Arbitration

In recent years, numerous businesses have successfully enforced broad arbitration clauses, particularly those embedded in terms and conditions of online service agreements. We previously discussed a noteworthy example from a recent New Jersey appeals panel decision.1 The underlying cause of action in that case stemmed from a motor vehicle collision that occurred while plaintiff was a passenger in a ride share vehicle. The court sent the dispute to arbitration, enforcing an arbitration clause that was included in an the rideshare company’s food-delivery agreement that plaintiff’s daughter had agreed to when ordering food. Although an entirely different set of facts, the arbitration clause contained in the food delivery service agreement was deemed applicable to the claims of a passenger in a rideshare vehicle.2 This is just one recent example of how defendant corporations have succeeded in enforcing ostensibly unrelated arbitration clauses to a spectrum of tangential claims. Indeed, arbitration provisions have proven remarkably effective across a wide spectrum of legal matters, including personal injury claims, discrimination suits, and potentially even antitrust cases. Courts have shown a broad willingness to generally enforce arbitration clauses, including those included in “clickwrap” agreements, which require users to agree to terms and conditions before using a website, completing a software installation, or making an online purchase, that subject consumers to arbitration provisions through everyday digital services.

McGinty v. Zheng, No. A-1368-23, 2024 WL 4248446 (N.J. Super. Ct. App. Div. Sept. 20, 2024)

On March 31, 2022, a lawyer and her husband sustained personal injuries after their rideshare driver ran a red light and collided with another vehicle.[1] The lawyer underwent numerous surgeries and other procedures after sustaining cervical and lumbar spine fractures, rib fractures, a protruding hernia, traumatic injuries to her abdominal wall and pelvic floor, and other physical injuries.[2] She was unable to work for over 12 months after the accident, until April 23, 2023.[3] Her husband sustained a fractured sternum and fractures to his left arm and wrist, for which he underwent an operation and received a bone graft.[4]

In October 2023, a New York medical doctor sat down for a fateful meal with her husband and her mother-in-law at a Florida restaurant owned by the adjacent theme park.[1] The doctor, who suffered from severe nut and dairy allergies, received numerous confirmations from restaurant staff that the food she ordered complied with her dietary restrictions.[2] Before selecting the restaurant, she relied on statements made on the theme park company’s website that the restaurant offered allergen-free foods.[3] After dinner, while perusing nearby shops by herself and away from her family, the doctor suffered a severe allergic reaction.[4] She self-administered an epi-pen and was rushed to the hospital but died as a result of anaphylaxis due to elevated levels of dairy and nut in her system.[5]