Camilo v. Lyft, Inc.
Camilo v. Lyft, Inc.
Opinion of the Court
*437On October 17, 2017, Gustavo Camilo (hereinafter, "Plaintiff" or "Mr. Camilo") filed this putative class action in New York state court under the Class Action Fairness Act against Lyft, Inc., Endor Car & Driver, LLC, Tri-City, LLC, Tri-State Car and Driver, LLC, Black Car Assistance Corporation, and Black Car Operators Injury Compensation Fund, Inc. In his Complaint, Mr. Camilo alleges a violation of New York Labor Law ("NYLL") § 193 for unlawful wage deductions, as well as a claim for breach of contract of Lyft's Terms of Service, fraud, and unjust enrichment. On June 11, 2018, Lyft, Inc., Endor Car & Driver, LLC, Tri-City, LLC, and Tri-State Care and Driver, LLC (collectively, "Defendants") moved to compel the arbitration of Mr. Camilo's claims and stay the litigation against Defendants pending the resolution of arbitration.
PROCEDURAL HISTORY
As stated, Plaintiff filed this putative class action in New York state court on October 17, 2017. ECF No. 1, Ex. 1 ("Compl."). On November 21, 2017, this Court received a Notice of Removal on the basis of diversity jurisdiction. ECF No. 1. On December 21, 2017, Plaintiff filed a Motion to Remand the proceedings back to New York state court, along with supporting affidavits, a Memorandum of Law, and a Declaration. ECF Nos. 10-14. Defendants filed their respective Oppositions to Plaintiff's Motion on January 17 and February 12, 2018. ECF Nos. 18, 28. On March 19, 2018, the Court denied Plaintiff's Motion to Remand. ECF No. 34.
While the Parties were litigating the Motion to Remand, Defendants also sought leave to file a motion to compel arbitration. ECF No. 16. On March 13, 2018, the Court granted Defendants leave to file their Motion. ECF No. 33. The Court also indicated that the then pending Supreme Court decision in Epic Systems Corp. v. Lewis , --- U.S. ----,
BACKGROUND
Although familiarity with the factual background and proceeding arguments is assumed, the Court briefly revisits the facts relevant to the disposition of this Motion.
Plaintiffs in this case were employed by Lyft and its subsidiaries as drivers. Compl. ¶ 1. Lyft's Terms of Service Agreement, which is updated periodically, governs the terms and conditions for drivers and riders (collectively, "users"). Def.'s Mem. Supp. Mot. Compel, 3, ECF No. 38 ("Def's Mem."). On September 30, 2016, Lyft updated their Terms of Service Agreement. Id ; Pl.'s Opp. Mot. Compel, 5, ECF No. 43 ("Opp."). When Lyft's Terms of Service are updated, in order for a user to continue using Lyft's rideshare services, they must indicate their acceptance of the new Terms of Service Agreement by pushing the "I ACCEPT" button that presents itself on the screen when the Lyft Platform *438is opened following an update. Def's Mem. 3; Opp. 5. The Lyft Platform provides users with an opportunity to scroll through the entire updated Terms of Service before accepting the terms.
The second paragraph on the first page of the Terms of Service indicates that "THIS AGREEMENT CONTAINS PROVISIONS THAT GOVERN HOW CLAIMS YOU AND LYFT HAVE AGAINST EACH OTHER CAN BE BROUGHT ..." Laufer-Edel Dec. Supp. Mot. Compel, Ex. 1 ("Terms of Service"). The second paragraph goes on to state that any claims against Lyft must be submitted to final and binding arbitration.
"YOU AND LYFT MUTUALLY AGREE TO WAIVE OUR RESPECTIVE RIGHTS TO RESOLUTION OF DISPUTES IN A COURT OF LAW BY A JUDGE OR JURY AND AGREE TO RESOLVE ANY DISPUTE BY ARBITRATION, as set forth below."
On November 21, 2017, Plaintiffs filed a class action against Lyft and its subsidiaries alleging unlawful wage deductions under NYLL § 193, breach of contract, fraud, and unjust enrichment. See Compl. Defendants responded by filing their Motion to Compel Arbitration claiming that the Federal Arbitration Act requires enforcement of the Arbitration Agreement with Camilo, particularly in light of the Supreme Court's recent opinion in Epic Systems. See Def's Mem. Plaintiff responded by claiming that Lyft's Terms of Service were unconscionable and thus unenforceable. Opp. 7. The precedent set by Epic Systems controls the issues presented in this case and indicates that they are fit for arbitration in accordance with Lyft's assented-to Terms of Service.
LEGAL STANDARD
The Federal Arbitration Act ("FAA") governs arbitration agreements. See
"A written provision in any ... contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction ... or an agreement in writing to submit to arbitration an existing controversy arising out of such a contract, transaction, or refusal, shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract."
"Parties are not required to arbitrate unless they have agreed to do so."
*439Meyer v. Uber Technologies, Inc. ,
The FAA requires courts to "rigorously" enforce arbitration agreements according to their terms. Epic Systems ,
DISCUSSION
As stated, the FAA governs arbitration agreements that are both in writing and involve commerce.
I. Mr. Camilo Entered Into A Valid Contract With Lyft That Included A Valid Arbitration Agreement
In accordance with state law principles, the creation of a contract rests on the manifestation of an agreement between parties. See Specht ,
The valid contract between Lyft and the users, assented to upon clicking "I ACCEPT," contained a broad and extensive arbitration clause. Terms of Service, Section 17. The second paragraph of the updated Terms of Service notified the user of the arbitration provisions contained within, and also gave an overview of the requirements, including that all arbitration must be conducted on an individualized basis.
Thus, because Plaintiff manifested his assent to an agreement with Lyft by clicking "I Accept," and because Epic Systems states that a party may require individualized rather than class arbitration, this Court finds that Mr. Camilo entered into a valid and enforceable Arbitration Agreement with Lyft.
II. The Disputes At Issue Come Within The Scope Of The Arbitration Agreement
Not only is the agreement to arbitrate valid and enforceable, but the dispute squarely fits within the scope of the Arbitration Agreement. See Terms of Service. The Arbitration Agreement states that arbitration is required for "ALL DISPUTES AND CLAIMS BETWEEN US."
Thus, because there is a valid and enforceable contract, and because the disputes fall within the scope of the Arbitration Agreement contained within that contract, the issues are fit to be resolved in accordance with the terms set forth in the Arbitration Agreement.
CONCLUSION
For the reasons set forth by the Court, Defendant's Motion to Compel Arbitration is hereby GRANTED. Litigation in this case is hereby STAYED pending the resolution *441of arbitration, pursuant to
SO ORDERED.
Users were also given the opportunity to opt out of the arbitration provisions within a 30-day period after assenting to the updated Terms of Service. See Terms of Service.
Reference
- Full Case Name
- Gustavo CAMILO, on behalf of himself and others similarly situated v. LYFT, INC.
- Cited By
- 3 cases
- Status
- Published