Foster v. Walmart, Inc.
United States Court of Appeals for the Eighth Circuit
15 F.4th 860 (2021)
- Written by Jamie Milne, JD
Facts
Twenty-nine purchasers (plaintiffs) bought gift cards from Walmart, Inc. (defendant) only to later find that the cards were worthless, the funds having been stolen by a third party. When Walmart refused to provide refunds, the purchasers sued Walmart in federal district court. Walmart moved to compel arbitration. It argued that it had an arbitration agreement with the purchasers because the gift cards included a notation on the back telling customers to see Walmart.com for complete terms, and the terms included an arbitration clause. The clause stated that customers assented to arbitration by using or accessing Walmart’s websites. Although it was undisputed that the purchasers’ gift cards could be used in-store or online at Walmart.com, it was disputed which purchasers, if any, actually accessed Walmart.com. The district court denied Walmart’s motion to compel arbitration, finding that the arbitration clause was not binding on the purchasers because they never had notice of the clause. Walmart appealed, arguing in part that questions of fact existed as to whether the parties had an arbitration agreement, necessitating a trial to decide that matter.
Rule of Law
Issue
Holding and Reasoning (Stras, J.)
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