Louisiana Rejects Arbitration Clause In Contract Of Adhesion
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The Supreme Court of Louisiana refuses to send customers who were injured while playing at Sky Zone to arbitration, finding that the arbitration clause “is adhesionary and therefore unenforceable”. Duhon v. Activelaf, LLC, __ So. 3d __, 2016 WL 6123820 (La. Oct. 19 2016); Alicea v. Activelaf, LLC, __ So. 3d __, 2016 6123859 (La. Oct. 19, 2016). [My alternate title for this post is “I TOLD YOU SO, SKY ZONE.” Every time I bring my children to the trampoline park for a birthday party, I tell those poor teenagers who are enforcing the rules that those contracts are likely not enforceable. But, I cared more about the waiver of liability than the arbitration bit.]
The arbitration clause at issue, which is required to participate in activities, was clicked electronically. It states “If there are any disputes regarding this agreement, I on behalf of myself and/or my child(ren) hereby waive any right I and/or my child(ren) may have to a trial and agree that such dispute shall be brought within one year of the date of this Agreement and will be determined by binding arbitration before one arbitrator to be administrated by JAMS…in the state of Louisiana.” Furthermore, the agreement imposes $5,000 of liquidated damages for any customer who files a lawsuit.
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