Supreme Court denies Coinbase’s request to compel arbitration in Dogecoin sweepstakes dispute

4 months ago

The US Supreme Court denied Coinbase’s question to compel arbitration related to its Dogecoin (DOGE) sweepstakes connected May 23.

The justice ruled that “a court, not an arbitrator,” indispensable determine whether 1 of Coinbase’s agreements supersedes the other.

The archetypal statement is Coinbase’s User Agreement, which states that an arbitrator volition grip disputes. The 2nd statement is the authoritative sweepstake rules, which incorporate a forum enactment clause granting California courts sole jurisdiction implicit sweepstakes-related controversies.

The lawsuit represents a nonaccomplishment for Coinbase, which sought arbitration.

Coinbase CLO Paul Grewal commented concisely connected the outcome, writing: “some you triumph … immoderate you lose,” and thanked the tribunal for its consideration.

Earlier rulings affirmed

The Supreme Court ruling affirms an earlier determination by the US Court of Appeals for the Ninth Circuit and, successful turn, a determination from the Northern District of California. Both courts recovered that the authoritative sweepstake rules controlled the quality and it was not eligible for arbitration.

Justice Ketanji Brown Jackson said that disputes tin beryllium arbitrated erstwhile some sides hold to arbitration but that parties whitethorn person a secondary disagreement astir whether they agreed to arbitration.

Jackson besides commented connected Coinbase’s contention that the Ninth Circuit courts improperly applied California authorities instrumentality successful its earlier decisions. Jackson said that the Supreme Court “decline[s] to see auxiliary questions” connected the matter, which are beyond the scope of the question presented.

Furthermore, Jackson denied that the determination would “invite chaos” by allowing challenges to delegation causes,  stating:

“Regardless, wherever the parties person agreed to two contracts, a tribunal indispensable determine which declaration governs.”

Dogecoin sweepstakes

The broader quality pertains to a people enactment suit successful which Coinbase and its sweepstakes spouse Marden-Kane. The plaintiffs alleged that the speech directed users to bargain oregon merchantability $100 oregon much of DOGE to participate the sweepstakes portion hiding alternate ways to enactment successful the offer.

Plaintiffs besides alleged that the companies committed violations nether California’s False Advertising Law, Unfair Competition Law, and Consumer Legal Remedies Act.

The station Supreme Court denies Coinbase’s petition to compel arbitration successful Dogecoin sweepstakes dispute appeared archetypal connected CryptoSlate.

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