Selected Online Contracts Cases
Last updated 10/16/2006
This is a list of cases involving online contract formation, interpretation and enforceability.
American Airlines, Inc. v. Farechase,
America Online, Inc. v. Pasieka (Fla. Dist. Ct. App. Jan. 29, 2004) (refusing to uphold AOL’s forum selection clause for consumer protection claims).
Aral v. Earthlink, Inc. (
Barnett v. Network Solutions, Inc. 38 S.W.3d 200 (
Bergraft v. eBay (N.J. Super.
Caspi v. Microsoft Network L.L.C., 732 A.2d 528 (N.J. Superior Ct. July 2, 1999) (upholding the forum selection clause in MSN’s click-through scrollable user agreement). http://www.bna.com/e-law/cases/caspi.html.
Comb v. PayPal, Inc., 218 F. Supp. 2d 1165 (N.D. Cal. Aug.30, 2002) (rejecting a motion to compel arbitration because the user agreement was unconscionable). http://pub.bna.com/eclr/021227.htm.
Davidson & Assoc., Inc. v. Internet Gateway, 334 F.
Supp. 2d 1164 (E.D.
Decker v. Circus Circus Hotel, 49 F. Supp. 2d 743 (D. N.J. May 12, 1999) (dismissing jurisdiction based on Internet order for a hotel room given forum selection language on the site).
DeFontes v. Dell Computers Corp., 2004 R.I. Super. LEXIS 32,52 U.C.C. Rep. Serv. 2d 823 (Del. Super. Jan. 29, 2004) (rejecting Dell’s browse-wrap license in accordance with Specht; rejecting Dell’s shrink-wrap for lack of “sufficient notice of the method to reject”).
DeJohn v. .TV Corp., 245 F. Supp. 2d 913 (N.D. Ill. Jan 16,2003) (upholding Register.com’s click-through agreement for domain name registrations).
DiLorenzo v. America Online, Inc. (N.Y. Supreme Ct. January22, 1999) (upholding AOL’s choice of forum clause in its terms of service), http://legal.web.aol.com/decisions/dlother/dilorenzo.html.
Dix v. ICT Group (
Durick v. eBay, 2006 WL 2672795
EIJ, Inc. v. United Parcel Serv.,
Inc., 2004 U.S. Dist. LEXIS 18481 (C.D.
ESL Worldwide.com, Inc. v. Interland, Inc., 06 CV 2503 (S.D.N.Y. June 21, 2006) (upholding forum selection clause in mandatory clickthrough agreement).
Evans v. Matlock 2002 Tenn. App. LEXIS 906 (
Forrest v. Verizon Communications, Inc., 805 A.2d 10007 (D.C. App.
Freedman v. America Online, 294 F. Supp. 2d 238 (D. Conn. Dec. 5, 2003) (upholding AOL’s forum selection clause).
Grace v. eBay, 120
Hotmail Corporation v. Van$ Money Pie Inc., 47 U.S.P.Q.2d (BNA) 1020 (N.D. Cal., April 20, 1998) (a default judgment finding, among other things, that spammers breached Hotmail’s click-through agreement, that a violation of the click-through agreement was trespass, and that bogus consent to a click-through agreement was fraud/misrepresentation), http://eric_goldman.tripod.com/caselaw/hotmailvvansmoneypie.htm.
Hubbert v. Dell Corp. (
Hughes v. McMenamon, 204 F. Supp. 2d 178 (D. Mass. May 28, 2002) (upholding AOL’s user agreement).
I-Systems, Inc. v. Softwares, Inc., 2004 U.S. Dist. LEXIS 6001 (D. Minn. Mar. 29, 2004) (denying summary judgment in part by upholding I-Systems’ click-through and shrink-wrap licenses).
I.Lan Sys., Inc. v. Netscout Serv. Level Corp., 183 F. Supp. 2d 328 (D. Mass. Jan. 2, 2002) (upholding a click-wrap license).
Jessup-Morgan v. America Online, 20 F. Supp. 2d 1105 (E.D. Mich. July 23, 1998) (finding that a user had breached AOL’s Member Agreement by sending a false message to USENET), http://legal.web.aol.com/decisions/dlpriv/jessup.html.
Mariano, Gwendolyn, Juno Settles Terms-of-Service Dispute,
CNET News.com, May 7, 2002, at http://news.com.com/2102-1023-901740.html
Kanitz v. Rogers Cable Inc., 112 A.C.W.S. 3d 48, 21 T.L.W.D. 2146-014 (Ont. S.C.J. Feb. 22, 2002) (upholding an amendment to a written user agreement that was notified via email with a link to a website containing the amendment).
Kilgallan v. Network Solutions, 99 F. Supp. 2d 125 (D. Mass. May 31, 2000) (Defendant’s email stating “In making payments for invoice below, Registrant agrees to the terms of the current . . . Agreement” is upheld as an offer while Plaintiff’s mailing of payment is upheld as the acceptance).
Koch v. America Online, 139 F. Supp. 2d 690 (D. Md. 2000) (enforcing AOL’s forum selection clause).
Liekschke v. RealNetworks, Inc., 2000 U.S. Dist. LEXIS 1683 (N.D. Ill. February 10, 2000) (directing arbitration pursuant to RealNetworks’ click-wrap user agreement).
Lim v. dotTV Corp. (
Miles v. America Online, 202 F.R.D. 297 (M.D.
Mortgage Plus, Inc. v. DOCMAGIC, Inc., 2004 U.S. Dist. LEXIS 20145 (D. Kan. Aug. 23, 2004) (upholding click-wrap license and forum selection clause within license).
Motise v. America Online, Inc., 346 F. Supp. 2d 563 (S.D.N.Y. Nov. 30, 2004) (third parties who are using a member’s service are subject to the same terms of service as that member).
Mudd-Lyman Sales and Service Corp. v. United Parcel Service, Inc., 236 F. Supp. 2d 907 (N.D. Ill. Nov. 26, 2002) (proper contract formation through shrink-wrap agreement and click-through agreement), http://www.sfl-legal.com/cases%202003/Mudd-Lyman%20v.%20UPS.htm.
Net2Phone, Inc. v. State ex rel
Consumer Cause, Inc., 109
Network Solutions, Inc. v. Hoblad, 82 Fed. Appx. 845 (4th Cir. Dec. 19, 2003) (upholding online NSI’s registration agreement).
Novak v. Overture Servs., 309 F. Supp. 2d. 446 (E.D.N.Y. Mar.25, 2004) (upholding Google’s discussion groups click-through terms and conditions agreement, specifically the forum selection clause).
Nazaruk v. eBay, 2006 WL 2666429 (D. Utah Sept. 14, 2006) (upholding eBay’s forum selection clause).
Oppedahl & Larson v. Network Solutions, Inc., 3 F. Supp. 2d 1147 (D. Colo. April 16, 1998) (deeming the application of NSI’s online registration contract in Oppedahl’s circumstance a question of fact), http://www.bna.com/e-law/cases/oppensi.html.
Person v. Google Inc., 2006 WL 2884444 (S.D.N.Y. Oct. 11, 2006) (upholding forum selection clause in Google’s AdWords user agreement).
Pollstar v. Gigmania
Ploharski v. eBay (N.D. Ga. August 1, 2000) (upholding the forum selection clause in eBay’s user agreement).
Prudential Insurance Co. v. Prusky
In re. RealNetworks, 2000 U.S. Dist. LEXIS 6584 (N.D. Ill. May 8, 2000) (upholding a click-through agreement with arbitration and forum selection clause).
Register.com v. Verio, 126 F. Supp. 2d 238 (S.D.N.Y. Dec. 8, 2000) (upholding Register.com’s click-through [“by submitting this query, you agree to abide by these terms”]), http://www.icann.org/registrars/register.com-verio/order-08dec00.htm. Affirmed by Register.com v. Verio, 356 F.3d 393 (2d Cir. Jan. 23, 2004).
Rosenfeld v. Zerneck, 2004 NY Slip
Op 2143 (NY Supreme
Scarcella v. America Online, 4
Misc. 3d 1024A (N.Y. Civ.
Affirmed by Appellate Division, Dec. 28, 2005, http://www.steptoe.com/publications/389a.pdf.
Shattuck v. Klotzbach,
SmartText Corp. v. Interland, Inc. (D. Kan. Dec. 19, 2003) (whether failure to respond to an email is acceptance through silence is a question of fact; later history, Interland failed to reply and default judgment was granted in favor of SmartText [2004 U.S. Dist. LEXIS 6469]), http://www.ksd.uscourts.gov/opinions/032393-17.pdf.
Sotelo v. DirectRevenue, LLC, No. 05 C 2562 (N.D. Il.. Aug. 29, 2005) (browse-wrap style contract formation failed), http://www.spywarewarrior.com/SCAN2854_000.pdf.
Spera v. America Online, Inc. (N.Y. Supreme Court, January27, 1998) (upholding the enforceability of a forum selection clause in AOL’s click-through terms of service).
Specht v. Netscape Communications Corp., 150 F.Supp.2d 585 (S.D.N.Y., July 5, 2001) (non-mandatory click-through is not a binding contract), http://www.nysd.uscourts.gov/courtweb/pdf/D02NYSC/01-07482.PDF. Affirmed on appeal, 306 F.3d 17 (2d Cir. Oct. 1, 2002), http://csmail.law.pace.edu/lawlib/legal/us-legal/judiciary/second-circuit/test3/01-7860.opn.html.
Ticketmaster, Inc. v. Tickets.com, 54 U.S.P.Q.2d (BNA) 1344 (C.D.
Thompson v. Handa-Lopez, Inc., 998 F. Supp. 738 (N.D. Tex. Mar. 25, 1998) (declining to give effect to an express but “inconspicuous” clause in the user agreement requiring arbitration in the defendant’s home court).
Waters v. Earthlink, Inc., 91 Fed. Appx. 697 (1st Cir. Oct. 31, 2003) (affirming district court’s refusal to enforce an user agreement that was merely “linked” on an arbitrary webpage).
Zurakov v. Register.com (N.Y. App. Div. April 22, 2003) (discussing what a domain name registrant expected based on their contract), http://www.courts.state.ny.us/reporter/slips/13230.htm.
Other non-cyberspace cases to consider:
1-A Equipment Company v. Icode, Inc, 2003 Mass. App. Div. 30(Feb. 21, 2003) (upholding the forum selection clause in Icode’s click-through license).
Bischoff v. DirectTV Inc., 180 F. Supp. 2d 1097 (C.D. Cal.2002) (upholding satellite TV provider’s customer agreement).
Boomer v. AT&T Corp., 2002 U.S. Dist. LEXIS 10679 (N.D. Ill. June 13, 2002) (refusing to grant motion to compel arbitration based on service agreement, which was “accepted” upon continuation of use of service.). Reversed on appeal, Boomer v. AT&T Corp., 309 F.3d 404 (7th Cir. Oct. 3, 2002).
Briceno v. Sprint Spectrum, L.P., 2005 WL 2093681 (Fla. App. August 31, 2005) (cellphone terms and conditions upheld).
Brower v. Gateway 2000, 676 N.Y.S.2d 569 (N.Y. App. Div., August 13, 1998), http://www.ljx.com/cgi-bin/f_cat?test/ht-docs/ny.archive.html/98/08/081798dd.html.
Discover Card v. Superior Court ex rel
Boehr (Cal. Sup.
Hill v. Gateway 2000, 105 F.3d 1147 (7th Cir. 1997), http://www.law.emory.edu/7circuit/jan97/96-3294.html.
Klocek v. Gateway, Inc., 104 F. Supp. 3d 1332 (D. Kansas, June 15, 2000) (rejecting the enforceability of shrink-wraps), http://www.ksd.uscourts.gov/opinions/99-2499-26.html.
Laster v. T-Mobile USA, Inc., ___ F.Supp.2d ___ (S.D. Cal. Nov. 30, 2005) (cellphone arbitration clauses unconscionable).
Levy v. Gateway 2000, Inc. 1997 WL 823611 (N.Y. Sup. Aug. 12, 1997) (enforcing the agreements sent within a package).
Licitra v. Gateway, Inc., 734 N.Y.S.2d 389 (NY Civil Court Oct. 2001) (small claims action trumps arbitration clause in user agreement).
Lively v IJAM, Inc., 2005 OK Civ. App. 29 (2005) (contract formed when computer ordered by telephone; subsequent terms contained in box were disregarded).
M.A. Mortensen Co. v. Timberline Software Corp., 970 P.2d803 (Wash. Ct. App. Feb. 1, 1999) (upholding the enforceability of a shrink-wrap agreement included on the envelope inside the box), http://www.bna.com/e-law/cases/timber.html.
Mattingly v. Hughes Elecs. Corp., 2002 WL 3144472 (Md. Ct. Spec. App. Nov. 4, 2002) (amendment to customer agreement failed).
ProCD v. Zeidenberg, 89 F.3d 1257 (7th Cir. 1996), http://www.bna.com/e-law/cases/procd.html.
Rinaldi v. Iomega, 1999 WL 1442014 (Del. Super. Sept. 3, 1999) (enforcing a disclaimer of warranties contained inside the packaging when there was a refund opportunity).
Stenzel v. Dell, Inc. (Sup. Ct. Maine Mar. 15, 2005).
Storm Impact Inc. v. Software of the Month Club, 1998 U.S. Dist. LEXIS 11789 (N.D. Ill. July 29, 1998) (shareware license agreement contained valid restrictions on redistribution).
Ting v. AT&T, 182 F. Supp. 902 (N.D. Cal. Jan. 15, 2002) (striking down an arbitration clause in a service agreement as unconscionable).
Westendorf v. Gateway 2000, Inc., 2000 WL 307369 (