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McBride v. GoDaddy.com, Inc.
2:10-cv-00940
D. Ariz.
Sep 27, 2011
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Background

  • From 2004–2007, Crabb and McBride used Go Daddy to register five domain names and paid about $10 per registration/renewal.
  • Go Daddy parked the plaintiffs’ registered domains with advertising on Go Daddy pages, generating minimal revenue for Go Daddy.
  • Plaintiffs sued for unjust enrichment, trespass, and breach of good faith and fair dealing, seeking class certification.
  • Go Daddy argued the Universal Terms of Service (UTS) incorporated the Parked Page Service Agreement, giving contractual authority to park ads.
  • The dispute centers on whether the Parked Page Service Agreement was incorporated by reference into the UTS for domain-name registrations.
  • Plaintiffs moved for summary judgment on lack of contractual authority; Go Daddy cross-moved for summary judgment on contract and related issues; the court granted one motion and denied the other.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the UTS incorporated the Parked Page Service Agreement by reference. Plaintiffs: incorporation was not clear/unequivocal for domain registrations. Go Daddy: UTS clearly incorporated Parked Page Service Agreement via reference. Yes—incorporation was not clear and unequivocal; Parked Page Agreement not incorporated.
Whether Go Daddy had contractual authority to park Plaintiffs’ domains. Plaintiffs lacked contractual authority to park domain names. Parked Page Service Agreement provides the authority if incorporated. Genuine issue resolved in favor of Plaintiffs; authority not established.
Whether Go Daddy’s cross-motion on good faith/fair dealing was proper under the scheduling order. Only contract-related issues were intended for early summary judgment. Cross-motion relates to core contract issues. Denied as outside the scope; not proper for early cross-motion.

Key Cases Cited

  • Scholten v. Blackhawk Partners, 184 Ariz. 326, 909 P.2d 393 (Ct. App. 1995) (contract interpretation is a matter of law; ambiguities resolved against the drafter)
  • United California Bank v. Prudential Insurance Co. of America, 140 Ariz. 238, 268, 681 P.2d 420 (Ct. App. 1983) (incorporation by reference requires a clear and unequivocal reference)
  • Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (1986) (summary judgment standard; rational trier of fact)
  • Celotex Corp. v. Catrett, 477 U.S. 317 (1986) (summary judgment burden-shifting framework)
  • Abrams v. Horizon Corp., 137 Ariz. 73, 669 P.2d 51 (1983) (contra proferentem/ambiguities against drafter)
  • Bjornstad v. Senior American Life Insurance Co., 599 F. Supp. 2d 1165 (D. Ariz. 2009) (applies contra proferentem; contract interpretation principles)
Read the full case

Case Details

Case Name: McBride v. GoDaddy.com, Inc.
Court Name: District Court, D. Arizona
Date Published: Sep 27, 2011
Docket Number: 2:10-cv-00940
Court Abbreviation: D. Ariz.