Plaintiff Was Not Harmed Because Defendant Had Not Refused To Arbitrate, And Questioned Consolidation Of Claims Could Still Be Addressed By Arbitrator.
Kiana Jones sued Starz Entertainment, LLC, claiming violations of federal and state privacy laws after Starz allegedly disclosed her identity and video viewing history to third parties. Jones initiated arbitration proceedings under Starz’s Terms of Use, which included a mandatory arbitration clause. However, Jones and other claimants’ filings were consolidated by the arbitration provider, JAMS, to be presided over by a single arbitrator. Jones objected to the consolidation, arguing that it conflicted with her right to individual arbitration as outlined in the Terms. She petitioned the district court to compel individual arbitration. The district court denied her petition, holding that Jones was not "aggrieved" under the Federal Arbitration Act (FAA) and that the consolidation did not present a gateway question of arbitrability for the court.
The Ninth Circuit affirmed the district court’s decision, ruling that Jones was not aggrieved because Starz had not failed, neglected, or refused to arbitrate. Kiana Jones v. Starz Entertainment, LLC, 24:1645 (9th Cir. 2/28/25) (Clifton, Gould, Sanchez). The court found that the arbitration provider’s consolidation of the claims under its rules did not constitute a refusal to arbitrate and that Jones could raise her concerns about consolidation within the arbitration process itself. Additionally, the court ruled that Jones could not invoke unconscionability to modify the arbitration agreement she sought to enforce.
NOTE: 9 USC § 4 of the FAA states in part: "A party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate under a written agreement for arbitration may petition any United States district court which, save for such agreement, would have jurisdiction under Title 28, in a civil action or in admiralty of the subject matter of a suit arising out of the controversy between the parties, for an order directing that such arbitration proceed in the manner provided for in such agreement."
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