Partner Ernest Aduwa comments on the news that Disney is looking to dismiss a wrongful death lawsuit because of the ‘Binding Arbitration and Class Action Waiver’ the claimant signed up to in a free trial of its streaming service Disney+.
Ernest’s comments were published in BBC News Online, The Daily Mirror and Metro.
The wrongful death lawsuit stems from the death of a women due to a sever allergic reaction after eating at restaurant at a Disney owned theme park. Disney argues its terms of use, which the claimant agreed to when creating his Disney account in 2019, means they have to settle out of court due to a ‘Binding Arbitration and Class Action Waiver’, applying to “all disputes” involving “The Walt Disney Company or its affiliates”.
Ernest commented: “The core issue in law is whether the small print in their subscription package, that forces any claim against Disney to go to arbitration, applies to an alleged wrongful death at a Disney owned theme park.
“Disney’s argument that accepting their terms and conditions for one product covers all interactions with that company is novel and potentially far reaching. Arbitration clauses are typically enforced when the dispute arises directly from the context in which the agreement was made. Here, the wrongful death claim arises from the alleged negligence at a Disney-operated venue, not a matter connected to streaming services or a ticket purchase.
“There is also a broader issue of fairness. Enforcing such an expansive arbitration clause could be seen as ‘over reaching’, especially when it potentially deprives the claimants of their right to a jury trial in a matter as serious as a wrongful death. The courts are often hesitant to enforce arbitration agreements that result in an unjust outcome or where the scope of the agreement seems unreasonably broad.
“Additionally, Mr Piccolo’s legal team has argued that Disney waived their right to compel arbitration by initially responding to the lawsuit without raising this issue.
“Disney are pushing the envelope of contract law, and their success in defending this claim is far from certain. The courts will have to consider, on balance, if the arbitration clause in a contract for a streaming service can really be applied to as serious an allegation of wrongful death through negligence at a theme park. The public interest in ensuring accountability in cases involving potential life-threatening negligence could weigh heavily against Disney’s bid to move this matter out of the courts and into arbitration.”