Starke v. SquareTrade, Inc.

913 F.3d 279 (2019)

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Starke v. SquareTrade, Inc.

United States Court of Appeals for the Second Circuit
913 F.3d 279 (2019)

  • Written by Rose VanHofwegen, JD

Facts

Adam Starke (plaintiff) bought a CD player through Staples. He bought a protection plan to cover the CD player from SquareTrade, Inc. (defendant) through Amazon. Had he read through the Product Information and Things to Know on the order page, he would have discovered that SquareTrade plans are valid only for products purchased through Amazon. Had he clicked a warranty link, he could have read presale terms and conditions (T&Cs)—which had no arbitration provision. SquareTrade sent Starke an email with a hyperlink buried at the bottom that linked to his service contract and post-sale T&Cs, which included an arbitration provision. But the email was cluttered with diverse text in multiple colors, sizes, and fonts, distracting buttons, and promotions, and it did not direct Starke to the hyperlink or advise that he was agreeing to contract terms. Starke sent SquareTrade his Staples receipt as directed and received a confirmation back. When the CD player stopped working, SquareTrade denied coverage because it was not purchased through Amazon. Starke sued, and SquareTrade moved to compel arbitration. The court refused, and SquareTrade appealed.

Rule of Law

Issue

Holding and Reasoning (Lynch, J.)

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