropriate regulators or with Congress.

I. Background & Procedural Posture

A. Selden’s Use of Airbnb

Gregory Selden and a friend planned a trip to Philadelphia in March 2015. Second

Amend. Compl. ¶¶ 28–35. To book their accommodations, Selden turned to Airbnb, which

describes itself as “a trusted community marketplace for people to list, discover, and book unique

accommodations all around the world.” About Us, Airbnb, http://www.airbnb.com/about/about-

us (last visited Oct. 24, 2016). Airbnb allows property owners or their representatives—“hosts”

in the company’s parlance—to list their accommodations on the platform, where travelers then

attempt to book them. Def.’s Mot. Compel Arbitration (“MCA”), Decl. of Kyle Miller ¶ 2.

While Airbnb facilitates the transactions, the hosts, alone, are responsible for deciding to whom

they will offer their homes for short-term stays. Id.

Selden first created his Airbnb account in March 2015, using an iPhone mobile device.

Pl.’s Opp’n MCA, Decl. of Gregory Selden ¶ 2; Supp. Decl. of Kyle Miller ¶¶ 2, 4. Airbnb’s

mobile sign-up screen, attached as an appendix to this Memorandum Opinion, presented Selden

with three options in descending order: “Sign up with Facebook,” “Sign up with Google,” and

3
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 4 of 19

“Sign up with Email.” See Appendix. Below the “Sign up with Email” button was text that

read: “By signing up, I agree to Airbnb’s Terms of Service, Privacy Policy, Guest Refund Policy,

and Host Guarantee Terms.” Id. The text contained hyperlinks to these various agreements. Id.

Airbnb’s Terms of Service include, among other provisions, a mandatory arbitration clause.

Def.’s MCA, Ex. B, 16–18. Selden clicked “Sign up with Facebook” at the top of the page, and

proceeded to create his Airbnb profile in order to use the service. Decl. of Gregory Selden ¶ 6.

Selden’s profile included a photograph of his face, along with other details like his name,

age, and education. Shortly after creating his account, he inquired with a host about the

availability of a listing that met his needs. Id. at ¶¶ 6–7. According to Selden, the host informed

him that the accommodation was not available. Id. at ¶ 7. While browsing Airbnb later that day,

however, Selden noticed that the listing was still posted. Id. at ¶ 8. Suspecting that he was

denied accommodations due to his race, Selden created two fictitious Airbnb accounts with

profile photos depicting white men. Id. He then used those accounts to apply to the same listing,

and, he claims, the host accepted both. Id. Selden later took to social media with his claims of

discrimination, and the hashtag “#airbnbwhileblack” quickly went viral. Second Amend. Compl.

¶ 50.

B. Airbnb’s Terms of Service

Airbnb’s Terms of Service at the time Selden signed up for Airbnb spanned seventeen

single-spaced pages and began with the following statement:

PLEASE READ THESE TERMS OF SERVICE CAREFULLY AS THEY
CONTAIN IMPORTANT INFORMATION REGARDING YOUR
LEGAL RIGHTS, REMEDIES AND OBLIGATIONS. THESE INCLUDE
VARIOUS LIMITATIONS AND EXCLUSIONS, A CLAUSE THAT
GOVERNS THE JURISDICTION AND VENUE OF DISPUTES, AND
OBLIGATIONS TO COMPLY WITH APPLICABLE LAWS AND
REGULATIONS.

4
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 5 of 19

Pl.’s MCA, Ex. B, 2. The “Dispute Resolution” clause, by which Airbnb seeks to compel

arbitration, appeared on page fifteen of the document:

You and Airbnb agree that any dispute, claim or controversy arising out of or
relating to these Terms or the breach, termination, enforcement, interpretation or
validity thereof, or to the use of the Services or use of the Site or Application
(collectively, “Disputes”) will be settled by binding arbitration, except that each
party retains the right to seek injunctive or other equitable relief in a court of
competent jurisdiction to prevent the actual or threatened infringement,
misappropriation or violation of a party’s copyrights, trademarks, trade secrets,
patents, or other intellectual property rights. You acknowledge and agree that you
and Airbnb are each waiving the right to a trial by jury or to participate as a plaintiff
or class member in any purported class action or representative proceeding. If this
specific paragraph is held unenforceable, then the entirety of this “Dispute
Resolution” section will be deemed void. Except as provided in the preceding
sentence, this “Dispute Resolution” section will survive any termination of these
Terms.
Def.’s MCA, Ex. B, 16 (emphasis added). The section continued that any arbitration

proceedings shall be administered by the American Arbitration Association and offered general

details about the arbitration process. Id. at 16–18.

C. Procedural History

Selden filed a putative class action suit against Airbnb in this Court on May 17, 2016, and

has since twice amended his Complaint. He is the sole named Plaintiff. See Second Amend.

Compl. Selden alleges that Airbnb violated Title II of the Civil Rights Act of 1964, 42 U.S.C.

§ 2000a, which prohibits race discrimination in public accommodations; the Civil Rights Act of

1866, 42 U.S.C. § 1981, which prohibits race discrimination in the formation of contracts; and

the Fair Housing Act, 42 U.S.C. § 3604, which prohibits race discrimination in the sale or rental

of housing. Id. at ¶¶ 53–72. Airbnb moved to compel arbitration on July 13, 2016. See Def.’s

MCA. The Court heard oral argument on the motion on October 12, 2016.

5
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 6 of 19

II. Legal Standards

The Federal Arbitration Act (“FAA”) provides that a provision in a contract requiring the

arbitration of disputes related to the contract “shall be valid.” 9 U.S.C. § 2. The D.C. Circuit has

held that “any doubts concerning the scope of arbitrable issues should be resolved in favor of

arbitration.” Wolff v. Westwood Mgmt., LLC, 558 F.3d 517, 520 (D.C. Cir. 2009).

Notwithstanding a prior agreement to arbitrate, plaintiffs often attempt to resolve disputes in

federal court. Section 4 of the FAA provides a remedy for the defendant: “A party aggrieved by

the alleged failure, neglect, or refusal of another to arbitrate under a written agreement for

arbitration may petition any United States district court . . . for an order directing that such

arbitration proceed in the manner provided for in such agreement.” 9 U.S.C. § 4.

Such a petition is often called a motion to compel arbitration, and is properly resolved

under the summary judgment standard. Aliron Intern., Inc. v. Cherokee Nation Indus., Inc., 531

F.3d 863, 865 (D.C. Cir. 2008). The Court may consider evidence outside of the Complaint and

shall grant the motion if “there is no genuine dispute as to any material fact and the movant is

entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). And in making this

determination, the Court shall view the facts “in the light most favorable to the nonmoving

party.” Chambers v. U.S. Dept. of Interior, 568 F.3d 998, 1000 (D.C. Cir. 2009).

III. Analysis

Airbnb’s Motion to Compel Arbitration presents three questions: (1) did Selden agree to

Airbnb’s Terms of Service; (2) if so, does the mandatory arbitration clause apply to his claims of

race discrimination; and (3) if the clause applies to his claims, is it enforceable? For the reasons

explained below, the Court finds that Selden agreed to the Terms of Service, that those terms

6
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 7 of 19

require the arbitration of unlawful race discrimination claims, and that the agreement is

enforceable.

A. Whether Selden Agreed to Airbnb’s Terms of Service

1. Online Adhesion Contracting

Arbitration is a matter of contract law. Thus, whether Selden agreed to arbitrate depends

on whether a valid contract was formed.1 Airbnb’s Terms of Service agreement can be described

as an online adhesion contract. Courts and commentators have identified a number of variations

of these electronic agreements, including “browsewraps,” “clickwraps,” “scrollwraps,” and

“sign-in-wraps.” See, e.g., Nguyen v. Barnes & Noble, Inc., 763 F.3d 1171, 1175–77 (9th Cir.

2014); Berkson v. Gogo LLC, 97 F. Supp. 3d 359, 366–67 (E.D.N.Y 2015). A “browsewrap”

agreement is one in which an internet user accepts a website’s terms of use merely by browsing

the site. A “clickwrap” agreement is one in which an internet user accepts a website’s terms of

use by clicking an “I agree” or “I accept” button, with a link to the agreement readily available.

A “scrollwrap” agreement is like a “clickwrap,” but the user is presented with the entire

agreement and must physically scroll to the bottom of it to find the “I agree” or “I accept”

button. Finally, many internet websites—including Airbnb during the relevant time period—

now use “sign-in-wraps” (although “sign-up-wrap” is a more appropriate name). “Sign-in-wrap”

agreements are those in which a user signs up to use an internet product or service, and the sign-

1
The Court will apply California law in deciding the issue of contract formation. Contrary
to Airbnb’s argument, Def.’s MCA 7, the California choice-of-law clause in Airbnb’s Terms of
Service does not govern this question, as the Court must assess whether Selden agreed to the
Terms of Service in the first place. See, e.g., McMullen v. Synchrony Bank, 164 F. Supp. 3d 77
(D.D.C. 2016) (“Applying the choice-of-law clause to resolve the contract formation issue would
presume the applicability of a provision before its adoption by the parties has been established.”)
(internal quotations omitted). After considering the relevant choice-of-law rules, however, the
Court is satisfied—and the parties agree—that California law applies to this threshold dispute.

7
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 8 of 19

up screen states that acceptance of a separate agreement is required before the user can access the

service. While a link to the separate agreement is provided, users are not required to indicate

that they have read the agreement’s terms before signing up. See Barnes & Noble, 763 F.3d at

1177–79; Cullinane v. Uber Technologies, 2016 WL 3751652 at *5–7 (D. Mass. July 11, 2016).

While the relevant terminology continues to evolve, the Court’s inquiry into contract

formation does not. See Register.com, Inc. v. Verio, Inc., 356 F.3d 393, 403 (2d Cir. 2004)

(“While new commerce on the Internet has exposed courts to many new situations, it has not

fundamentally changed the principles of contract.”). “Mutual manifestation of assent”—the

“touchstone of contract”—must still be present. Barnes & Noble, 763 F.3d at 1175 (quoting

Specht v. Netscape Commc’ns Corp., 306 F.3d 17, 29 (2d Cir. 2002) (applying California law)).

But because this case concerns a type of “sign-in-wrap” agreement, the consumer’s assent is

“largely passive.” Berkson, 97 F. Supp. 3d at 393 (applying California law). As a result, “the

contract-formation question will often turn on whether a reasonably prudent offeree would be on

inquiry notice of the terms at issue.” Schnabel v. Trilegiant Corp., 697 F.3d 110, 126–27 (2d

Cir. 2012) (holding that under California law, consumers were not on inquiry notice of an

arbitration provision when the relevant terms were sent to them by e-mail following enrollment

in an online service). As then-Judge Sotomayor explained in assessing online adhesion contracts

generally, “[c]larity and conspicuousness of [the] terms are important” in making this

determination. Specht, 306 F.3d at 30 (applying California law).

Applying these principles to sign-in-wrap agreements specifically, Judge Weinstein noted

in an extensive discussion on the issue that district courts tend to uphold the agreements under

three circumstances. Berkson, 97 F. Supp. 3d at 400–01. First, the agreements tend to be

enforced if “the hyperlinked ‘terms and conditions’ is next to the only button that will allow the

8
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 9 of 19

user to continue use of the website.” Id. (citing Crawford v. Beachbody, LLC, 2014 WL

6606563, at *3 (S.D. Cal. Nov. 5, 2014) (finding a forum selection clause binding when the

“terms and conditions” statement was directly above the “Place Order” button)); Starke v. Gilt,

2014 WL 1652225, at *2–3 (S.D.N.Y. Apr. 24, 2014) (finding an arbitration clause binding

when the “terms of use” statement was right next to the “Shop Now” button); Swift v. Zynga

Game Network, Inc., 805 F. Supp. 2d 904, 908, 912 (N.D. Cal 2011) (finding an arbitration

clause binding where the “terms of service” statement was directly below the “Accept” button).

Second, courts tend to uphold sign-in-wrap agreements if “the user ‘signed up’ to the website and

was presented with hyperlinks to the terms of use on subsequent visits.” Berkson, 97 F. Supp. 3d

at 401 (citing Nicosia v. Amazon.com, Inc., 84 F. Supp. 3d 142, 151–53 (E.D.N.Y. Feb. 4, 2015)

(finding an arbitration clause binding when the user clicked a box acknowledging the terms at

the initial signup to the website and was presented with a hyperlink at the top of the webpage to

usually upheld if “notice of the hyperlinked terms and conditions is present on multiple

successive webpages of the site.” Berkson, 97 F. Supp. 3d at 401 (citing Major v. McCallister,

302 S.W.3d 227, 230–31 (Mo. Ct. App. 2009) (finding a forum selection clause binding when

the hyperlink to the terms and conditions was presented on multiple successive webpages and on

the final page of the website’s sign-up process)).

Finally, courts that have assessed the validity of sign-in-wrap agreements since Berkson

have cited factors such as the size of the font, the possibility that other visual elements on the

screen might obscure the “terms and conditions” statement, and whether the user signed up for

the agreement using a mobile device. Compare Meyer v. Kalanick, 2016 WL 4073012 at *4, *6

(S.D.N.Y. July 29, 2016) (Rakoff, J.) (finding Uber’s terms-of-service agreement not binding

9
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 10 of 19

when the terms-of-service statement “was in a font that was barely legible on [a] smartphone

device . . . [and] beneath two additional buttons”) with Cullinane, 2016 WL 3751652 at *7

(finding Uber’s terms-of-service agreement binding because of the “prominent” placement of the

terms-of-service statement).

2. Application of the Law to Airbnb’s Terms of Service Agreement

The Court finds that Airbnb’s mobile sign-up screen adequately placed Selden on notice

of Airbnb’s Terms of Service, and that he assented to those terms by clicking the sign-up box

and using the service. The text “By signing up, I agree to Airbnb’s Terms of Service” is

conspicuous. See Appendix. It is placed in roughly the middle of the page, in close proximity to

all three sign-up buttons. The text also appears in dark font, in sharp contrast to the white

background. It is, moreover, clearly legible, appropriately sized, and unobscured by other visual

elements. Although the text is not directly under the first or second alternative sign-up buttons,

any reasonably-observant user would notice the text and accompanying hyperlinks. So even if

Selden only clicked “Sign up with Facebook” at the top of the page, he would have seen the

relevant text from a quick glance down the rest of the page. Thus, by choosing to sign up for

Airbnb, Selden manifested his assent to the Terms of Service.2

There is also a wider point to be made, as illustrated at the outset of this opinion. The act

of contracting for consumer services online is now commonplace in the American economy.

Any reasonably–active adult consumer will almost certainly appreciate that by signing up for a

2
Airbnb further asserts that Selden also agreed to the Terms of Service when he created
his two fictitious accounts. Def.’s MCA 9. Selden contends that because he created those
accounts for test purposes only, they did not result in valid agreements. Pl.’s Opp’n MCA 14.
Because the Court finds that Selden agreed to Airbnb’s Terms of Service when he created his
initial account in March 2015, the Court need not reach these arguments.

10
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 11 of 19

particular service, he or she is accepting the terms and conditions of the provider. Notifications

to that effect—be they check boxes or hyperlinks—abound. To be sure, few people may take

time to actually read the user agreements. But ignorance of the precise terms does not mean that

consumers are unaware they are entering contracts by signing up for internet-based services. So,

while the record is silent as to Mr. Selden’s particular history with e-commerce, the prevalence

of online contracting in contemporary society lends general support to the Court’s conclusion

that Selden was on notice that he was entering a contract with Airbnb in this case.

B. Whether Airbnb’s Arbitration Agreement Encompasses Selden’s Discrimination
Claims

Having found that Selden agreed to Airbnb’s Terms of Service, including the mandatory

arbitration clause, the Court next turns to whether the arbitration provision encompasses Selden’s

claims. Again, the provision states that “[the user] and Airbnb agree that any dispute, claim or

controversy arising out of or relating to these Terms or the breach, termination, enforcement,

interpretation or validity thereof, or to the use of the Services or use of the Site or Application

(collectively, ‘Disputes’) will be settled by binding arbitration.” Def.’s MCA, Ex. B, 17

(emphasis added).

Courts applying California law interpret the language “arising out of or relating to” very

broadly.3 California, like most jurisdictions, “embrace[s] a judicial policy strongly in favor of

enforcing arbitration contracts.” Bos Material Handling, Inc. v. Crown Controls Corp., 137 Cal.

App. 3d 99, 105 (Cal. Ct. App. 1982). Courts applying California law “have held such

3
Since the Court finds that a valid agreement exists between Selden and Airbnb, the
choice-of-law clause in Airbnb’s Terms of Service becomes effective and governs the Court’s
interpretation of the agreement’s terms. See Def.’s MCA, Ex. B, 16 (“These Terms will be
interpreted in accordance with the laws of the State of California.”).

11
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 12 of 19

arbitration agreements sufficiently broad” to include claims that “have their roots in the

relationship between the parties which was created by the contract.” Id. at 105–06 (internal

quotations omitted). This language “reaches every dispute between the parties having a

significant relationship to the contract and all disputes having their origin or genesis in the

contract.” Rice v. Downs, 247 Cal. App. 4th 1213, 1224 (Cal. Ct. App. 2016). “To require

arbitration, the factual matters need only touch matters covered by the contract containing the

arbitration clause and all doubts are to be resolved in favor of arbitrability.” Id. (emphasis

added).

Supreme Court precedent instructs federal courts to take the same approach. See Dowley

v. Dewey Ballantine, LLP, 2006 WL 1102768 at *8 (D.D.C. Apr. 26, 2006) (noting that “when

an arbitration agreement contains the dual phrases ‘arising out of or relating to,’ it is proper to

interpret the agreement broadly to cover matters that touch upon the contract to be arbitrable”)

(citing Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 624 (1985)); see

also Prima Paint Corp. v. Flood & Conklin Mgf. Co., 388 U.S. 395, 406 (1967) (noting that the

words “arising out of or relating to” in an arbitration clause are “easily broad enough to

encompass” the asserted claims).

Applying this broad interpretation, it is clear that Selden’s claims of unlawful race

discrimination “arise out of or relate to” his use of the Airbnb service. They therefore fall within

the scope of the mandatory arbitration clause.

C. Whether Airbnb’s Arbitration Agreement is Enforceable

Having concluded that Selden agreed to the mandatory arbitration clause and that the

clause encompasses his claims of unlawful discrimination, the Court must next determine if the

clause is enforceable in this suit. Selden’s numerous objections to enforcing the arbitration

12
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 13 of 19

clause can be boiled down to two main arguments: first, that federal civil rights claims are not

subject to arbitration; and second, that the arbitration clause is unconscionable. Pl.’s Opp’n

MCA 14–28. The Court rejects both arguments.

1. Federal Civil Rights Laws and Arbitration

Federal policy dictates that doubts about the applicability of an arbitration agreement

should be resolved in favor of arbitration. Congress enacted the FAA in 1925 “to reverse the

longstanding judicial hostility to arbitration agreements that had existed at English common law

and had been adopted by American courts, and to place arbitration agreements upon the same

footing as other contracts.” Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20, 24 (1991).

There is no exception for statutory claims. The Supreme Court “has been quite specific in

holding that arbitration agreements can be enforced under the FAA without contravening the

policies of congressional enactments giving [individuals] specific protection against

discrimination prohibited by federal law.” Circuit City Stores, Inc. v. Adams, 532 U.S. 105, 123

(2001). As then-Judge Roberts noted, courts will enforce an agreement to arbitrate a statutory

claim “so long as the agreement does not require the claimant to forgo substantive rights

afforded under the statute.” Booker v. Robert Half Intern., Inc., 413 F.3d 77, 79 (D.C. Cir.

2005).

“If Congress did intend to limit or prohibit waiver of a judicial forum for a particular

claim, such an intent will be deducible from the statute’s text or legislative history, or from an

inherent conflict between arbitration and the statute’s underlying purposes.” Shearson/American

Exp., Inc. v. McMahon, 482 U.S. 220, 227 (1987) (internal quotations omitted). Selden makes a

specific argument that arbitration is inconsistent with the text of Title II, as well as a broader

argument that none of his statutory civil rights claims can be arbitrated. Pl.’s Opp’n MCA 21–

13
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 14 of 19

26. With respect to Title II, Selden emphasizes the following provisions of the statute

concerning jurisdiction and remedies:

(a) The district courts of the United States shall have jurisdiction of proceedings
instituted pursuant to this subchapter and shall exercise the same without regard to
whether the aggrieved party shall have exhausted any administrative or other
remedies that may be provided by law.

(b) The remedies provided in this subchapter shall be the exclusive means of
enforcing the rights based on this subchapter, but nothing in this subchapter shall
preclude any individual or any State or local agency from asserting any right
based on any other Federal or State law not inconsistent with this subchapter,
including any statute or ordinance requiring nondiscrimination in public
establishments or accommodations, or from pursuing any remedy, civil or
criminal, which may be available for the vindication or enforcement of such right.

42 U.S.C. §2000a–6 (emphasis added). Selden argues that “the Congressional intent for ‘where

and how’ [he] can bring his Title II suit is clearly codified” in this portion of the statute. Pl.’s

Opp’n MCA 25. Not so.

The phrase “the district courts of the United States shall have jurisdiction” in the statute

“neither guarantees a right to a federal court trial nor forbids arbitration as an alternate forum.”

Garrett v. Circuit City Stores, Inc., 449 F.3d 672, 678 (5th Cir. 2006); see also Gilmer, 500 U.S.

at 29 (rejecting the argument that “compulsory arbitration is improper because it deprives

claimants of the judicial forum provided by the [statute]”). Nor is arbitration precluded by the

phrase “the remedies provided . . . shall be the exclusive means of enforcing the rights [of Title

II].” Plaintiffs may still vindicate their statutory rights in arbitration. Any arbitration agreement

14
Case 1:16-cv-00933-CRC Document 19 Filed 11/01/16 Page 15 of 19

that prevents them from doing so is invalid. Booker, 413 F.3d at 79. The cited text therefore

does not support Selden’s argument that Title II claims are not subject to arbitration.4

Selden’s broader argument is that there is an inherent conflict between arbitration and the

anti-discrimination objectives of the civil rights statutes under which he brings his claims. He

argues that arbitration is not a neutral proceeding, because businesses are “repeat-player[s]” who

are familiar with arbitration. Pl.’s Opp’n MCA 26. The imbalance of knowledge and experience

favors businesses in the selection of arbitrators, Selden claims, because employees and

consumers “lack financial resources to research arbitrator[s’] past decisions.” Id. (citing Lewis

Maltby, Paradise Lost—How the Gilmer Court Lost the Opportunity for Alternative Dispute

Resolution to Improve Civil Rights, 12 N.Y. L. Sch. J. Hum. Rts. 1 (1994

Case Info

Judge

Samuel K. Feng Track Judge’s New Case

Case No.

(Subscribe to View)

Document Filed Date

June 23, 2020

Case Filing Date

January 22, 2020

County

Parties

For full print and download access, please subscribe at https://www.trellis.law/.

Motion-Secondary: **TRANSFERRED TO SOMONA CO.** JANE DOE ET AL VS. AIRBNB, INC

Preview

Related Topics

Case Info

Parties

Motion-Secondary: TRANSFERRED TO SOMONA CO. JANE DOE ET AL VS. AIRBNB, INC