1 Motion To Dismiss or To Compel Arbitration Case No. 2-20-Cv-03643-Dsf (Jemx) 1388634
1 Motion To Dismiss or To Compel Arbitration Case No. 2-20-Cv-03643-Dsf (Jemx) 1388634
1 Motion To Dismiss or To Compel Arbitration Case No. 2-20-Cv-03643-Dsf (Jemx) 1388634
13 WESTERN DIVISION
14 MATTHEW AJZENMAN; SUSAN Case No. 2-20-cv-03643-DSF (JEMx)
TERRY-BAZER; BENNY WONG;
15 ALEX CANELA; JEREMY NOTICE OF MOTION AND
WOOLLEY; AMANDA WOOLLEY; MOTION TO DISMISS OR, IN THE
16 ANNE BERGER; CATHEY ALTERNATIVE, TO COMPEL
MATTINGLY; BLAKE WOLLAM; ARBITRATION, ON BEHALF OF
17 and KRYSTAL MOYER, on behalf of ATHLETICS INVESTMENT
themselves, and all others who are GROUP LLC AND SAN
18 similarly situated, FRANCISCO BASEBALL
ASSOCIATES L.P.
19 Plaintiffs,
MEMORANDUM OF POINTS AND
20 v. AUTHORITIES IN SUPPORT OF
MOTION TO DISMISS OR TO
21 OFFICE OF THE COMMISSIONER COMPEL ARBITRATION
OF BASEBALL, an unincorporated
22 association doing business as MAJOR Date: October 5, 2020
LEAGUE BASEBALL; ROBERT D. Time: 1:30 p.m.
23 MANFRED, JR.; AZPB LIMITED Ctrm: 7D
PARTNERSHIP; AZPB I, INC; Judge: Hon. Dale S. Fischer
24 ATLANTA NATIONAL LEAGUE
BASEBALL CLUB INC.; ATLANTA
25 NATIONAL LEAGUE BASEBALL Date Filed: April 20, 2020
CLUB, LLC; BALTIMORE ORIOLES
26 LIMITED PARTNERSHIP; Trial Date: None set
BALTIMORE ORIOLES INC.;
27 BALTIMORE BASEBALL CLUB
INC.; BOSTON RED SOX
28 BASEBALL CLUB LIMITED
PARTNERSHIP; FENWAY SPORTS
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1 TABLE OF CONTENTS
2 Page
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I. BACKGROUND ........................................................................................... 14
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A. COVID-19 and the 2020 Baseball Season.......................................... 14
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B. The Athletics ....................................................................................... 16
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C. The Giants ........................................................................................... 17
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II. ARGUMENT ................................................................................................ 19
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A. The Court Lacks Subject-Matter Jurisdiction. .................................... 19
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B. The Claims Are Subject to Mandatory Arbitration ............................ 22
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1. Wong’s Claims Against the A’s Are Governed by the A’s
Arbitration Agreement. ............................................................. 23
12 2. Wong’s Claims Against the Giants Are Governed by the
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SFGiants.com Terms, Which Delegate Questions of
Arbitrability to the Arbitrator. .................................................. 25
14 3. The Court Should Order Arbitration of All Claims
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Against the A’s and Giants and Dismiss this Action. .............. 31
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C. The Claims Must Be Dismissed for Failure to State a Claim. ............ 32
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1. Count 1 Fails to State a Claim under the CLRA. ..................... 32
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2. Counts 2 and 3 Fail to State a Claim Under the UCL. ............. 35
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3. Counts 4 and 5 Fail to State Claims for Common-Law
Civil Conspiracy and Unjust Enrichment. ................................ 37
20 III. CONCLUSION ............................................................................................. 37
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1 TABLE OF AUTHORITIES
2 Page(s)
3 Cases
4
Anderson v. SeaWorld Parks & Entm’t, Inc.,
5 No. 15-CV-02172-JSW, 2016 WL 8929295 (N.D. Cal. Nov. 7,
2016) ............................................................................................................. 33, 34
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28
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In re Facebook Biometric Info. Privacy Litig.,
185 F. Supp. 3d 1155 (N.D. Cal. 2016) ............................................................. 27
19
Fairbanks v. Super. Ct.,
20 46 Cal. 4th 56 (2009) .................................................................................... 33, 34
21
First Options of Chi., Inc. v. Kaplan,
22 514 U.S. 938 (1995) ......................................................................... 13, 26, 32, 35
23 Gountoumas v. Giaran, Inc.,
24 No. CV 18-7720-JFW(PJWx), 2018 WL 6930761 (C.D. Cal. Nov.
21, 2018) ............................................................................................................. 30
25
10 In re Holl,
925 F.3d 1076 (9th Cir. 2019) ............................................................................ 28
11
Iezza v. Saxon Mortg. Servs., Inc.,
12
No. 10-03634 DDP, 2010 WL 3834041 (C.D. Cal. Sept. 28, 2010) ................. 37
13
Jamison v. Bank of Am., N.A.,
14 194 F. Supp. 3d 1022 (E.D. Cal. 2016) .............................................................. 33
15
Jogani v. Super. Ct.,
16 165 Cal. App. 4th 901 (2008) ............................................................................. 37
17 Johnmohammadi v. Bloomingdale’s, Inc.,
18 755 F.3d 1072 (9th Cir. 2014) ............................................................................ 32
19 Johnson v. Ocwen Loan Servicing, LLC,
20
No. EDCV 17-01373-JGB (SPx), 2017 WL 10581088 (C.D. Cal.
Dec. 11, 2017) .................................................................................................... 36
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Johnson v. Select Portfolio Servicing, Inc.,
22 No. CV 15-9231-JFW, 2016 WL 837895 (C.D. Cal. Mar. 3, 2016) ................. 36
23
Kaar v. Wells Fargo Bank, N.A.,
24 No. 16-01290 WHA, 2016 WL 3068396 (N.D. Cal. June 1, 2016) .................. 36
25
Kearney v. Hyundai Motor Am.,
26 No. SACV09-1298-JST, 2010 WL 8251077 (C.D. Cal. Dec. 17,
2010) ................................................................................................................... 34
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3 Lauter v. Anoufrieva,
642 F. Supp. 2d 1060 (C.D. Cal. 2009) .............................................................. 37
4
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Pirozzi v. Apple, Inc.,
966 F. Supp. 2d 909 (N.D. Cal. 2013) ............................................................... 34
18
Poublon v. C.H. Robinson Co.,
19 846 F.3d 1251 (9th Cir. 2017) ............................................................................ 24
20
Rudolph v. California Two Bunch Return, LLC,
21 No. CV 16-00886 AB, 2017 WL 7101147 (C.D. Cal. May 19,
22
2017) ................................................................................................................... 20
21
Cal. Bus. & Prof. Code § 17200 ........................................................................ 35, 36
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1 forum. Although the Court should analyze each club’s arbitration agreement
2 independently, they share a common outcome: this Court is not an appropriate
3 forum for any claim alleged against the A’s or Giants.
4 Third, even if any claims against the moving Defendants remain in this
5 forum, they should be dismissed for failure to state a claim. The Consumer Legal
6 Remedies Act does not apply to sports tickets, which are neither goods nor services
7 subject to the statute. The CLRA claims alleged in the Amended Complaint also
8 lack sufficient particularity and any allegations regarding reliance. The Unfair
9 Competition Law claims, which are entirely derivative of the CLRA claims, fare no
10 better. Finally, the civil conspiracy and unjust enrichment claims do not even assert
11 valid causes of action under California law.
12 Ultimately, while the claims against the moving Defendants should be
13 dismissed both due to binding arbitration agreements and failure to state a claim
14 under applicable law, the Court need not even reach those arguments. Wong’s
15 claims fail for the simple and fundamental reason that he has already received the
16 refunds he seeks here.
17 I. BACKGROUND 2
18 A. COVID-19 and the 2020 Baseball Season
19 In the early days of the COVID-19 Pandemic, MLB clubs—like countless
20 other businesses—planned for an uncertain future. On March 12, MLB announced
21 that “in the interests of the safety and well-being of our players, Clubs, and our
22 millions of loyal fans,” the start of the season would be delayed by at least two
23 weeks. Corr. Am. Class Action Compl., ECF No. 42-1, (“FAC”) ¶ 75. The
24 announcement emphasized that the decision was interim in nature and subject to
25 change. Id. It went on to state that MLB and clubs were “preparing a variety of
26
2
This section provides allegations and facts that are relevant to this motion. For a
27 more thorough background please refer to Section II of the Memorandum of Points
and Authorities in Support of Motion to Dismiss Claims Against Office of the
28 Commissioner et al.
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1 4) and Unjust Enrichment (Count 5). Plaintiffs style the FAC as seeking only
2 equitable relief; however, the gravamen of the complaint is a request for refunds.
3 See FAC ¶¶ 117, 125, 129, 134, 137, § VIII. All of the claims against the moving
4 Defendants arise out of the alleged failure of the A’s and Giants to provide Wong
5 with refunds for his purchase of 2020 tickets.
6 B. The Athletics
7 On August 9, 2018, Wong electronically signed a “Season Ticket
8 Membership Agreement” to purchase three 2019 Athletics ticket packages, which
9 provided that “THIS AGREEMENT WILL AUTOMATICALLY RENEW
10 EACH SEASON UNTIL YOU CANCEL IT.” Decl. of Mark Bashuk of the
11 Oakland Athletics in Support of Motion to Dismiss or in the Alternative Compel
12 Arbitration (“Athletics Decl.”) ¶ 3; id. Ex. A at 1, 5. On October 15, 2019, Wong
13 purchased the three 2020 A’s ticket packages at issue here pursuant to the automatic
14 renewal term in that contract. Id. ¶ 7; id. Ex. B; FAC ¶¶ 14–15. On July 1, 2020,
15 pursuant to the Athletics’ policy for Impacted Games, the A’s issued Wong a full
16 refund for his 2020 ticket packages. Athletics Decl. ¶¶ 8–9; id. Ex. C; id. Ex. D.
17 Wong’s Season Ticket Membership Agreement with the A’s contains a
18 binding, bilateral arbitration clause in a section entitled “Arbitration Agreement”
19 (hereinafter, the “A’s Arbitration Agreement”). Id. Ex. A. Wong was able to
20 review that Agreement in full, under no time constraints, before he electronically
21 signed it. Id. ¶ 4. The A’s Arbitration Agreement states that either “you or we may
22 individually elect to arbitrate any and all claims and disputes relating in any way to
23 this Agreement or to the parties’ dealings with one another,” with an exception for
24 “claims concerning the validity, scope or enforceability of this Arbitration
25 Agreement, through BINDING INDIVIDUAL ARBITRATION.” Id. Ex. A § 13.
26 The A’s Arbitration Agreement provides in bolded, capitalized type that
27 “YOU HAVE THE RIGHT TO REJECT THIS ARBITRATION
28 AGREEMENT, BUT YOU MUST EXERCISE THIS RIGHT PROMPTLY
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1 AS SET FORTH HEREIN.” Id. The opt-out provision states that if Wong did
2 “not wish to be bound by this agreement to arbitrate” he could opt out within 45
3 days by calling the number listed in the Agreement or sending an email to a
4 specified address. Id. While some A’s fans have chosen to use that procedure to
5 opt out of the Arbitration Agreement, Wong did not opt out. Id. ¶ 6.
6 The Agreement repeatedly notifies Wong of the presence of the Arbitration
7 Agreement, including the opt-out option. Near the top of the first page, the
8 Agreement states in bolded, capitalized type that “THIS AGREEMENT
9 INCLUDES AN ARBITRATION AGREEMENT WITH A CLASS ACTION
10 WAIVER. YOU HAVE A RIGHT TO REJECT THE ARBITRATION
11 AGREEMENT AS DESCRIBED BELOW. PLEASE READ IT
12 CAREFULLY.” Athletics Decl. Ex. A at 1. It notes again on the signature page in
13 text offset from the main body that, “By signing below, you agree to the terms of
14 this Agreement, including the Arbitration Agreement . . . .” Id. Ex. A at 5. Wong
15 entered his electronic signature immediately below that statement. Id.
16 The Agreement provides that it “shall be governed by the Federal Arbitration
17 Act, 9 U.S.C. §§ 1–16 (‘FAA’)” and shall be “administered by the [AAA] or JAMS
18 pursuant to the applicable arbiter’s applicable rules.” Id. Ex. A § 13. It also
19 contains a bilateral class-action waiver, stating that “ALL DISPUTES SHALL BE
20 ARBITRATED ON AN INDIVIDUAL BASIS, AND NOT AS A CLASS
21 ACTION, REPRESENTATIVE ACTION, CLASS ARBITRATION OR ANY
22 SIMILAR PROCEEDING.” Id.
23 C. The Giants
24 On February 8, 2020, Wong purchased four tickets to see a September 24
25 Giants game through the Giants’ website, SFGiants.com.3 Declaration of Ashley
26
3
The Amended Complaint alleges that Wong purchased three tickets for the 2020
27 season; however, the Giants’ ticketing system records reflect that he purchased four
tickets. FAC ¶ 14; Giants Decl. ¶ 3. Whether the pleading was in error or Wong
28 seeks a refund for only three of the four tickets is not material to this motion.
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1 Corp., No. 17-CV-3981 PSG, 2017 WL 10527368, at *4 (C.D. Cal. Dec. 6, 2017).
2 Moreover, when plaintiffs have actually received the relief that would make them
3 whole, a request for an injunction “in the abstract . . . apart from any concrete
4 application that threatens imminent harm to [their] interests,” does not keep their
5 claims alive. See Summers v. Earth Island Inst., 555 U.S. 488, 494 (2009); see also
6 Ballin, 2017 WL 10527368, at *4.
7 Wong’s central claim in this lawsuit is that he has been denied refunds for his
8 purchase of 2020 MLB tickets. See e.g. FAC ¶ 1 (defining lawsuit as a class action
9 against MLB clubs “that refuse to refund money to MLB’s fans who purchased
10 tickets for the 2020 MLB season”); see generally FAC (reciting variations of the
11 word “refund” 107 times). Pursuant to the moving Defendants’ policies for
12 Impacted Games, Wong has now received full refunds. Athletics Decl. ¶¶ 8–9;
13 Giants Decl. ¶ 23.5 That Wong styles what is essentially a request for refunds as
14 also seeking declaratory and injunctive relief does not alter the conclusion that,
15 having received the relief he sought, he no longer has a live case or controversy for
16 this Court to adjudicate. See Summers, 555 U.S. at 494; Ballin, 2017 WL
17 10527368, at *4. His claims for refunds are thus moot.
18 In meet-and-confer discussions with Wong’s counsel, Defendants repeatedly
19 raised the mootness of Wong’s and the other Plaintiffs’ claims and asked for their
20 voluntary dismissal. See Motion to Dismiss on Behalf of the Office of the
21 Commissioner et al. (“Comm’r MTD”) at 28. Two Plaintiffs agreed to voluntarily
22 dismiss their claims on the eve of this filing. See ECF No. 75; ECF No. 76.
23 Although Wong’s moot claims are materially indistinguishable from the voluntarily
24 dismissed ones—those Plaintiffs, like Wong, received refunds or requested credits
25 pursuant to clubs’ Impacted Games policies—Wong has refused to dismiss them,
26
5
“Unlike a Rule 12(b)(6) motion, a Rule 12(b)(1) motion can attack the substance
27 of a complaint’s jurisdictional allegations despite their formal sufficiency, and in so
doing rely on affidavits or any other evidence properly before the court.” St. Clair
28 v. City of Chico, 880 F.2d 199, 201 (9th Cir. 1989).
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1 entered into by way of an executed ticket package agreement, requires this Court to
2 decide gateway arbitrability issues in favor of arbitration. Wong’s agreement with
3 the Giants, entered into as part of the Giants’ online ticket purchasing process,
4 requires the Court to delegate those arbitrability issues to the arbitrator. Although
5 the Court applies different analyses to those separate agreements, both agreements
6 mandate the same fate for the claims: referral to arbitration.
7 1. Wong’s Claims Against the A’s Are Governed by the A’s
Arbitration Agreement.
8
9 The A’s Arbitration Agreement applies broadly to “any and all claims and
10 disputes relating in any way to this Agreement or to the parties’ dealings with one
11 another.” Athletics Decl., Ex. A § 13 (emphasis added). However, it expressly
12 excludes from its scope “Claims concerning the validity, scope or enforceability of
13 this Arbitration Agreement.” Id. Thus, this Court must decide the gateway issues
14 of arbitrability: “(1) whether there is an agreement to arbitrate between the parties;
15 and (2) whether the agreement covers the dispute.” Brennan, 796 F.3d at 1130.
16 a. Wong Agreed to the A’s Arbitration Agreement,
Which is Valid and Enforceable.
17
18 Courts apply state law to determine whether the parties entered into an
19 enforceable agreement to arbitrate, Circuit City Stores, Inc. v. Adams, 279 F.3d 889,
20 892 (9th Cir. 2002), giving “due regard to the federal policy favoring arbitration.”
21 Pinnacle Museum Tower Ass’n v. Pinnacle Mkt. Dev. (US), LLC, 55 Cal. 4th 223,
22 236 (2012). Under the FAA, arbitration agreements are presumed valid and
23 enforceable. Shearson/Am. Express, Inc. v. McMahon, 482 U.S. 220, 227 (1987).
24 Thus, “the party resisting arbitration bears the burden of proving that the claims at
25 issue are unsuitable for arbitration.” Green Tree Fin. Corp.-Ala. v. Randolph, 531
26 U.S. 79, 91 (2000).
27 Wong’s acceptance of the A’s Arbitration Agreement is straightforward.
28 When Wong electronically signed the A’s Season Ticket Membership Agreement,
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1 he expressly consented “to the terms of th[e] Agreement, including the Arbitration
2 Agreement . . . .” Athletics Decl., Ex. A at 5. Wong may escape enforcement of
3 the Agreement only by demonstrating that it is unconscionable, which requires him
4 to prove that it is both procedurally and substantively unconscionable. See AT&T
5 Mobility LLC v. Concepcion, 563 U.S. 333, 340 (2011). He can do neither.
6 “The procedural element of unconscionability focuses on ‘oppression or
7 surprise due to unequal bargaining power.’” Poublon v. C.H. Robinson Co., 846
8 F.3d 1251, 1260 (9th Cir. 2017) (quoting Pinnacle, 55 Cal. 4th at 246). There is no
9 oppression or surprise here. Wong had a full copy of the Athletics’ Agreement in
10 front of him, which he was free to review at his leisure, before he electronically
11 signed it. See Perry v. MLB Advanced Media, L.P., No. CV 18-1548 PSG (GJSx),
12 2018 WL 5861307, at *5 (C.D. Cal. May 30, 2018) (finding no procedural
13 unconscionability where party was not subjected to “deceptive or high pressure
14 tactics”). The terms of the A’s Arbitration Agreement are stated clearly, in bolded
15 type, in a section set off separately from the rest of the text. See Kilgore v.
16 KeyBank, Nat. Ass’n, 718 F.3d 1052, 1059 (9th Cir. 2013) (finding no procedural
17 unconscionability where arbitration provision was not “buried in fine print . . . but
18 was instead in its own section, clearly labeled, in boldface”).
19 If Wong did not “wish to be bound” by the A’s Arbitration Agreement, he
20 could have opted out by simply contacting the Athletics at the number or e-mail
21 address provided, within 45 days of signing the Season Ticket Membership
22 Agreement. Athletics Decl. Ex. A § 13. Wong chose not to take advantage of that
23 straightforward procedure. Id. ¶ 6. Where, as here, an agreement to arbitrate creates
24 “a meaningful right to opt-out,” it is “procedurally conscionable as a matter of law.”
25 Mohamed v. Uber Techs., Inc., 848 F.3d 1201, 1206, 1210 (9th Cir. 2016) (finding
26 that a 30-day opt-out period created a meaningful right to opt out); see also Kilgore,
27 718 F.3d at 1059 (finding that arbitration provisions providing 30- and 60-day opt-
28 out periods were procedurally conscionable).
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1 Arbitration Provision delegates to the arbitrator the power to decide the question of
2 arbitrability. Thus, as to Wong’s claims against the Giants, this Court’s role is
3 limited to determining whether the agreement to delegate the question of
4 arbitrability was valid.
5 a. Wong Agreed to the SFGiants.com Terms by Clicking
“CONFIRM” to Purchase Tickets.
6
1 by agreeing to the Fevo Terms, he was also agreeing to “be subject to the terms
2 applicable to [SFGiants.com].” Id.
3 Wong could have easily accessed the “terms applicable” to SFGiants.com
4 from the Fevo confirmation window either by clicking a visually-distinctive blue,
5 underlined hyperlink to “sfgiants.com,” which linked directly to the SFGiants.com
6 homepage, or simply clicking the “X” in the top right corner of the Fevo
7 confirmation window, which would restore the SFGiants.com/specialevents page.
8 Id. ¶ 16. At the bottom of every single page of the Giants’ website is a hyperlink to
9 the applicable “Terms of Use,” through which users can access the SFGiants.com
10 Terms. Id. ¶ 17.
11 The SFGiants.com Terms are no less enforceable merely because they were
12 incorporated by reference into the Fevo Terms. It is black-letter law that “[w]here
13 it is clear that a party is assenting to a contract that incorporates other documents by
14 reference, the incorporation is valid—and the terms of the incorporated document
15 are binding.” In re Holl, 925 F.3d 1076, 1084 (9th Cir. 2019); see also Boys Club
16 of San Fernando Valley, Inc. v. Fid. & Deposit Co., 6 Cal. App. 4th 1266, 1271
17 (1992) (“An agreement need not expressly provide for arbitration, but may do so in
18 a secondary document which is incorporated by reference.”). Where, as here, a
19 party’s “assent to” online terms that incorporated an arbitration provision is
20 “unambiguous,” the party has sufficient inquiry notice of the provision to render it
21 enforceable, “regardless of whether he actually read the terms.” Holl v. United
22 Parcel Serv., Inc., No. 16-cv-05856-HSG, 2017 WL 11520143, at *5 (N.D. Cal.
23 Sept. 18, 2017) (enforcing terms—including an arbitration provision—that were
24 incorporated by reference into online terms of service of a different website)
25 affirmed by In re Holl, 925 F.3d at 1083 (finding no reversible error where court
26 enforced terms that “require[d] several steps and a fair amount of web-browsing
27 intuition” to locate). Wong is thus bound by the SFGiants.com Terms.
28
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1 GW(SSx), 2018 WL 6163128, at *4 (C.D. Cal. Oct. 24, 2018). 7 This Court has
2 also applied the majority approach without discussion, holding, in a case brought by
3 an Olive Garden server against the restaurant chain, that incorporation of the AAA
4 rules in an agreement to arbitrate constituted “clear and unmistakable evidence of
5 an agreement to arbitrate arbitrability.” Liggins, 2018 WL 7018011, at *2.
6 Here, the SFGiants.com Arbitration Provision states that the arbitration shall
7 be conducted by the AAA “in accordance with its then governing rules and
8 procedures, including the Supplementary Procedures for Consumer-Related
9 Disputes, where applicable” (the “Delegation Provision”). Giants Decl. Ex. C
10 § 11(1). The Supplementary Procedures for Consumer-Related Disputes “have
11 been amended and renamed the Consumer Arbitration Rules.” AAA Consumer
12 Arbitration Rules R-1(A). The current Consumer Arbitration Rules provide that
13 where an agreement “specifie[s] that the Supplementary Procedures for Consumer-
14 Related Disputes shall apply” the parties to the agreement “shall have made these
15 Consumer Arbitration Rules . . . a part of their arbitration agreement whenever they
16 have provided for arbitration by the [AAA].” Id.; see also Marriott Ownership
17 Resorts, Inc. v. Flynn, No. 14-00372 JMS-RLP, 2014 WL 7076827, at *14 (D.
18 Haw. Dec. 11, 2014) (collecting cases holding that agreements providing that the
19 current version of the AAA’s rules—rather than the version in effect at the time of
20 contracting—are enforceable). Under Rule 14 of the AAA Consumer Rules, “[t]he
21 arbitrator shall have the power to rule on his or her own jurisdiction, including any
22
7
See also Gountoumas v. Giaran, Inc., No. CV 18-7720-JFW(PJWx), 2018 WL
23 6930761, at *6 (C.D. Cal. Nov. 21, 2018) (stating that the “greater weight of
authority” in California “has concluded that the holding of Brennan applies
24 similarly to non-sophisticated parties”) (internal alteration omitted); Miller v. Time
Warner Cable Inc., No. 8:16-cv-00329-CAS (ASx), 2016 WL 7471302, at *5 (C.D.
25 Cal. Dec. 27, 2016) (stating that the “greater weight of authority” applies Brennan
to consumer contracts); Cordas, 228 F. Supp. 3d at 992 (stating that “the clear
26 weight of authority supports the conclusion” that Brennan applies to a consumer
contract); Zenelaj v. Handybook Inc., 82 F. Supp. 3d 968, 973 (N.D. Cal. 2015)
27 (stating that following Brennan, “nearly every . . . decision in the Northern District
of California, . . . has consistently found effective delegation of arbitrability
28 regardless of the sophistication of the parties” by incorporating AAA rules).
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10 Where the parties entered into a binding arbitration agreement, the FAA
11 requires that the court “shall make an order directing the parties to proceed to
12 arbitration in accordance with the terms of the agreement.” 9 U.S.C. § 4. This
13 includes in accordance with “terms providing for individualized proceedings.” Epic
14 Sys. Corp. v. Lewis, 138 S. Ct. 1612, 1619 (2018). The FAA “leaves no place for
15 the exercise of discretion.” Chiron Corp. v. Ortho Diagnostic Sys., Inc., 207 F.3d
16 1126, 1131 (9th Cir. 2000).
17 With respect to Wong’s claims against the A’s, the A’s Arbitration
18 Agreement requires that all claims brought by Wong or the Athletics “SHALL BE
19 ARBITRATED ON AN INDIVIDUAL BASIS, AND NOT AS A CLASS
20 ACTION, REPRESENTATIVE ACTION, CLASS ARBITRATION OR ANY
21
8
22 In the alternative, this Court can decide for itself that those claims are arbitrable.
Recently, in Perry v. MLB Advanced Media, L.P., a court in this district reviewed
23 the MLB.com Terms that are almost identical to the SFGiants.com Terms at issue
here. Compare 2018 WL 5861307, at *3 (quoting arbitration provision at issue in
24 the MLB Terms) with Giants Decl. Ex. C at 8 (providing identical language). The
Perry court found that the provision was “valid and enforceable” and compelled
25 arbitration. Perry, 2018 WL 5861307 at *7. In addition, the SFGiants.com
Arbitration Provision applies broadly to “any and all disputes, claims or
26 controversies, arising out of or relating to this Agreement, the breach thereof, or
any use of the MLB Digital Properties.” Giants Decl. Ex. C at 8 (emphasis added).
27 Wong’s claims against the Giants arise out of and relate to his use of an MLB
Digital Property, the SFGiants.com website, to purchase tickets. Wong’s claims
28 thus fall squarely within the SFGiants.com Arbitration Provision’s sweeping scope.
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25
9
If the Court decides for itself the question of arbitrability under the SFGiants.com
26 Arbitration Provision, that Provision also contains a valid class-action waiver that
must be enforced. Specifically, it states that claims must be brought “on an
27 individual basis only, and shall not be consolidated or joined with or in any
arbitration or other proceeding involving a Claim of any other party.” Giants Decl.
28 Ex. C at 8.
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1 SeaWorld Parks & Entm’t, Inc., No. 15-CV-02172-JSW, 2016 WL 8929295, at *10
2 (N.D. Cal. Nov. 7, 2016) (sale of admission to SeaWorld).11 To conclude otherwise
3 “would defeat the apparent legislative intent in limiting the definition of ‘goods’ to
4 include only ‘tangible chattels.’” Fairbanks, 46 Cal. 4th at 65.
5 Thus, because the license to attend an MLB game is not a good or service
6 covered by the CLRA, Plaintiffs’ First Claim for Relief should be dismissed.
7 b. Plaintiffs’ CLRA Claims Lack Particularity.
8 Even if the CLRA applied to the purchase of tickets to baseball games,
9 Plaintiffs’ CLRA claims would still fail. CLRA claims “grounded in fraud” such as
10 those alleged here involving purported misrepresentations “must satisfy the
11 particularity requirement of Rule 9(b).” Kearns v. Ford Motor Co., 567 F.3d 1120,
12 1125 (9th Cir. 2009). Courts have applied this standard to alleged violations of the
13 statutory provisions cited by Plaintiffs. See, e.g., Pirozzi v. Apple, Inc., 966 F.
14 Supp. 2d 909, 923 (N.D. Cal. 2013); Kearney v. Hyundai Motor Am., No. SACV09-
15 1298-JST (MLGx), 2010 WL 8251077, at *5 (C.D. Cal. Dec. 17, 2010). To satisfy
16 Rule 9(b), plaintiffs must “identify the who, what, when, where and how of the
17 misconduct charged, as well as what is false or misleading about [the challenged
18 conduct], and why it is false.” Eisen v. Porsche Cars N. Am., Inc., No. CV 11-9405
19 CAS (FEMx), 2012 WL 841019, at *3 (C.D. Cal. Feb. 22, 2012).
20 Plaintiffs’ allegations fall far short of what Rule 9(b) requires. Plaintiffs do
21 not say which statements contained the allegedly false representations that the
22 moving Defendants’ “goods have characteristics which they do not have” or that
23 the moving Defendants’ ticket sales “involve[d] rights, remedies, and/or obligations
24 which they did not have.” FAC ¶ 114. Nor do Plaintiffs allege who made such
25
11
26 The Anderson court found that the CLRA applied to admission to SeaWorld
because of the additional services provided upon admission. 2016 WL 8929295, at
27 *12. Plaintiffs have not made and could not make any such allegation here. See
Hall v. Sea World Entm’t, Inc., No. 3:15-CV-660-CAB-RBB, 2015 WL 9659911,
28 at *15 (S.D. Cal. Dec. 23, 2015).
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1 statements, when and where they were made, or how they were misleading.
2 Without more, Plaintiffs cannot overcome Rule 9(b)’s exacting standard.
3 c. Plaintiffs Fail to Allege Reliance.
4 To have standing to bring a CLRA claim premised on a misrepresentation or
5 nondisclosure, a plaintiff must also allege that he or she—and all putative class
6 members—actually relied on the misrepresentation or nondisclosure. Durell v.
7 Sharp Healthcare, 183 Cal. App. 4th 1350, 1367 (2010). Here, Plaintiffs have not
8 alleged that they relied on any purported misrepresentations. See generally FAC ¶¶
9 110–117. In fact, Wong agreed to contracts in connection with his purchases that
10 specifically disclaimed liability for any failure to provide an immediate refund for
11 cancelled or postponed games. See Athletics Decl. Ex. A § 5; Giants Decl. Ex. C §
12 8. 12 Wong does not allege that, but for any statements by the A’s or Giants, he
13 would not have purchased tickets or would have otherwise acted differently. The
14 CLRA claim must therefore be dismissed.
15 2. Counts 2 and 3 Fail to State a Claim Under the UCL.
16 Plaintiffs allege both “unlawful” and “unfair” business acts under Cal. Bus.
17 & Prof. Code § 17200, but both claims are deficient. See FAC ¶¶ 119, 127.
18 First, Plaintiffs allege that Defendants’ actions are “unlawful” because they
19 violate the CLRA. FAC ¶ 127. That claim is entirely derivative of Plaintiffs’
20 CLRA claim and therefore fails for the same reasons. Murillo v. Homebridge Fin.
21 Servs., Inc., No. CV 19-1328 PA (JEMx), 2019 WL 4284515, at *3 (C.D. Cal. July
22 8, 2019) (“When a statutory claim fails, a derivative UCL claim also fails.”).
23 Second, Plaintiffs’ claim under the unfair prong must be dismissed because
24 the supposedly unfair business practice they allege—refusing to implement blanket
25 12
To “[p]revent[] plaintiffs from surviving a Rule 12(b)(6) motion by deliberately
26 omitting references to documents upon which their claims are based . . . a district
court ruling on a motion to dismiss may consider a document the authenticity of
27 which is not contested, and upon which the plaintiff’s complaint necessarily relies.”
Parrino v. FHP, Inc., 146 F.3d 699, 706 (9th Cir. 1998) (superseded by statute on
28 other grounds).
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1 refund policies immediately for all 2020 MLB games, see FAC ¶¶ 123-24—
2 “overlap[s] entirely” with the business practice alleged under the unlawful prong of
3 § 17200. See, e.g., Johnson v. Ocwen Loan Servicing, LLC, No. EDCV 17-01373-
4 JGB (SPx), 2017 WL 10581088, at *8 (C.D. Cal. Dec. 11, 2017), aff’d, 744 Fed.
5 App’x 418 (9th Cir. 2018). “Because Plaintiff’s unlawful prong claim cannot
6 survive, Plaintiff’s unfair prong also must fail.” West v. Palo Alto Hous. Corp., No.
7 17-CV-00238-LHK, 2019 WL 2549218, at *26 (N.D. Cal. June 20, 2019).
8 Plaintiffs also have not adequately alleged that the moving Defendants’
9 “conduct is tethered to an[] underlying constitutional, statutory or regulatory
10 provision, or that it threatens an incipient violation of an antitrust law, or violates
11 the policy or spirit of an antitrust law.” Graham v. Bank of Am., N.A., 226 Cal.
12 App. 4th 594, 613 (2014). That is, “Plaintiffs have not pointed to any specific
13 constitutional, statutory, or regulatory provision that embodies a policy that [the
14 moving Defendants’ actions] violate.” Boris v. Wal-Mart Stores, 35 F. Supp. 3d
15 1163, 1171 (C.D. Cal. 2014), aff’d, 649 Fed. App’x 424 (2016) (emphasis added);
16 see also Mancha Dev. Co., LLC v. Houston Cas. Co., No. SACV 19-831 JVS
17 (KESx), 2019 WL 6703541, at *11 (C.D. Cal. July 9, 2019); Kaar v. Wells Fargo
18 Bank, N.A., No. 16-01290 WHA, 2016 WL 3068396, at *3 (N.D. Cal. June 1,
19 2016). Without that, Plaintiffs’ unfairness UCL claim fails.
20 Finally, Plaintiffs’ claim should be dismissed because “[t]he unfairness
21 prong of the UCL does not give the courts a general license to review the fairness
22 of contracts.” Johnson v. Select Portfolio Servicing, Inc., No. CV 15-9231-JFW
23 (ASx), 2016 WL 837895, at *4 (C.D. Cal. Mar. 3, 2016). Tellingly, the Amended
24 Complaint does not allege that the moving Defendants violated the agreements
25 Wong entered into when purchasing his tickets. See FAC ¶¶ 9–31. Because Wong
26 has not alleged that the refunds he seeks are compelled by those contracts, the UCL
27 claim is simply an impermissible attempt to re-write the agreements he willingly
28 entered. The UCL cannot be used for that purpose. Spiegler v. Home Depot
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1 U.S.A., Inc., 552 F. Supp. 2d 1036, 1046 (C.D. Cal. 2008) (“[T]hat is not the deal
2 that plaintiffs struck, and the UCL cannot be used to rewrite their contracts or to
3 determine whether the terms of their contracts are fair.”), aff’d, 349 Fed. App’x 174
4 (9th Cir. 2009).
5 3. Counts 4 and 5 Fail to State Claims for Common-Law Civil
Conspiracy and Unjust Enrichment.
6
7 Plaintiffs’ final two claims fail because neither is recognized under California
8 law. “[C]ivil conspiracy is not itself a separate cause of action.” Lauter v.
9 Anoufrieva, 642 F. Supp. 2d 1060, 1097 (C.D. Cal. 2009); accord Vazquez v. Wells
10 Fargo Bank N.A., No. CV 15-9821 DSF (JCX), 2017 WL 4679726, at *3 (C.D.
11 Cal. June 5, 2017) (Fischer, J.). Even if it were, “mere conclusory allegations”—
12 like those here, see FAC ¶¶ 130–34—“that a conspiracy existed are insufficient.”
13 Novak v. Merced Police Dep’t, No. 1:13-CV-1402 AWI BAM, 2014 WL 730725,
14 at *5 (E.D. Cal. Feb. 24, 2014).
15 Likewise, unjust enrichment “is a general principle underlying various
16 doctrines and remedies, including quasi-contract,” but is “not a cause of action,”
17 Jogani v. Super. Ct., 165 Cal. App. 4th 901, 911 (2008), and “a claim for unjust
18 enrichment cannot stand alone as an independent claim for relief.” Iezza v. Saxon
19 Mortg. Servs., Inc., No. 10-03634 DDP (JCGx), 2010 WL 3834041, at *2 (C.D.
20 Cal. Sept. 28, 2010). Those claims, like the others, must be dismissed.
21 III. CONCLUSION
22 For the reasons stated above, the Court should take the following actions
23 with respect to Counts 1–5 against the Defendants Athletics Investment Group LLC
24 and San Francisco Baseball Associates L.P.:
25 (1) dismiss the claims for lack of subject-matter jurisdiction; or,
26 (2) issue an order compelling arbitration and dismiss or stay the claims; or,
27 (3) dismiss the claims for failure to state a claim.
28 ////
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