PAUL G. BYRON, District Judge.
This matter is before the Court on Plaintiff AMC Pinnacle, Inc.'s ("
AMC initiated this suit on July 10, 2018, seeking injunctive and declaratory relief from Jeunesse's Demand for Arbitration (the "
According to Jeunesse, the dispute is governed by the Arbitration Provision to which Chang agreed when she signed up online to become a distributor. (Doc. 38, p. 4). Jeunesse asserts that Chang again agreed to the Arbitration Provision in March 2017 by reaffirming her acceptance to the Global Policies and Procedures Terms and Conditions (
Section A.13.1 of the Global Policies Agreement reads, in pertinent part:
(Doc. 50-1, p. 37-38, § A.13.1 (emphasis in original)).
On June 20, 2018, Jeunesse initiated the arbitration by filing the Demand with the Miami Division of the American Arbitration Association against Chang. (Doc. 27, ¶ 15). Thereafter, AMC filed this action to enjoin the arbitration. (Id. ¶¶ 35-52). In its Motion, AMC argues the dispute should not go to arbitration because: (1) Chang did not affirmatively consent to arbitrate due to Jeunesse's use of a "browsewrap" agreement; (2) the Global Policies Agreement, and therefore the Arbitration Provision, is unenforceable as illusory and unconscionable; and (3) an action seeking injunctive relief falls outside the scope of the Arbitration Provision. (Doc. 35).
In the October 25 hearing, AMC's counsel conceded the first issue regarding whether Chang consented to the Global Policies Agreement. (October 25, 2018, Preliminary Injunction Hearing, Unofficial Transcript). In its Motion, AMC initially characterized the Global Policies Agreement as a "browsewrap" agreement. (Doc. 35, p. 10). AMC argued that Chang did not affirmatively consent to the Global Policies Agreement by citing cases where "browsewrap" agreements were found unenforceable. (Id. at pp. 10-13 (citing Nguyen v. Barnes & Noble, Inc., 763 F.3d 1171 (9th Cir. 2014)). However, AMC's counsel admitted that the Global Policies Agreement presented to Chang in March 2017 should properly be characterized as a "clickwrap" agreement. (October 25, 2018, Preliminary Injunction Hearing, Unofficial Transcript (admitting repeatedly that Chang "clicked on the [March 2017] agreement" and acknowledging that "[Jeunesse] properly cites the law" regarding "clickwrap" agreements as enforceable)). In Florida, "clickwrap agreements are valid and enforceable contracts." Segal v. Amazon, Inc., 763 F.Supp.2d 1367, 1369 (S.D. Fla. 2011). Therefore, AMC concedes that Chang consented to the Global Policies Agreement.
Accordingly, the Court is left with AMC's remaining arguments regarding the enforceability and scope of the Arbitration Provision.
To obtain a preliminary injunction, as the movant, Plaintiff must establish: (1) a substantial likelihood of success on the merits of the underlying case; (2) irreparable harm in the absence of an injunction; (3) that the harm suffered by Plaintiff in the absence of an injunction would exceed the harm suffered by Defendants if the injunction issued; and (4) that an injunction would not disserve the public interest. Johnson & Johnson Vision Care, Inc. v. 1-800 Contacts, Inc., 299 F.3d 1242, 1246-47 (11th Cir. 2002). "[A] preliminary injunction is an extraordinary and drastic remedy not to be granted unless the movant clearly establishe[s] the `burden of persuasion' as to each of the four prerequisites." Siegel v. LePore, 234 F.3d 1163, 1176 (11th Cir. 2000) (quoting McDonald's Corp. v. Robertson, 147 F.3d 1301, 1306 (11th Cir. 1998)). Further, "[i]f the movant is unable to establish a likelihood of success on the merits, a court need not consider the remaining conditions prerequisite to injunctive relief." 1-800 Contacts, Inc., 299 F.3d at 1247.
To satisfy its burden as the movant, AMC must establish a substantial likelihood of success on its claims seeking to enjoin the arbitration demanded by Jeunesse. See Siegel, 234 F.3d at 1176. This requires AMC to prove that the Arbitration Provision is either (1) unenforceable or (2) that this proceeding falls outside its scope. First, AMC challenges the enforceability of the Arbitration Provision, alleging that the Global Policies Agreement, including the Arbitration Provision, is illusory and unconscionable. (Doc. 35, p. 13 n.4). Second, AMC argues that the language of the Arbitration Provision provides a "carve-out exception" for preliminary injunctions such as this one. (Id. at pp. 7-8). The Court finds that these arguments fail, therefore AMC cannot establish a substantial likelihood of success on the merits.
Before the Court can determine the enforceability of the Arbitration Provision, the Court must first address whether it has the authority to make such an inquiry. See U.S. Nutraceuticals, LLC, v. Cyanotech Corp., 769 F.3d 1308, 1311 (11th Cir. 2014). Arguments regarding the enforceability of arbitration agreements go to the issue of arbitrability. Ordinarily, "the question of arbitrability . . . is undeniably an issue for judicial determination . . . [u]nless the parties clearly and unmistakably provide otherwise." AT&T Tech., Inc. v. Commc'ns Workers of Am., 475 U.S. 643, 649 (1986). If parties "clearly and unmistakably agree" that the arbitrator should decide whether an arbitration clause applies, then questions regarding arbitrability are no longer within the bounds of the Court's authority. Id.
The inclusion of delegation clauses within arbitration agreements evidence parties "clearly and unmistakably agree[d]" to transfer questions of arbitrability to the arbitrator. Terminix Int'l Co. v. Palmer Ranch LP, 432 F.3d 1327, 1332 (11th Cir. 2005). The Eleventh Circuit recognizes delegation clauses as an enforceable means to transfer the Court's authority to the arbitrator. See id. Thus, faced with a valid delegation clause, courts are required to refer claims to arbitration to allow the arbitrator to decide gateway arbitrability issues such as whether an arbitration agreement is illusory or unconscionable. Rent-A-Ctr., W., Inc. v. Jackson, 561 U.S. 63, 69 (2010); U.S. Nutraceuticals, 769 F.3d at 1311.
Jeunesse argues that the Arbitration Provision includes a valid delegation clause, citing the following language:
(Doc. 50-1, p. 37-38, § A.13.1). By incorporating the AAA rules, Jeunesse alleges that the parties agreed to delegate gateway arbitrability issues to the arbitrator. (Doc. 38, p. 13 n.1). Specifically, AAA Rule 8(a) provides that "[t]he arbitrator shall have the power to rule on his or her own jurisdiction, including any objections with respect to the existence, scope or validity of the arbitration agreement." Terminix Int'l Co, 432 F.3d at 1332.
The Court agrees with Jeunesse that incorporation of the AAA rules gives rise to a valid delegation clause. In Terminix, the Eleventh Circuit found nearly identical language incorporating the AAA rules to serve as a valid delegation clause. See id. (quoting an arbitration agreement that stated "arbitration shall be conducted in accordance with the Commercial Arbitration Rules then in force of the American Arbitration Association"). "By incorporating the AAA Rules, including Rule 8, into their agreement, the parties clearly and unmistakably agreed that the arbitrator should decide whether the arbitration clause is valid." Id. Therefore, the Eleventh Circuit referred the claims, including the issue of arbitrability, to the arbitrator. Id. at 1333; see also U.S. Nutraceuticals, 769 F.3d at 1311 (referring claims to arbitration where the parties "incorporated the rules of the [AAA] into their contract").
Therefore, the Court finds that the Arbitration Provision contained a valid delegation clause requiring the Court to refer gateway issues of arbitrability to the arbitrator. See Terminix Int'l Co, 432 F.3d at 1332. Accordingly, the Court declines to address AMC's arguments regarding whether the Arbitration Provision is illusory or unconscionable.
AMC also argues that the current proceeding is covered by an exception to the Arbitration Provision, therefore the Court should retain jurisdiction rather than referring the dispute to the arbitrator. (Doc. 35, pp. 8-9). Specifically, AMC claims the preliminary injunction sought is contemplated as falling within the following carve-out language:
(Doc. 50-1, p. 37-38, § A.13.1 (emphasis added)). AMC contends that this language "expressly authorizes" it to seek a preliminary injunction to "protect its right to access to the courts." (Doc. 35, p. 8; October 25, 2018, Preliminary Injunction Hearing, Unofficial Transcript).
The Court is unconvinced by AMC's interpretation of the Arbitration Provision's carve-out language. Under general principles of contract interpretation, "a document should be read to give effect to all its provisions and to render them consistent with each other." In re FFS Data, Inc., 776 F.3d 1299, 1305 (11th Cir. 2015) (citing Restatement Second of Contracts § 203(a) (Am. Law. Inst. 1981)). AMC's suggested interpretation would render the Arbitration Provision meaningless by permitting a party to avoid arbitration entirely by seeking an injunction to "protect its right to access to the courts." See id.; (Doc. 50-1, p. 37-38, § A.13.1). This interpretation would contradict surrounding language, particularly the incorporation of the AAA rules that vest the arbitrator broad authority. See supra Section III.A. Rather, the Court interprets the language to allow a party to seek an injunction to ensure protection of its interest with respect to money, property, or other similar interests while the arbitration is pending, not as means to get injunctive relief from the arbitration in and of itself. Thus, the Court rejects AMC's interpretation and finds that the instant proceeding is not covered by the carve-out exception of the Arbitration Provision. AMC therefore fails to establish a substantial likelihood of success on the merits.
Accordingly, it is hereby