Oberstein v. Live Nation
Oberstein v. Live Nation
Plaintiffs-Appellants,
OPINION
v.
Defendants-Appellees.
SUMMARY **
Arbitration
*
The Honorable Danny J. Boggs, United States Circuit Judge for the
U.S. Court of Appeals for the Sixth Circuit, sitting by designation.
**
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
OBERSTEIN V. LIVE NATION ENTERTAINMENT, INC. 3
COUNSEL
OPINION
fronts. First, they argue that the Terms are invalid for failing
to properly identify Appellees as parties to the agreement.
Second, they argue that Appellees failed to provide
constructive notice of the Terms under both California and
Massachusetts law. Alternatively, they claim that, even if the
district court did not err in finding constructive notice of the
Terms under California law, it erred in failing to analyze
constructive notice under allegedly more stringent
Massachusetts law as to Plaintiff-Appellant Burke, who is a
citizen of that state. Finally, they argue that the district court
erred in deciding the constructive-notice issue as a matter of
law. 1
II
We have jurisdiction over this appeal pursuant to 28
U.S.C. § 1291.
The Federal Arbitration Act (FAA) requires courts to
compel arbitration of claims covered by an enforceable
arbitration agreement. 9 U.S.C. § 3. The FAA limits the
courts’ role to “determining whether a valid arbitration
agreement exists and, if so, whether the agreement
encompasses the dispute at issue.” Lifescan, Inc. v. Premier
Diabetic Servs., Inc., 363 F.3d 1010, 1012 (9th Cir. 2004).
“In determining whether the parties have agreed to arbitrate
a particular dispute, federal courts apply state-law principles
1
Ticket Purchasers advance another argument concerning the scope of
the arbitration provision, but acknowledge that the issue has already been
decided against them by this court. See Oracle Am., Inc. v. Myriad Grp.
A.G., 724 F.3d 1069 (9th Cir. 2013) (holding that a carve-out provision
excepting certain claims from an arbitration provision does not abridge
an otherwise clear and unmistakable delegation of arbitrability questions
to the arbitrator). They seek to preserve this argument for en banc or
Supreme Court review.
OBERSTEIN V. LIVE NATION ENTERTAINMENT, INC. 7
2
In a section of the purchase policy titled “Who You Are Buying From,”
the policy informs users that “Ticketmaster LLC” handles the sale of
tickets purchased in the United States.
OBERSTEIN V. LIVE NATION ENTERTAINMENT, INC. 9
3
The use of these terms (“us,” “we,” and “ours”) along with statements
that the Terms govern any “use of Live Nation and Ticketmaster’s sites”
and all purchases of “Live Nation or Ticketmaster tickets, products, or
services,” forecloses Ticket Purchasers’ argument that the Terms convey
that there is only one ticket-selling entity.
OBERSTEIN V. LIVE NATION ENTERTAINMENT, INC. 11
4
For its part, the First Circuit, in Bekele v. Lyft, Inc., 918 F.3d 181, 187
(1st Cir. 2019), noted that “Cullinane did not substantial[ly] change the
applicable law.
OBERSTEIN V. LIVE NATION ENTERTAINMENT, INC. 17
the rest of the text. The notices were not buried on the bottom
of the webpage or placed outside the action box, but rather
were located directly on top of or below each action button.
And, in contrast with the noncommittal free trial offered in
Sellers, the context of this transaction, requiring a full
registration process, reflected the contemplation of “some
sort of continuing relationship” that would have put users on
notice for a link to the terms of that continuing relationship.
See ibid.
We find it worth emphasizing that while Appellees’
Terms meet the reasonably conspicuous standard, this
hybrid form of agreement is not without its risks and invites
second-guessing. See Berman, 30 F.4th at 868 n.4 (Baker, J.,
concurring). To ensure that an online agreement passes
muster, clickwrap is the safest choice. However, guided by
the principles set forth by this court and other courts across
this country, we hold that, under the undisputed facts here,
the Appellees presented their Terms so as to be reasonably
conspicuous to the average user.
The second part of the analysis—whether the user took
some action that unambiguously manifested the user’s assent
to the agreement—is straightforward on these facts. Ticket
Purchasers do not contest that the notices at issue explicitly
alert the user that by creating an account, signing in, or
purchasing a ticket, and proceeding to the next page, the user
“agrees to our Terms of Use.” As the Berman court
emphasized, that is all that is required. Id. at 858 (“[The]
notice defect could easily have been remedied by including
language such as, ‘By clicking the Continue >> button, you
agree to the Terms & Conditions.’” (citing Meyer, 868 F.3d
at 78–80)).
22 OBERSTEIN V. LIVE NATION ENTERTAINMENT, INC.
here, the district court did not err in finding that constructive
notice was established as a matter of law.
AFFIRMED.