In: Economics
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1–4. Spotlight on AOL—Common Law. AOL, LLC, mistakenly made public the personal information of 650,000 of its members. The members filed a suit, alleging violations of California law. AOL asked the court to dismiss the suit on the basis of a “forum-selection” clause in its member agreement that designates Virginia courts as the place where member disputes will be tried. Under a decision of the United States Supreme Court, a forum-selection clause is unenforceable “if enforcement would contravene a strong public policy of the forum in which suit is brought.” California has declared in other cases that the AOL clause contravenes a strong public policy. If the court applies the doctrine of stare decisis, will it dismiss the suit? Explain. [Doe 1 v. AOL, LLC, 552 F.3d 1077 (9th Cir. 2009)] (See Common Law Tradition.)
If the court applies the doctrine of Stare Decisis, it will use the IRAC method for legal reasoning.
The IRAC (Issue, Rule, Analysis, Conclusion) application to our case
Issue- The issue here is whether the forum-selection clause is unenforceable in our case. In other words, if enforcement would contravene a strong public policy of the forum in which suit is brought. The suit is bought in California. So, does California have a strong public policy on this matter?
Rule- California public policy against waivers of class action remedies and rights under California's consumer protection statutes.
Analysis- The crux of the matter is to decide if the clause from AOL means only the Virginia State court or Federal courts in Virginia too. This is because if the clause means only Virginia state court, then class action suit cant be brought there. If so, it violates California public policy favoring consumer class actions and renders the forum selection clause unenforceable. But if the clause means federal courts in virginia too, then it does not violate california public policy and is enforceable.
The precedent here are the cases under california public policy. If the state courts in the forum selection means that a particular suit can't be bought there, then it cant be enforced.
Conclusion- I believe the court will not dismiss the suit since AOL clause does mean only state courts. This will mean the precedent will require the court to hear the plaintiffs.