SAN DIEGO (Legal Newsline) – Ancestry.com has fended off a proposed class action lawsuit through the use of an arbitration clause.
On Sept. 30, federal judge Larry Burns in San Diego granted the company’s motion to compel arbitration and denied class action lawyers’ request to stay the case rather than dismiss it.
Plaintiff Marta Carrera Chapple’s individual claims against the company are dismissed with prejudice, and the proposed class’ claims are dismissed without.
“Defendant has argued that the class action waiver is enforceable, and Plaintiff does not dispute this,” Burns wrote. “This case therefore cannot be maintained as a class action. Where, as here, all claims are subject to an arbitration agreement, the court may dismiss the action.”
The lawsuit claimed Ancestry.com enrolls members in programs that feature automatic renewals without first obtaining their affirmative consent, in violation of the California Automatic Renewal Law.
But the company said the arbitration agreement was spelled out clearly in the terms and conditions of its members’ agreements. It says other courts in other class actions have upheld the clause.
“Plaintiff’s arbitration agreement also expresses a clear and unmistakable intent to commit issues of arbitrability to the arbitrator,” the motion to compel says. “Thus, to the extent plaintiff contends her claims are not subject to the arbitration agreement for any reason, this issue must be decided in arbitration.”
Chapple’s lawsuit alleged she never would have signed up for Ancestry.com if she knew it would enroll her in an automatically renewing program. She claimed there are hundreds of other customer complaints posted on various consumer webstites.
Zach Dostart of Dostart Hannink & Coveney is representing the plaintiff.