March 03, 2020 Top Story

Court Enforces Arbitration Clause in Email

Decision highlights importance of clearly worded arbitration agreements

By Jonathan R. Engel

A federal court granted a motion to compel arbitration based on the incorporation by reference of American Arbitration Association (AAA) rules on a link in a purchase confirmation email. In the wake of recent pro-arbitration decisions by the U.S. Supreme Court, the decision prompted ABA Section of Litigation leaders to recommend clear written agreements on arbitrability for those wishing to avoid prolonged litigation on this threshold issue.

Unsolicited texts

Unsolicited texts

iStockphoto by Getty Images

Enforcing the Arbitration Agreement

In Silverman v. Move, Inc., a real estate agent sued Move, Inc., in the U.S. District Court for the Northern District of California over unsolicited text messages she alleged violated the Telephone Consumer Protection Act. The agent had purchased marketing services by telephone from an account executive at Move who told her to expect an email detailing the terms of her agreement with the company. The email contained a link to specific terms and a warning that she was agreeing to those terms unless she canceled within three days.

Premium Content For:
  • Litigation Section
Join - Now