(The opinions expressed here are those of the author, a
columnist for Reuters.)
By Jenna Greene
Aug 16 (Reuters) - While Disney might not be winning any
public relations awards with its push to move a wrongful death
lawsuit brought by a widower in Florida out of the courts and
into arbitration, lawyers for the entertainment giant are not
without precedent in arguing the attempt is warranted.
Disney ( DIS ) lawyers from White & Case say a lawsuit by the
husband of a woman who died last year from an allergic reaction
after eating at a restaurant in the Disney Springs shopping
complex belongs in arbitration because he signed up for a trial
of streaming service Disney+ in 2019.
In doing so, the defense asserts, Jeffrey Piccolo agreed to
terms of use that include binding arbitration of "all disputes"
involving The Walt Disney Company ( DIS ) or its affiliates - never mind
that a personal injury claim stemming from allergen-tainted food
has little connection to, say, watching a Marvel movie on your
television.
Many social media users on X have reacted with outrage,
calling Disney's ( DIS ) motion to compel arbitration "ridiculous"
"abhorrent" and "unbelievable," among other choice insults.
But that doesn't mean it won't succeed.
Experts tell me the suit may hinge on how broadly the judge
interprets the arbitration agreement.
A Disney ( DIS ) spokesperson in a statement said, "We are deeply
saddened by the family's loss and understand their grief."
The spokesperson also said the restaurant where the woman,
who was severely allergic to nuts and dairy, dined "is neither
owned nor operated by Disney ( DIS )."
Outside counsel Raoul Cantero, a former Florida Supreme
Court justice who heads White & Case's Miami office, did not
respond to a request for comment.
The case began when Piccolo, his wife Kanokporn Tangsuan
(who was a doctor) and her mother ate at Raglan Road Irish Pub
and Restaurant on Oct. 5, 2023, allegedly selecting the eatery
because both Disney ( DIS ) and Raglan advertised that it made
accommodating people with food allergies a top priority.
Despite alleged assurances from the waiter that Tangsuan's
order was allergen-free, she had an acute allergic reaction
shortly after eating battered sea scallops, broccoli and corn
fritters, onion rings and vegan shepherd's pie, according to the
complaint in Orange County court. She died of anaphylaxis from
elevated levels of nut and dairy in her system, the complaint
said.
Legal counsel for Raglan Road from Lewis Brisbois did not
respond to a request for comment.
In its initial response in April to the complaint, Disney ( DIS )
made no mention of arbitration, instead arguing it was not
liable because it has no control over Raglan's operations or
management and merely serves as its landlord.
In an under-the-radar filing in late May, Disney ( DIS ) offered a
new defense: that the complaint is subject to arbitration based
on Piccolo's Disney+ subscription, as well as his use of the
company's website in 2023 to buy theme part tickets.
Corporations tend to favor arbitration in part based on an
assumption that professional jurists presiding over the matter
will take a more dispassionate view of evidence and damages than
jurors swayed by their emotions.
Piccolo's lawyer Brian Denney, who did not respond to a
request for comment, blasted Disney's ( DIS ) "surreal" argument in
court papers earlier this month in a filing that's attracted
widespread media coverage.
If Disney's ( DIS ) position is accepted, Denney said, it would mean
that any person who signs up for Disney+, even if only for a
short time, "will have forever waived the right to a jury trial"
against any and all Disney ( DIS ) entities.
Implausible as that may sound, the notion is not without
precedent. For example, as my Reuters colleague Alison Frankel
reported, the 4th U.S. Circuit Court of Appeals in 2020 held in
Mey v. DirecTV that a customer's contract with AT&T signed long
before AT&T acquired DirecTV nonetheless compelled the
plaintiff to arbitrate an unrelated claim against the satellite
company.
On the other hand, the 9th Circuit came to the opposite
conclusion a month later. The San Francisco-based court said it
would be "absurd" to make customers arbitrate all disputes with
any corporate entity that happens to be acquired by AT&T years
or even decades in the future.
In the Disney ( DIS ) case, Matthew Adler, a Troutman Pepper partner
and author of the law school textbook "Commercial Arbitration:
Cases, Problems and Practice," said that to him, it's "obvious
that an arbitration clause exists." Adler is not involved in the
Disney ( DIS ) case.
"I am less positive about the reach of the clause itself,"
he said via email. That is, can the arbitration agreement "be
interpreted to reach far beyond the streaming services" to cover
a wrongful death claim at a restaurant? Adler suggested that
deposition testimony and other documents may help the court
reach an answer.
A recent decision by a Texas court of appeals involving a
bank customer and a broken chair offers another example of
courts taking an expansive view of arbitration clauses.
In that case, arbitration scholar Imre Stephen Szalai, a
professor at Loyola University New Orleans College of Law, said
via email, a customer sitting in the bank's lobby in a chair
that suddenly collapsed filed a personal injury lawsuit against
the bank. The Beaumont-based court dismissed the case based on
the arbitration clause found in the terms governing the
customer's bank account.
Other courts, however, take a "nexus" approach, Szalai said,
and examine the extent to which the claim has a connection with
the arbitration agreement. In the Disney ( DIS ) case, a judge may find
that "the purpose of the Disney Terms of Use was to govern
online, intellectual property rights, but not a visit to the
restaurant."
"Disney ( DIS ) does not have a 'slam dunk,' sure-win case," he added.