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Caspi v. Microsoft Network LLC
Superior Court of New Jersey
732 A.2d 528 (N.J. Super. 1999)
Caspi and other Microsoft customers around the country (plaintiffs) brought suit against Microsoft Network LLC (Microsoft) (defendant) in New Jersey for breach of contract and fraud, among other claims, in regards to the membership agreement of Microsoft’s online service. Microsoft filed a motion to dismiss on account of the forum selection clause contained in the agreement. The clause stated that the State of Washington had jurisdiction over all disputes arising out of the membership. In signing up for Microsoft’s service, the plaintiffs had to navigate through various screens clicking “I Agree” before they could proceed. The plaintiffs had an opportunity to scroll through the agreement before accepting, but claimed they did not get sufficient notice. The trial court granted Microsoft’s motion to dismiss. The plaintiffs appealed.
Rule of Law
Holding and Reasoning (Kestin, J.)
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