In an order issued last week in Savetsky v. Pre-Paid Legal Services d/b/a LegalShield, District Judge Samuel Conti of the Northern District of California denied a defendant’s motion to compel arbitration. The court ruled that the arbitration clause found in the defendant’s standard customer contract was not enforceable. The ruling is of note because it involves a service operator that sought to enter into contract with customers both through an online mechanism and through a paper document. It was ineffective in both spheres. The purchasing process on its website did not result in the desired contract, and a follow-on paper-based agreement did not include sufficient language of acceptance.
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