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