In the age of online retail and grocery shopping, many people still join warehouse clubs for additional savings. As part of their warehouse memberships, customers may agree to certain terms, including their willingness to arbitrate and forego filing a lawsuit when a dispute arises.
In Century Plastics, LLC v Frimo, Inc, unpublished opinion of the Michigan Court of Appeals, issued Jan. 30 (Docket No. 347535), 2020 WL 504977, the appellate court affirmed the circuit court’s granting of summary disposition for the defendant on the basis that the parties had an agreement to arbitrate.
“Defendant having incorporated the General Terms into the parties’ contract, under the unambiguous language of this provision, defendant had the power to compel arbitration of disputes arising under the contract. Plaintiff assented to the terms of the price quotation, and it did not raise any concerns” as to the applicability of the General Terms.
In light of this decision, warehouse clubs should review their terms and conditions and consider whether to remove a lawsuit from an unfavorable, plaintiff-friendly venue and place it into arbitration, where the fact-finder arbitrator may be more well-informed as to the law and can then apply that knowledge to the facts of whatever dispute arises between the parties.
As Benjamin Franklin said, “When will mankind be convinced and agree to settle their difficulties by arbitration?” With more and more stories of runaway juries, that time may be now.
A partner in the firm's Bloomfield Hills office, Abe Barlaskar concentrates his litigation practice on defending insurers and personal line carriers, rental car companies, trucking companies, and corporations and ...
Add a comment
SubscribeRSS Plunkett Cooney LinkedIn Page Plunkett Cooney Twitter Page Plunkett Cooney Facebook Page
- Premises Liability
- Residential Liability
- Retail Liability
- Alternative Dispute Resolution (ADR)
- Civil Litigation
- Commercial Liability
- Litigation Discovery
- Motor Vehicle Liability
- Liquor Liability
- Commercial Real Estate
- Auto Liability
- Judicial Estoppel
- No Fault Liability
- Trucking Liability
- Wrongful Death
- Open & Obvious Doctrine
- Open & Obvious
- Snow & Ice Claims
- Risk Management
- Business Risk Management
- Real Estate
- FDA Regulations
- Food Law
- Foodservice & Hospitality
- Regulatory Law
- Constructive Notice
- Governmental Immunity
- Warehouse Clubs Should Consider Arbitration for Member Disputes
- Truck Driver’s Bodily Injury Claim Barred by his Bankruptcy Case
- Intoxication Bars College Student’s Estate from Wrongful Death Action
- New Supreme Court Discovery Rule Places Emphasis on Proportionality Over Relevance
- Court Reinforces Principle That Landowners Generally Have no Duty to Prevent Criminal Acts
- Don't Drink and File... a Lawsuit
- Michigan Court of Appeals Affirms Black Ice Remains Open and Obvious
- Phantom Employees Create a 'Question of Fact' for Notice Defense
- Social Media can Derail Defense of Your Premises Liability Case
- The Down and Dirty on Manufacturing Clean Foods, Using Clean Labeling