United States Ninth Circuit

District court's order dismissing plaintiff's putative class action and granting defendant Sirius XM's motion to compel arbitration pursuant to the Federal Arbitration Act (FAA) is reversed and remanded, where: 1) plaintiff purchased a vehicle from Toyota that included a trial subscription to defendant's satellite radio service, and subsequently, plaintiff received a "welcome kit" from defendant that contained a Customer Agreement with an arbitration clause; 2) plaintiff also received three unauthorized calls from defendant on his cellphone during the trial period; 3) a reasonable person in plaintiff's position could not be expected to understand that purchasing a vehicle from Toyota would simultaneously bind him to any contract with defendant; and 4) plaintiff's further use of defendant's service after receipt of the Customer Agreement did not manifest assent to the Customer Agreement provisions, and the arbitration clause was therefore unenforceable.

Appellate Information

• Decided 11/10/2014
• Published 11/10/2014

Judges

• Pregerson

Court

• United States Ninth Circuit

Counsel