ST. LOUIS (Legal Newsline) – Ignorance is no defense, says Sam’s Club as it fights as a class action lawsuit over membership perks.
It is the second time Sam’s has asked a federal judge to compel arbitration or throw out the lawsuit, which was amended after the first motion to dismiss in June. This motion, filed July 24, focuses on the terms of arbitration in the membership of Virginia Herrmann, who filed suit against the company in St. Louis federal court.
Herrmann says she bought a $45 membership that allowed her to shop before regular hours but that after it renewed, she was stopped early one morning and told she needed to upgrade to be able to check out before 9 a.m.
She claims she is not bound to the arbitration agreement introduced in the 2020 terms and conditions. She accepted those terms when she renewed her existing membership, the company said, by not terminating her membership before Feb. 1.
“Plaintiff states that she is not certain she saw the offer and – as it contradicts her allegations – there is a purported dispute as to contract terms,” attorneys for Sam’s wrote.
“In fact, Plaintiff’s failure to read the arbitration clause does not excuse her from complying with it. And courts must dismiss, not grant discovery where the plain terms of the actual contract contradict the allegations of the complaint.
“This case is frivolous and should be referred to arbitration or dismissed.”
Judge Stephen Limbaugh Jr. will have to sort it all out.
The terms with the arbitration provision took effect Feb. 1. Herrmann says she didn’t participate in auto-renewal or expressly renew her membership. Sam’s says this was required to terminate her membership.
Herrmann also says she does not remember seeing the new terms in mailers said to have been sent by Sam’s in January. Sam’s says “mailing creates a presumption of receipt.
Herrmann also says she emailed Sam’s after the Feb. 2 renewal date to reject the new terms. That’s not good enough to void them, Sam’s says.