On behalf of Kazerouni Law Group, APC on Monday, November 10, 2014.
On November 10, 2014, the United States Court of Appeals for the Ninth Circuit rules in favor of the Kazerouni Law Group, APC. See the full Order here. In Knutson v. Sirius XM Radio Inc., the District Court previously dismissed plaintiff’s class action stating that plaintiff had agreed to binding arbitration. Following briefing and oral argument on the issue, the Ninth Circuit reversed the District Court’s decision. In so doing, the Ninth Circuit examined the Federal Arbitration Act (“FAA”). The FAA states that arbitration agreements generally shall be “valid, irrevocable, and enforceable.” 9 U.S.C. § 2. However, where “grounds ‘exist at law or in equity for the revocation of any contract,’ Courts may decline to enforce such agreements.” [See page 10]. Here, the Ninth Circuit held that “no valid agreement exists between Knutson and Sirius XM.” [Id.]. The Court agreed with the Kazerouni Law Group, APC that no mutual assent to enter into a contract with Sirius since the terms of the contract were not provided to plaintiff upon plaintiff’s purchase of his vehicle. [page 11]. In fact, “a reasonable person in Knutson’s position could not be expected to understand that purchasing a vehicle from Toyota would simultaneously bind him or her to any contact with Sirius XM, let alone one that contained an arbitration provision without notice of such terms.” [page 13].