Arbitration clauses are reasonably common in Terms of Service and EULAs. The logic has always been that keeping disputes out of court, keeping them more confidential, avoiding class actions and resolving claims faster and cheaper, is good. But recent cases involving Valve, Epic Games and Roblox illustrate the unintended risks of arbitration provisions. A Clause …
Epic Games v. Johnson. A guy named Johnson built a software platform for game developers while in college. In 2005, Epic Games negotiated with Johnson to purchase “Reality Engine” and recruited him to North Carolina from London. There were seven contracts that sold Johnson’s company and Reality Engine to Epic. In exchange, Epic gave Johnson …
An epic arbitration provision must be enforced – NC Court of Appeals Read More »
Opinion: DIRECTV v. Imburgia (pdf). Rather than rehash the opinion, here are links to some coverage: U.S. top court rules for DirecTV in arbitration case – Reuters. SCOTUS upholds contract ban on mass arbitration in second ADR case involving California law – ABA Journal. Opinion analysis: Justices rebuke California courts (again) for refusal to enforce arbitration agreement – …