Filed: May 22, 2020
Latest Update: May 22, 2020
Summary: NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS MAY 22 2020 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT MARK TRUDEAU, et al., No. 18-17022 Plaintiffs-Appellants, D.C. No. 5:18-cv-00947-BLF v. GOOGLE LLC, MEMORANDUM* Defendant-Appellee. Appeal from the United States District Court for the Northern District of California Beth Labson Freeman, District Judge, Presiding Argued and Submitted May 14, 2020 San Francisco, California Before: FRIEDLAND and BENNETT, Circuit Ju
Summary: NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS MAY 22 2020 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT MARK TRUDEAU, et al., No. 18-17022 Plaintiffs-Appellants, D.C. No. 5:18-cv-00947-BLF v. GOOGLE LLC, MEMORANDUM* Defendant-Appellee. Appeal from the United States District Court for the Northern District of California Beth Labson Freeman, District Judge, Presiding Argued and Submitted May 14, 2020 San Francisco, California Before: FRIEDLAND and BENNETT, Circuit Jud..
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NOT FOR PUBLICATION FILED
UNITED STATES COURT OF APPEALS MAY 22 2020
MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS
FOR THE NINTH CIRCUIT
MARK TRUDEAU, et al., No. 18-17022
Plaintiffs-Appellants,
D.C. No. 5:18-cv-00947-BLF
v.
GOOGLE LLC, MEMORANDUM*
Defendant-Appellee.
Appeal from the United States District Court
for the Northern District of California
Beth Labson Freeman, District Judge, Presiding
Argued and Submitted May 14, 2020
San Francisco, California
Before: FRIEDLAND and BENNETT, Circuit Judges, and RAKOFF,** District
Judge.
Plaintiffs-appellants Mark Trudeau and Troy Martial Arts, Inc. appeal the
district court’s order granting defendant-appellee Google LLC’s motion to compel
arbitration. We have jurisdiction under 28 U.S.C. § 1291, and we review the
*
This disposition is not appropriate for publication and is not precedent
except as provided by Ninth Circuit Rule 36-3.
**
The Honorable Jed S. Rakoff, United States District Judge for the
Southern District of New York, sitting by designation.
district court’s decision de novo. Knutson v. Sirius XM Radio Inc.,
771 F.3d 559,
564 (9th Cir. 2014).
We affirm. Even assuming arguendo that the 2017 Terms of Service
(“TOS”) did not effect a novation of the 2013 version, we conclude that nothing in
the arbitration agreement in Section 13(A) of the 2017 TOS contravenes Section
11 of the 2013 TOS. Section 11 of the 2013 TOS gave Google the right to
unilaterally modify the terms of service by posting new terms online, without first
seeking its counterparties’ affirmative acceptance of such terms. Plainly referring
only to unilateral changes promulgated under this provision, Section 11 stated that
such changes would not apply retroactively. But the 2017 TOS were adopted by
bilateral agreement between plaintiffs-appellants and Google; Google gave Mr.
Trudeau notice of the new terms and he affirmatively accepted them. The changes
effected by the 2017 TOS were thus not enacted through the mechanism of Section
11, and so Section 11 does not limit the retroactive application of the arbitration
agreement in the 2017 TOS.
Plaintiffs-appellants counter that the 2017 TOS must have been promulgated
through Section 11 of the 2013 TOS because the latter contained no other
provision authorizing modification of the terms. But none was necessary. Even
where a contract contains no express modification provision, ordinary principles of
contract formation would allow the parties to a contract to modify it via bilateral
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agreement, and for valid consideration. See Cal. Civ. Code §§ 1550 (“It is essential
to the existence of a contract that there should be: 1. Parties capable of contracting;
2. Their consent; 3. A lawful object; and, 4. A sufficient cause or consideration.”),
1698(a) (“A contract in writing may be modified by a contract in writing.”).
Plaintiffs-appellants’ next contention, that the 2017 TOS are ambiguous as
to whether the arbitration agreement in Section 13(A) applies to claims that had
already accrued at the time of the adoption of the arbitration agreement, is also
meritless. Section 13(A)(2) unambiguously provides that “[t]his agreement to
arbitrate . . . includes . . . claims that arose before Customer or Advertiser first
accepted any version of these Terms containing an arbitration provision.” There is,
moreover, no conflict between Section 13(A)(2) and Section 12. Section 12 of the
2017 TOS, like Section 11 of the 2013 TOS, allows Google to make future,
unilateral changes to the terms of service by posting such changes online. As did
its predecessor, Section 12 states that such changes (except as noted below) will
not apply retroactively. But because this restriction applies only to changes that
Google might unilaterally adopt in the future, not to the current terms adopted
bilaterally when Mr. Trudeau accepted the 2017 TOS, it creates no ambiguity in
the language of Section 13(A)(2).1
1
Plaintiffs-appellants had also argued that the arbitration agreement in the
2017 TOS is unenforceable under the line of cases beginning with Peleg v. Neiman
3
AFFIRMED.
Marcus Group, Inc.,
140 Cal. Rptr. 3d 38 (Ct. App. 2012). But plaintiffs-
appellants abandoned this argument shortly before oral argument, recognizing that
Peleg does not govern here because Mr. Trudeau “had expressly agreed to” the
2017 TOS. We therefore do not reach this issue. Cf. United States v. Sineneng-
Smith, No. 19-67,
2020 WL 2200834, at *3 (U.S. May 7, 2020).
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