In Bobbie James v. Global TelLink Corp, No. 16-1555 (Mar. 29, 2017), the Third Circuit held that the defendant telecom company had failed to create a binding arbitration agreement (click here for a copy of the decision). As recognized by the Third Circuit, this case involves a unique fact pattern of “contract formation through an interactive voice-response telephone system.”
The defendant provides telecom services to inmates at correctional facilities so that the inmates can call their friends, family, and attorneys. Users can deposit funds through an automated telephone service, with an interactive voice-response system. When a user creates an account through a telephone, the user receives an audio notice stating that the account is governed by the terms of use on the defendant’s website.
