Peters v. Amazon Services LLC
2 F. Supp. 3d 1165
W.D. Wash.2013Background
- Amazon moved to compel arbitration under the FAA after plaintiffs sued for breach-related claims.
- Plaintiffs are former Amazon seller accounts (Lane and Peters) alleging improper timely remittance of funds and related misconduct.
- Lane signed multiple BSA-based agreements granting arbitration and a class-action waiver; Peters signed the BSA in 2012.
- BSA contains broad arbitration provision and a forum selection clause; Participation Agreement is distinct but not used by all sellers.
- The court must determine if a valid arbitration agreement exists and whether the claims fall within its scope, staying the case if arbitration is compelled.
- The court found Lane and Peters validly agreed to arbitration and that the claims fall within the arbitration scope, issuing a 6-month stay or pending arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Existence of a valid arbitration agreement | Plaintiffs contend no binding agreement binds them to arbitration. | BSA and participation-based assent created a valid arbitration agreement. | Valid arbitration agreement exists. |
| Scope of the arbitration clause | Claims relate to past conduct not covered by the arbitration clause. | Clause broadly covers any dispute related to the agreement or use of services, including post-signing claims. | Claims fall within arbitration scope. |
Key Cases Cited
- AT&T Technologies, Inc. v. Communications Workers of Am., 475 U.S. 643 (1986) (arbitration presumptively covers disputes)
- Green Tree Fin. Corp.-Ala. v. Randolph, 531 U.S. 79 (2000) (burden on party resisting arbitration)
- Chiron Corp. v. Ortho Diagnostic Sys., Inc., 207 F.3d 1126 (9th Cir. 2000) (valid agreement to arbitrate and scope analysis)
- Three Valleys Mun. Water Dist. v. E.F. Hutton & Co., 925 F.2d 1136 (9th Cir. 1991) (evidence for interpreting arbitration agreements)
- Rep. of Nicaragua v. Std. Fruit Co., 937 F.2d 469 (9th Cir. 1991) (most minimal indication of intent to arbitrate must be given effect)
