When you sign up for a new service, like Netflix, Doordash, or Grubhub, you probably have had to click “I agree to [Company’s] Terms of Service,” but you probably didn’t take the time to read what you were agreeing to. So, what do those terms actually say?

Terms of Service and User Agreements usually provide parameters for users of programs to submit claims when something goes wrong. For example, when you don’t get your Grubhub order on time or at all, the Terms of Service or User Agreement will tell you what steps to take, and what recourse is available to you if you want a refund. What if you need to take more drastic measures, like filing a lawsuit? Some Terms of Service or User Agreements will include choice of law provisions – what state laws will apply – and arbitration provisions. Arbitration provisions restrict your ability to file a lawsuit in court, and instead force you to “arbitrate.” Arbitration is a private proceeding between you, the other party and a neutral arbitrator, unlike court proceedings which are usually public proceedings, and you can request a jury trial in some cases. Arbitrators are sometimes attorneys or retired judges, and their decisions are often binding, which is why arbitration is usually disfavored.

A recent case involved a husband’s lawsuit for the wrongful death of his wife who died after eating at a restaurant at Disney World and suffering a fatal allergic reaction. Initially, Disney attempted to dismiss the case because the family agreed to the arbitration clause contained in their Disney Plus subscription. Yes, the streaming subscription that you would think was entirely unrelated to the theme park had an arbitration clause that restricted the husband from bringing his lawsuit in a court of law. Eventually, Disney changed course and no longer sought dismissal under the arbitration provision, understanding the gravity of the incident, but everyone is not always this lucky.

In a recent New Jersey case, a couple was involved in a car accident during an Uber ride home. Attempting to recover for their severe injuries and damages, the couple sued Uber. However, because there was an arbitration clause in the Uber Eats User Agreement, which both the Uber and Uber Eats app platforms share, the couple was unsuccessful in their lawsuit and were directed by the court to arbitrate instead, ultimately dismissing their suit.

Yes, we know it’s annoying and companies make it easy for you to skip through all the boring legal language that you don’t want to read anyway. But if you are signing up for a new subscription or service, it’s important to take a few minutes to read through these agreements to be aware of your requirements and restrictions as a user in the unfortunate event you may have a claim against the company.

If you have a claim that requires arbitration, contact the attorneys at RKW Law Group to help you with your claim.

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