804 F. Supp. 2d 1196

Gayen HANCOCK et al., Plaintiffs, v. AMERICAN TELEPHONE AND TELEGRAPH COMPANY, INC., et al., Defendants.

No. CIV-10-822-W.

United States District Court, W.D. Oklahoma.

Aug. 11, 2011.

*1198Jason E. Robinson, Lydia J. Barrett, Richard L. Denney, Denney & Barrett, Norman, OK, Larry E. Coben, Coben & Associates, Scottsdale, AZ, Leon R. Russell, Russell & Shiver, Dallas, TX, Marcus W. Viles, Sr., Mark C. Menser, Viles and Beckman, Myers, FL, Robert M.N. Palmer, Law Offices of Palmer Oliver P.C., Springfield, MO, for Plaintiffs.

Cindy D. Hanson, James H. Walker, John P. Jett, Kilpatrick Townsend & Stockton LLP, Atlanta, GA, Curtis M. Long, Fellers Snider Blankenship Bailey & Tippens, Tulsa, OK, for Defendants.

ORDER

LEE R. WEST, District Judge.

This matter comes before the Court on the Motion to Dismiss or Alternatively to Compel Arbitration and Dismiss or Transfer filed by defendant BellSouth Telecommunications, Inc. (“BellSouth”). Plaintiff James Bollinger has responded in opposition.1 Based upon the record, including BellSouth’s reply and Bollinger’s sur-reply, the Court makes its determination.

In addition to the movant, Bollinger and his three co-plaintiffs, Gayen Hancock, *1199David Cross and Montez Mutzig, have sued twelve (12) other entities: American Telephone and Telegraph Company, Inc.,2 Pacific Bell Telephone Company, Illinois Bell Telephone Company, Indiana Bell Telephone Company, Inc., Michigan Bell Telephone Company, Nevada Bell Telephone Company, The Ohio Bell Telephone Company, Wisconsin Bell, Inc., The Southern New England Telephone Company, AT & T Southeast, Inc., Southwestern Bell Telephone Company, named in the style as Southwestern Bell Telephone Company, L.P., and AT & T Operations, Inc. (“AT & T Ops”).3

The plaintiffs have sought to represent a nationwide class of consumers who purchased and/or subscribed to services designed, manufactured, marketed, advertised and sold by the various defendants under the brand name “U-verse.” See Doc. 1 at 2, ¶ 1; e.g., id. at 5, ¶ 26. The plaintiffs have complained that U-verse service, which generally includes three bundled or packaged components — television (“TV”), voice over Internet protocol (“VOIP” or “Voice”) and Internet, is “plagued by defects and deficiencies,” id. at 2, ¶ 2, and although “hyped and over-promoted as a technological advance ... [has] fail[ed] of its essential purpose.... ” Id. ¶ 3.

The plaintiffs have asserted claims under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1961 et seq., as well as under state law for fraud, civil conspiracy, conversion, unjust enrichment, breach of the implied covenant of good faith and fair dealing and breach of contract, and they have sought monetary, equitable and declaratory relief.

Bollinger is a citizen and resident of the State of Florida. E.g., Doc. 1 at 3, ¶ 11. He has alleged that he purchased, or subscribed to, U-verse in September 2009. E.g., id. at 11, ¶ 31.4

Because U-verse services are provided by the subsidiary operating company according to the residence of the consumer, Bollinger, whose service and billing address is in the State of Florida, purchased or subscribed to services provided by movant BellSouth, the regional operating company for Florida.5 AT & T Ops “is the entity ultimately responsible for AT & T U-verse in the area[ ] provisioned by ... BellSouth____” Declaration of Jeff Weber (October 20, 2010) at 2, ¶ 5.

The three U-verse components are governed by terms of service. The two components, TV and VOIP, are governed by a single set of terms of service; “AT & T U-verse Voice and TV General Terms of Ser*1200vice” (“TV/Voice TOS”). Internet service is governed by separate terms of service: “AT & T High Speed Internet Terms of Service/attnet Terms of Use” (“Internet TOS”).

In the instant motion, BellSouth not only has challenged this Court’s exercise of personal jurisdiction over it, but also, in the alternative, has moved the Court to compel arbitration of Bollinger’s Internet-related claims pursuant to an arbitration agreement between the parties. BellSouth has further moved the Court to dismiss Bollinger’s TV/Voiee-related claims6 under Rule 12(b)(3), F.R.Civ.P., or, alternatively, to transfer such claims to the United States District Court for the Western District of Texas under title 28, section 1404(a) of the United States Code.

In connection with the latter arguments, BellSouth has contended that Bollinger, the only plaintiff to whom it provided service, was required to, and did, accept the TV/Voice TOS, including its forum selection provision,7 before the U-verse TV and/or VOIP services were installed at his residence. The TV/Voice TOS, which was in effect at the time Bollinger purchased, or subscribed to, U-verse services and on which BellSouth has relied, reads in pertinent part:

These TOS and the relationship between you and AT & T will be governed by the laws of the State of Texas without regard to its conflict of law provisions,8 and you and AT & T agree to submit to the personal and exclusive jurisdiction of the courts located within the county of Bexar County, Texas.9

Doc. 56-3 at 30, ¶ 19(c).

Although forum selection clauses, like the foregoing clause, “are prima facie *1201valid and should be enforced ...The Bremen v. Zapata Off-Shore Co., 407 U.S. 1, 10, 92 S.Ct. 1907, 32 L.Ed.2d 513 (1972), the existence of such a clause neither imposes an absolute duty, nor endows an absolute right, to litigate the dispute in the named forum. Rather, a clause’s applicability as well as its enforceability in a given case depends upon the clause’s classification-mandatory or permissive, e.g., Excell, Inc. v. Sterling Boiler & Mechanical, Inc., 106 F.3d 318, 321 (10th Cir.1997), and upon its reasonableness. E.g., Milk ‘N’ More, Inc. v. Beavert, 963 F.2d 1342, 1344 (10th Cir.1992) (clause enforced “unless shown to be unreasonable”) (citations omitted).

“ ‘Mandatory forum selection clauses contain clear language showing that jurisdiction is appropriate only in the designated forum.’ ” K & V Scientific Co. v. Bayerische Motaren Werke Aktiengesellschaft, 314 F.3d 494, 498 (10th Cir.2002) (quoting Excell, Inc., 106 F.3d at 321). Permissive forum selection clauses, “ ‘[i]n contrast, ... authorize jurisdiction in a designated forum, but do not prohibit litigation elsewhere.’ ” Id. (quoting Excell, Inc., 106 F.3d at 321).

The Court finds that the forum selection clause set forth in the TV/Voice TOS in effect at the time Bollinger purchased, or subscribed to, U-verse services is mandatory. The first phrase of the clause, the choice of law provision, dictates that the TVA/Voice TOS and the relationship between the consumer and AT & T will be governed by Texas law. The second, and generally dispositive phrase, specifies that both the customer “and AT & T agree to submit to the personal and exclusive jurisdiction of the courts located within the county of Bexar County, Texas.” Doc. 56-3 at 30, ¶ 19(c).

Such language is unambiguous, unequivocal and obligatory. E.g., Milk ‘N’ More, 963 F.2d at 1345-46 (clause stating “Venue shall be proper ... in Johnson County, Kansas,”’ deemed mandatory). Accordingly, venue in any forum other than a “court[ ] located within the county of Bexar County, Texas,” is improper, e.g., K & V Scientific Co., 314 F.3d at 499 (circuits agree that where venue is specified with mandatory language, clause is enforced), unless Bollinger, as the party resisting enforcement of the clause, can demonstrate that its enforcement in this case would be “unfair or unreasonable.” Excell, Inc., 106 F.3d at 321 (citation omitted). See The Bremen, 407 U.S. at 10, 92 S.Ct. 1907 (forum selection clauses should be enforced unless shown by resisting party to be unreasonable).

In an attempt to do so, Bollinger has first argued that he cannot be bound by the terms of the forum selection clause because there is no “empirical and verifiable evidence that [he] ... ever accepted or agreed to the forum selection clause.” Doc. 69 at 6; e.g., Doc. 1 at 22, ¶ 77 (plaintiffs “never provided copy [of Terms of Service]”).10

David Saigh is an area manager for network process and quality in the AT & T *1202Network Operations business unit of AT & T Ops, and he is charged with the development of the methods and procedures used by premises technicians in the installation of U-verse services. Saigh has stated

(1) that “[w]hen a customer places an order for U-verse, it is sent to the Global Craft Access System (‘GCAS’) where [premises [technicians receive and review the order[,]” Declaration of David Saigh (October 19, 2010) at 3, ¶ 6 (“Saigh Declaration”);

(2) that “[standard installation practice requires the [premises [technician to ... provide a Welcome Kit containing the printed TV/Voice TOS to the customer for the customer’s review[,]” id. ¶ 7;

(3) that “[according to standard installation procedure, the [premises [technician provides the customer with an opportunity to review the TV/Voice TOS before the installation of U-verse services and has the customer acknowledge and agree to the TV/Voice TOS on the technician’s laptop with the GCAS web application[,]” id. ¶ 8; and

(4) that “[acceptance of the TV/Voice TOS is required before installation proceeds.” id. ¶ 10.

Saigh has further stated that because customer acceptance of the TV/Voice TOS is required before installation of the TV and VOIP components, e.g., id. (if customer refuses to accept TV/ Voice TOS, technician cannot install U-verse services), Bollinger “would have necessarily agreed to the TV/Voice TOS____” Id. at 4, ¶ 13.

Bollinger has responded that because the premises technician performed the installation and because Saigh has admitted that “the customer acknowledge^] and agree[s] to the TV/Voice TOS on the technician’s laptop ...,” Saigh Declaration at 3, ¶ 8, there is no evidence that he (Bollinger) accepted the TV/Voice TOS and/or the forum selection clause set forth therein. See also Doc. 1 at 22, ¶ 77 (plaintiffs “never provided copy [of Terms of Service]”).

David C. Chicoine is a senior specialist network support in the business unit of AT & T Ops, and his job responsibilities include support of the GCAS used by premises technicians in connection with U-verse installation. Chicoine has stated

(1) that “[b]efore a [premises [t]echnician installs U-verse service in the customer’s home, the Acceptance Form[, for use by customers such as Bollinger,] is displayed electronically on the GCAS web application for the customer to read[,]” Declaration of David C. Chicoine (October 19, 2010)11 at 2, ¶ 4 (“Chicoine Declaration”);

(2) that “[a]fter the customer has an opportunity to read the Acceptance Form,12 the customer must accept the TV/ Voice TOS by clicking on the T acknowledge’ button displayed on the GCAS web application[,]” id. at 3, ¶ 5;

(3) that “[a]fter the customer indicates his acceptance of the TV/Voice TOS in this *1203manner,13 the Acceptance Form is populated with the customer’s name, order number, account number, and date of acceptance[,]” id. ¶ 7; and

(4) that “[t]he customer’s Acceptance Form is then stored on a server and associated with the customer’s account.” Id. ¶ 8.

BellSouth has submitted the Acceptance Form for Terms of Service for Purchase and Use of AT & T U-verse Voice and/or AT & T U-verse TV that was generated when Bollinger purchased, and subscribed to, U-verse TV and has shown that the installation of the U-verse TV services was completed on July 20, 2009, See Doc. 58-1, Exhibit C. In response, Bollinger’s counsel has concluded that “any ‘clicking’ or ‘accepting’ was done quickly by the installer without giving an explanation to ... [Bollinger] or an opportunity for ... [Bollinger] to read hundreds of pages of contracts ‘on the installer’s time.’ ” Doc. 69 at 9.

Bollinger, himself, however, has provided no evidence,14 through affidavit or otherwise, that shows that he was not “provide[d] a Welcome Kit containing the printed TV/Voice TOS ... for [his] ... review,” Saigh Declaration at 3, ¶ 7, that he was denied the “opportunity to review the TV/Voice TOS before the installation of [his] U-verse services,” id. ¶ 8, or that the premises technician failed to advise him about the TV/Voice TOS before the technician “elick[ed] ... the T acknowledge’ button displayed on the GCAS web application.” Chicoine Declaration at 3, ¶ 5. Indeed, Bollinger has only speculated about his lack of acceptance of, or agreement to, the TV/Voice TOS,15 and he has produced no evidence that conflicts with BellSouth’s version of the installation process.

implicates every concept of fraud, deceit, unfairness, overreaching, [and denial of] access to justice cited as a basis for *1204rejection by [the United States Supreme Court]....

*1203In an attempt to circumvent the enforcement of the mandatory forum selection clause16 in this case, Bollinger has argued that enforcement would be unfair since the TV/Voice TOS

*1204Doc. 69 at 27.

Case law establishes that “click-wrap” contracts17 are enforceable under applicable state law and federal law, e.g., Salco Distributors, LLC v. iCode, Inc., 2006 WL 449156 (M.D.Fla.2006), and “[t]he fact that a forum-selection clause is contained within a so-called ‘clickwrap agreement,’ where a user accepts a website’s terms and conditions, does not in and of itself render the clause invalid.” Segal v. Amazon.com, Inc., 763 F.Supp.2d 1367, 1369 (S.D.Fla.2011).18

Furthermore, forum selection clauses do not contravene any federal or state public *1205policy, and “a party resisting enforcement [of such a clause] carries a heavy burden of showing that the provision itself is invalid due to fraud or overreaching or that enforcement would be unreasonable and unjust under the circumstances.” Riley v. Kingsley Underwriting Agencies, Ltd., 969 F.2d 953, 957 (10th Cir.1992) (citations omitted).

In this regard, Bollinger has contended that “[t]he Terms of Service are boilerplate, adhesion instruments,” Doc. 1 at 22, ¶ 77, and that “[t]he fine print in the Terms of Service is unconscionable and grossly inadequate to protect ... [him since he] ... had no meaningful choice in determining the limitations ....” Id.

Neither these allegations in the complaint however nor counsel’s conclusory statements in the response regarding overreaching19 are sufficient at this stage in light of the showing made by BellSouth. Moreover, Bollinger has advanced no compelling reason why he would be seriously inconvenienced, because of financial limitations or other concerns, or why he would be deprived of his day in court if required to try his TV/Voice-related claims in a “courtf ] located within the county of Bexar County, Texas.”20

The Court finds that the testimony of the various declarants and the exhibits establish the existence of a mandatory forum selection clause, and that in the absence of any showing by Bollinger, by affidavit or otherwise, that enforcement of this clause would be unfair or unreasonable, BellSouth is entitled to dismissal of Bollinger’s TV/Voice-related claims against it.

BellSouth has also challenged Bollinger’s Internet-related claims and has argued that the Court should dismiss these claims because Bollinger is compelled to arbitrate them pursuant to the terms of a mandatory arbitration clause21 that is enforceable under the Federal Arbitration Act (“FAA”), 9 U.S.C. § 1 et seq., as well as applicable state law.

Section 2 of the FAA, which has been described by the United States Supreme *1206Court as “the ‘primary substantive provision of the Act,’ ” AT & T Mobility LLC v. Concepcion, — U.S.-, 131 S.Ct. 1740, 1745, 179 L.Ed.2d 742 (2011) (quoting Moses H. Cone Memorial Hospital v. Mercury Construction Corporation, 460 U.S. 1, 24, 103 S.Ct. 927, 74 L.Ed.2d 765 (1983)), and “as reflecting both a ‘liberal federal policy favoring arbitration,’ Moses H. Cone, 460 U.S. at 24,103 S.Ct. 927, and the ‘fundamental principle that arbitration is a matter of contract,’ ” 131 S.Ct. at 1745 (quoting Rent-A-Center, West, Inc. v. Jackson, — U.S. -, 130 S.Ct. 2772, 2776, 177 L.Ed.2d 403 (2010)), provides in relevant part that

[a] written provision in ... a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction ... or an agreement in writing to submit to arbitration an existing controversy arising out of such a contract [or] transaction ... shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.

9 U.S.C. § 2.

Sections 3 and 4 of the Act “establish[ ] [the] procedures by which federal courts implement [section] 2’s substantive rule.” Rent-A-Center, 130 S.Ct. at 2776. Under section 3,

[i]f any suit ... be brought in any of the courts of the United States upon an issue referable to arbitration under an agreement in writing for such arbitration, the court in which such suit is pending, upon being satisfied that the issue involved in such suit ... is referable to arbitration under such agreement, shall on application of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement....

9 U.S.C. § 3.22 Section 4 further provides that

[a] party aggrieved by the alleged failure ... or refusal of another to arbitrate under a written agreement for arbitration may petition any United States district court which, save for such agreement, would have jurisdiction ... in any civil action ... of the subject matter of a suit arising out of the controversy between the parties,23 for an order directing that such arbitration proceed in the manner provided for in such agreement. ... The court shall hear the parties, and upon being satisfied that the making of the agreement for arbitration or the failure to comply therewith is not in issue, the court shall make an order directing the parties to proceed to arbitration in accordance with the terms of the agreement.... If the making of the arbitration agreement or the failure, neglect, or refusal to perform the same be in issue, the court shall proceed summarily to the trial thereof.... Where such an issue is raised, the party alleged to be in default may ... on or before the return day of the notice of application, demand a jury of such issue, and upon such demand the court shall make an order referring the issue ... to a jury in the manner provided by the Federal Rules of Civil Procedure....

*1207 Id. § 4.24

Before “the [C]ourt shall make an order directing the parties to proceed to arbitration,” id., as requested by BellSouth, the Court must first find that a written agreement to arbitrate exists between Bollinger and BellSouth,25 and that Bollinger “is [therefore] bound by a contractual duty to arbitrate.... ” ARW Exploration Corporation v. Aguirre, 45 F.3d 1455, 1460 (10th Cir.1995).26

Michael Frias is employed by AT & T Ops as a senior product manager, and his *1208duties include serving as product manager for U-verse High Speed Internet customer registration and activation. According to Frias, new customers who subscribe to Internet U-verse service do so by “complet[ing] an online registration process,” Declaration of Michael Frias (October 19, 2010) at 2, ¶ 3 (“Frias Declaration”), and that

[u]ntil this process is completed the new customer will automatically be directed to the U-verse registration page every time he ... attempts to connect to the Internet using a web browser over his ... U-verse High Speed Internet connection.

Id.

Frias has stated

(1) that “[d]uring the course of the registration process, the new customer is presented with a screen that displays the [then-current] Internet Terms of Service[,]” id.; and

(2) that “to proceed to the next step of the registration process, the customer must click a button labeled T Agree[.]’ ” Id.

The Internet TOS advises new customers, such as Bollinger to read the Internet TOS carefully, see Doc. 56-1 at 64, and it further advises that a customer’s “registration, payment for or use of the Site and/or Service constitutes ... [his] agreement to be bound by the ... terms and conditions set forth in ... [the Internet TOS].” Id. The Internet TOS, which not only outlines Bollinger’s “obligations,” id., but also “AT & T’s obligations,” id. further dictates the manner in which disputes regarding Internet service are to be resolved.

Paragraph 13 of the Internet TOS governing Bollinger’s use of U-verse Internet service is entitled “Dispute Resolution with AT & T by Binding Arbitration,” id. at 74 ¶ 13 (emphasis deleted), and it admonishes customers to “read ... carefully,” id. (emphasis deleted), because their rights are “affect[ed].... ” Id. (emphasis deleted). Paragraph 13 provides in pertinent part:

Most customer concerns can be resolved quickly and to the customer’s satisfaction by calling AT & T.... In the unlikely event that AT & T’s business office is unable to resolve a complaint you may have to your satisfaction (or if AT & T has not been able to resolve a dispute it has with you after attempting to do so informally), we each agree to resolve those disputes through binding arbitration or small claims courts instead of in courts of general jurisdiction .... Any arbitration under this Agreement will take place on an individual basis; class arbitrations and class actions are not permitted. ...

Id.

Paragraph 13 further outlines the arbitration agreement by providing:

a. AT & T and you agree to arbitrate all disputes and claims between you and AT & T which are Arbitration Claims. “Arbitration Claims” as used in this Agreement means claims against AT & T based in whole or in part upon the Service(s).... This agreement to arbitrate is intended to be broadly interpreted. It includes, but is not limited to Arbitration Claims whieh[ ]
• are based in contract, tort, statute, fraud, misrepresentation or any other legal theory; [and]
• arose before this or any prior Agreement. ...

Id.

Paragraph 13 also cautions each new customer

*1209that, by entering into this Agreement, [he] ... and AT & T ... each [agree to] waiv[e] the right to a trial by jury and to participate in a class action with respect to Arbitration Claims.

Id. at 74-75 (emphasis deleted).

The Court finds there can be no dispute in this case that the Internet TOS “evidences a transaction involving commerce,” 9 U.S.C. § 2,27 and clearly contains “[a] written provision ... to settle by arbitration a controversy ... arising out of such ... transaction.” Id. Such provision shall be enforced against Bollinger unless he can successfully assert “ ‘generally applicable contract defenses,’ ”28 Rent-A-Center, 130 S.Ct. at 2776, going to the formation of the agreement to arbitrate and/or establish under section 2 that the arbitration clause should “be invalidated [because of] ... fraud, duress, or unconscionability.’ ” Id.

State law principles of contract formation govern whether a valid arbitration agreement exists, and resolution of Bollinger’s arguments29 require examination of Florida law, which recognizes the essential elements of offer, acceptance and consideration. E.g., Schoendorf v. Toyota of *1210 Orlando, 2009 WL 1075991 *6 (M.D.Fla. 2009).

Mutual promises between two parties can create a contract, and the mutual promise to arbitrate and to relinquish the right to a trial by jury can constitute the necessary consideration to support an agreement to arbitrate, as in this case, where both BellSouth and Bollinger have “each agreed to resolve [their] ... disputes through binding arbitration,” Doc. 56-1 at 74, ¶ 13, and have “each ... waiv[ed] the right to a trial by jury and to pai’ticipate in a class action with respect to Arbitration Claims.” Id. at 74-75, ¶ 13(a).

Bollinger has first argued that the agreement to arbitrate is illusory and therefore unenforceable because BellSouth has reserved the right to unilaterally modify and amend the Internet TOS and relieve itself of its promise to arbitrate. E.g., Johnson Enterprises of Jacksonville, Inc. v. FPL Group, Inc., 162 F.3d 1290, 1311 (11th Cir.1998) (an illusory promise does not constitute consideration for other promise and contract is unenforceable) (citations omitted); e.g., Office Pavilion South Florida, Inc. v. ASAL Products, Inc., 849 So.2d 367, 370 (Fla.App.2003) (quoting Restatement (Second) of Contracts § 77 (promise is not consideration if by its terms the promisor reserves a choice or alternative performances)).

The Internet TOS in effect at the time Bollinger purchased, or subscribed to, Internet service provided

From time to time, we may change this Agreement, the Site, or Service, including the rates and charges. We will provide you with thirty (30) days notice of material changes via either your Member Account e-mail address or U.S. mail. It is your responsibility to check your email address for any such notices. Your continued subscription to the Service after receipt of such notice constitutes your acceptance of such changes.

Doc. 56-1 at 64, ¶ 1.

It further provides however that

[notwithstanding any provision in this Agreement to the contrary, we agree that if AT & T makes any change to this arbitration provision (other than a change to the Notice Address) during the period of time that you are receiving Services, you may reject any such change by sending us written notice within 30 days of the change to the Arbitration Notice Address provided [in the Internet TOS].... By rejecting any such change, you are agreeing that you will arbitrate any dispute between us in accordance with the language of this provision.

Id. at 76, ¶ 13(g).

BellSouth’s discretionary right to change the Internet TOS and in particular the arbitration clause is subject to two limitations. First, customers must be provided with advance notice of any material changes, and second, customers may reject any change proposed by BellSouth to the arbitration clause itself. In the absence of any argument advanced by Bollinger that specifically addresses these limitations on BellSouth’s ability to amend the Internet TOS, the Court finds they are sufficient to prevent BellSouth’s agreement to arbitrate from being rendered illusory.

Although Florida courts have recognized that “arbitration is a favored means of dispute resolution,” Miele v. Prudential-Bache Securities, Inc., 656 So.2d 470, 473 (Fla.1995) (citation omitted), and that Florida “[p]ublic policy ... favors ar*1211bitration because it is efficient and avoids the time delay and expense associated with litigation,” Regency Group, Inc. v. McDaniels, 647 So.2d 192, 193 (Fla.App.1994) (citation omitted),30 Bollinger has contended that the “purported agreement is both substantively and procedurally unconscionable.” Doc. 71 at 2, ¶ 3.

Under Florida law, Bollinger must establish that the agreement “is both procedurally and substantively unconscionable.” Gainesville Health Care Center, Inc. v. Weston, 857 So.2d 278, 284 (FlaApp.2003) (emphasis in original). And, because Bollinger has failed to show that the arbitration clause is substantively unconscionable, that is to say, that the terms of the parties’ agreement are unreasonable or unfair, the Court has not considered Bollinger’s procedural challenges.31

Florida law requires a showing that the arbitration clause is “so ‘outrageously unfair’ as to shock the judicial conscience,” Bland v. Health Care and Retirement Corporation of America, 927 So.2d 252, 256 (Fla.App.2006) (quoting Gainesville Health Care Center, 857 So.2d at 285), before it may be deemed substantively unconscionable. As case law teaches, a substantively unconscionable contract is “one that ‘no man in his senses and not under delusion would make on the one hand, and ... no honest and fair man would accept on the other.’ ” Belcher v. Kier, 558 So.2d 1039, 1044 (Fla.App.1990) (quoting Hume v. United States, 132 U.S. 406, 415, 10 S.Ct. 134, 33 L.Ed. 393 (1889)).

Florida courts have rejected arguments that arbitration clauses are substantively unconscionable because they require arbitration to be conducted on an individual basis as in this case. E.g., Rivera v. AT & T Corp., 420 F.Supp.2d 1312, 1322 (S.D.Fla.2006). Under the instant Internet TOS, Bollinger may forego arbitration and instead pursue his Internet-related claims in small claims court. See Doc. 56-1 at 74, ¶ 13(a). The arbitration clause also contains incentives, such as cost-free arbitration,32 and the customer’s ability to recover as part of the arbitration process attorneys’ fees, e.g., id. at 75-76, ¶ 13(d); id. at 76, ¶ 13(e), and expenses. E.g., id. at 76, ¶ 13(d).

The cases on which Bollinger has relied are distinguishable. In Powertel, Inc. v. Bexley, 743 So.2d 570 (Fla.App.1999), the Florida appellate court found the arbitration clause was substantively unconscionable because by limiting actual damages, it precluded the recovery of punitive damages regardless of how outrageous the defendant’s conduct might be.

*1212Bollinger has not cited to any precise language in the Internet TOS that restricts his recovery, and it appears that the Internet TOS places no limitations on the remedies available to Bollinger and in fact, advises customers that “[arbitrators can award the same damages and relief that a court can award.” Doc. 56-1 at 74, ¶ 13.

In BellSouth Mobility LLC v. Christopher, 819 So.2d 171 (Fla.App.2002), on which Bollinger has also relied, the state appellate court found the arbitration clause was substantively unconscionable because customers were “bound to arbitration,” id. at 173, but BellSouth had “the option of pursuing court action in some instances.... ”Id.

In this case, the Internet TOS not only outlines Bollinger’s “obligations,” Doe. 56-1 at 65, but also “AT & T’s obligations,” id., and expressly provides that both Bell-South and Bollinger are obligated to arbitrate “all disputes and claims between [Bollinger] ... and AT & T which are Arbitration Claims.” Id. at 74, ¶ 13; e.g., id. (“we each agree to resolve those disputes through binding arbitration”); id. ¶ 13(a) (‘You and AT & T are each waiving the right to a trial by a jury and to participate in a class action with respect to arbitration claims”) (emphasis deleted).

Finally, the Court finds in the absence of any evidence to the contrary,33 there can be no dispute that Bollinger obligated himself, by his “registration, payment for or use of the Site and/or Service[,] ... to be bound by the ... terms and conditions set forth in ... [the Internet TOS].” Doc. 56-1 at 64; e.g., Williams v. MetroPCS Wireless, Inc., 2010 WL 62605 *7 (S.D.Fla.2010) (acceptance of contract may be manifested by performance).

Having found that an agreement to arbitrate exists between Bollinger and BellSouth, the Court must next engage in “ ‘a three-part inquiry,’ ” Cummings v. FedEx Ground Package System, Inc., 404 F.3d 1258, 1261 (10th Cir.2005) (quoting Louis Dreyfus Negoce S.A. v. Blystad Shipping & Trading, Inc., 252 F.3d 218, 224 (2d Cir.2001)), to determine whether Bollinger’s dispute regarding his Internet service falls within the scope of the arbitration clause.34 E.g., Granite Rock Co. v. International Brotherhood of Teamsters, — U.S. -, 130 S.Ct. 2847, 2856, 177 L.Ed.2d 567 (2010) (court may order arbitration of particular dispute only where court is satisfied that “parties agreed to arbitrate that dispute”) (emphasis deleted).

“First, recognizing there is some range in the breadth of arbitration clauses, ... [the] [C]ourt should classify the particular clause as either broad or narrow. Next, if reviewing a narrow clause, the [C]ourt must determine whether the dispute is over an issue that is on its face within the purview of the clause, or over a collateral issue that is somehow connected to the main agreement that contains an arbitration clause. Where the arbitration clause is narrow, a collateral matter will generally be ruled beyond its purview. Where the arbitration clause is broad, there arises a presumption of *1213arbitrability and arbitration of even a collateral matter will be ordered if the claims alleged implicates issues of contract construction or the parties’ rights and obligations under it.”

404 F.3d at 1261 (quoting Louis Dreyfus Negoce, 252 F.3d at 224) (emphasis deleted).

In accordance with extant case law, the Court finds the arbitration clause in this case is a “broad” clause,35 e.g., Prima Paint Corp. v. Flood & Conklin Manufacturing Co., 388 U.S. 395, 398, 87 S.Ct. 1801, 18 L.Ed.2d 1270 (1967) (construing clause requiring arbitration of “[a]ny controversy or claim arising out of or relating to this Agreement, or the breach thereof’ as broad), as the parties so have agreed. E.g., Doc. 56-2 at 74, ¶ 13(a) (“This agreement to arbitrate is intended to be broadly interpreted”).

The Court therefore acknowledges the presumption of arbitrability that arises from such a finding, e.g., Cummings, 404 F.3d at 1261, and holds that Bollinger should be compelled to arbitrate his Internet-related claims that “ ‘implicate! ] the parties’ rights and obligations under [the Internet TOS].” Id. (quotation omitted).

The factual allegations advanced in the complaint in support of Bollinger’s federal and state law causes of action touch on matters covered by the Internet TOS,36 and his entitlement to relief, if any, clearly relates to, and depends on, the terms of that document. Bollinger’s claims therefore qualify as “Arbitration Claims” because they are claims “based in whole or in part upon the Service(s) ...,” Doc. 56-1 at 74, ¶ 13(a), provided by BellSouth.

Accordingly, Bollinger’s Internet-related claims, regardless of whether they sound in tort or in contract or are statutorily based37 and regardless of whether they seek monetary or equitable relief, e.g., Chelsea Family Pharmacy, PLLC v. Medco Health Solutions, Inc., 567 F.3d 1191, 1198 (10th Cir.2009) (to determine if claim is arbitrable under FAA, factual underpinning of complaint evaluated rather than labels attached to causes of action), fall within the scope of the arbitration clause and must be arbitrated.

Finally, the Court has considered Bollinger’s argument that “cramming ... arbitration on a citizen in the absence of a proper contract is unconstitutional,” Doc. 71 at 6, ¶ 3,38 and his plea that

it is time for the Courts to answer the one question that has been avoided since passage of the FAA: In a conflict between the Commerce Clause and the Bill of Rights which provision of the Constitution predominates?

Id. at 23.

The United States Supreme Court has declared that the FAA “ ‘is based upon and *1214confined to the incontestable federal foundations of “control over interstate commerce and over admiralty,” ’ ” Allied-Bruce Temninix Companies, Inc. v. Dobson, 513 U.S. 265, 271, 115 S.Ct. 834, 130 L.Ed.2d 753 (1995), and it has recognized that the FAA was “enacted ... to declare “ ‘a national policy favoring arbitration’ of claims that parties contract to settle in that manner.” ” Yoden v. Discover Bank, 556 U.S. 49, 129 S.Ct. 1262, 1271, 173 L.Ed.2d 206 (2009) (quoting Preston v. Ferrer, 552 U.S. 346, 128 S.Ct. 978, 983, 169 L.Ed.2d 917 (2008) (quoting Southland Corp. v. Keating, 465 U.S. 1, 10, 104 S.Ct. 852, 79 L.Ed.2d 1 (1984))).

In light of the Supreme Court’s pronouncements that the FAA “embodies Congress’ intent to provide for the enforcement of arbitration agreements within the full reach of the Commerce Clause,” Perry v. Thomas, 482 U.S. 483, 490, 107 S.Ct. 2520, 96 L.Ed.2d 426 (1987), and that the FAA’s application is limited to only those “ ‘private agreements into which parties ha[ve] entered,’ ” id. (quotation omitted), whereby certain guaranteed rights, including the right to a trial by jury under the seventh amendment to the United States Constitution, may be waived, the Court finds that Bollinger has advanced no argument that compels this Court to find that the FAA is unconstitutional as applied to him or that an arbitral forum would be inadequate to protect those constitutional rights that he has not waived.

Accordingly, the Court39

(1)GRANTS BellSouth’s Motion to Dismiss or Alternatively to Compel Arbitration [Doc. 51] filed on October 20, 2010, to the extent that the Court DISMISSES with prejudice Bollinger’s Internet-related claims against BellSouth and COMPELS Bollinger to arbitrate his Internet-related claims “in the manner provided for in,” 9 U.S.C. § 4, and pursuant to the arbitration clause set forth in the Internet TOS;

(2) GRANTS BellSouth’s Motion to Dismiss or Transfer [Doc. 51] filed on October 20, 2010, to the extent that the Court hereby ENFORCES the mandatory forum selection clause in the TV/Voice TOS and in the exercise of its discretion, DISMISSES without prejudice under Rule 12(b)(3), supra, Bollinger’s TV/Voice-related claims against BellSouth;

(3) because Bollinger’s Internet-related claims against AT & T Ops derive from, and are closely intertwined with his contractual relationship with BellSouth, further FINDS that AT & T Ops may also enforce the Internet TOS, including its arbitration clause, and ORDERS that Bollinger’s Internet-related claims against AT & T Ops should be and are hereby DISMISSED with prejudice; and

(4) because Bollinger’s TV/Voice-related claims against AT & T Ops derive from his contractual relationship with BellSouth, further FINDS that AT & T Ops may also enforce the TV/Voice TOS and, in its discretion, DISMISSES without prejudice under Rule 12(b)(3), supra, Bollinger’s TV/ Voice-related claims against AT & T Ops.

Hancock v. American Telephone & Telegraph Co.
804 F. Supp. 2d 1196

Case Details

Name
Hancock v. American Telephone & Telegraph Co.
Decision Date
Aug 11, 2011
Citations

804 F. Supp. 2d 1196

Jurisdiction
United States

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