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Holl v. United Parcel Service
United States District Court for the Northern District of California
2017 U.S. Dist. LEXIS 153317 (2017)
Randall Holl (plaintiff) enrolled online in the My Choice Program with United Parcel Service, Inc. (UPS) (defendant). To complete registration for the program, users had to click a checkbox agreeing to the UPS My Choice Service Terms, which were hyperlinked next to the box and viewable to users. The service terms expressly incorporated the UPS Tariff/Terms and Conditions of Service, which could be found on the UPS website. One provision of the Tariff/Terms was that the user and UPS agree that any controversies or claims arising out of or related to UPS’s provision of services would be resolved by binding arbitration. The provision prohibited class-wide and collective options for arbitration. Holl did not recall viewing the Tariff/Terms text while enrolling in the My Choice Program. After Holl enrolled, UPS added a hyperlink in the service terms connecting to the Tariff/Terms. Holl shipped a package, and UPS charged a delivery-area surcharge. The amount charged was higher than the amount listed in UPS’s retail-rates documents. Holl filed a class-action suit in federal district court against UPS for the surcharge discrepancy. UPS filed a motion to compel arbitration under the Tariff/Terms provisions and to stay proceedings.
Rule of Law
Holding and Reasoning (Gilliam, J.)
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