UNITEDSTATESDISTRICTCOURTSOUTHERNDISTRICT OF FLORIDAMIAMI DIVISIONCASENO. 15-CV-20353.DPGJOSEAGUIRRE,Plaintiff,DRAFTKINGS,INC.Defendant.DEFENDANT'SMOTION Ai\D MEMORANDUMOF LAWIN SUPPORTOF MOTIONTO COMPELARBITRATIONAND DISMISSPROCEEDINGSVS.Case 1:15-cv-20353-DPG Document 15 Entered on FLSD Docket 06/02/2015 Page 1 of 19TABLE OF CONTENTSI.INTRODUCTIONANDSUMMARYOF ARGUMENTil.FACTUAL BACKGROUNDA.Plaintiff s Use Of TheDraftKingsWebsiteAnd AgreementTo The TermsOfUse, IncludingIts ArbitrationProvision..3.DraftKingsHas Not WaivedIts RightToArbitrate.....................B.Plaintiff CannotAvoidHis AgreementTo Arbitrate...Page..,.22B.Disregarding His AgreementTo Arbitrate,PlaintiffImproperlyPursuedHisDispute In ThisCourt Eight Days AfterHe CreatedHis DraftKings4ccount............3III.ARGUMENT. 4A. PlaintiffMustArbitrateHisClaims Against DraftKingsOn AnIndividualBasis1.The WrittenArbitrationProvisionIs Valid.... 52 All Of Plaintiffs Claims Fall WithinTheScopeOf The ArbitrationProvision4,...,.7................ 8................91.The ArbitrationProvisionIs NotUnconscionable...........92 The RequirementTo ProceedOn An Individual Basis In ArbitrationIsEnforceable............... 11C.TheCourt ShouldDismiss TheComplaintAs All ClaimsAre Subject ToArbitration t2D.DraftKingsShouldBe AwardedIts Attomeys'FeesAnd ExpensesIncurred InEnforcingArbitration t3IV.CONCLUSION.... 14Case 1:15-cv-20353-DPG Document 15 Entered on FLSD Docket 06/02/2015 Page 2 of 19TABLEOF AUTHORITIESCasesAm.Express v. Italian ColorsRestaurant,133S. Ct.2304 (2013).......Cruzv. CingularWireless,LLC,648 F.3d 1205(l1th Cir. 2011)Curbelo v. AutonationBenefitsCo.,No.14-62736,2015V/L 667655(S.D.Fla.Feb.17, 2015).Dean \ltterReynolds, Inc. v. Byrd,470 U.S. 213 (198s)Fteja v. Facebook,Inc.,841 F. Supp.2d829(S.D.N.Y.2012)HemispherxBiopharma,Inc.v. JohannesburgConsol. Invs.,553 F.3d l3sl (11thCir. 2008)Ibrahim v. Morton'sRestaurant Grp,Inc.,No.04-20554,2005WL 6068544 (S.D.Fla.Mar. 16,2005).....IT StrategesGrp,Inc.v. AlldayConsultng Grp,LLC,975F. Supp.2d 1267(S.D. Fla.2013)Kozmav.HunterScottFin., LLC,No.09-80502-CIY,2010WL 724498(S.D.Fla.Feb.25,2010)Lambertv. Austin Ind.,s44F.3drt92(r1th Cir. 2008)...LexisNexisRiskSolutionsFL, Inc.v. Spegel,No. 14-80666,2014WL 3361910(S.D.Fla.July 9,2014)..,..Maldonadov. MqttressFirm, Inc.,No.13-292-T,2073WL 1760272 (M.D.Fla. April24,2013)..Manard v. Knology,Inc.,No.4:10-15-CDL,2010WL 2528320(M.D.Ga. June 18,2010).MosesH. ConeMem'lHosp. v. Mercury Const.Corp.,460 U.S.I (1983)....Paee(s)...11l,124,9,10, 1256,7,114.,.2,146l38555811Case 1:15-cv-20353-DPG Document 15 Entered on FLSD Docket 06/02/2015 Page 3 of 19Pendergastv. SprntNextel Corp.,691 F.3d 1224 (11th Cir. 2012)Perera v. H&RBlock EasternEnter., Inc.,9r4 F . Supp.2d 1284(S.D.Fla. 2012) ..Shearson/Am. Express,Inc. v. McMahon,482 U.S. 220(1987)Stolt-Nielsen v. AnimalfeedsInt'l Corp.,130S. Ct. 1758(2010).......Swift v. ZyngaGame Netuvork,Inc.,805 F. Supp. 2d904,912(N.D. Cal.2011).UntedStatesv. Faris,583 F.3d 7s6 (tlth Cir. 2009)Vernon v. Qwest Commc'nsIntern.,Inc.,857F. Supp.2d 1135(D. Colo.2012).Statutes9 U.S.C. $ 1...e u.s.c. $ 2....5,7,13I61 J5.10t2.6, 115lllCase 1:15-cv-20353-DPG Document 15 Entered on FLSD Docket 06/02/2015 Page 4 of 19MOTION AND MEMORANDUM OF LAWDefendantDraftKings, Inc. ("DraftKings")respectfullypetitions this Court,pursuant tothe FederalArbitrationAct("FAA")(9 U.S.C. $ l, et seq.),for an ordercompelling individualarbitrationof each of theclaimsraisedby PlaintiffJoseAguirre ("Plaintiff') in accordancewiththe terms of theparties'bindingarbitrationagreement.I.INTRODUCTIONANDSUMMARYOF ARGUMENTThis matterbelongsin front of an arbitrator, not a court,because theparties agreed toarbitrateany disputes arising out of their relationship. DraftKingsprovidescustomers,suchasPlaintiftwithan opportunityto enteronlinefantasy sportscontestsby registeringto useDraftKings'web-based service.As part of the login and registrationprocess,Plaintiffagreed toDraftKings'Termsof Use, through whichthepartiesagreedthatooanyandall dsputes"betweenthem wouldbe referredto binding,non-classarbitration beforethe American ArbitrationAssociation("AAA"). (Dent Decl.Ex. A (Termsof Use)at 4.) DraftKingsrequestedPlaintifftovoluntarilydismissthis lawsuitand pursue arbitration in accordancewith theTermsof Use,buthe refusedthis request.Accordingly, DraftKings is petitioningthis Courtto compelPlaintifftoarbitratethis disputeas thepartiesagreed.There is a strong policyin favor of enforcing arbitrationagreements;indeed, the SupremeCourt has ordered courtsto "rigorouslyenforceagreementsto arbitrate."Sltearson/Am. Express,Inc. v. McMahon,482U.S. 220,226 (1987);see also Cruzv.CingularWireless,LLC,648F.3d1205,1210(llth Cir. 2011)(the Federal Arbitration Act oomakes writtenagreementsto arbitratevalid,irrevocable, andenforceable").This policyis so strong that in certaincircumstances thecourtsof this districthaveordereda party who disregards a binding arbitration provision-asPlaintiffhas donehere-to pay the attomeys'feesand expensesassociatedwith bringingapetitionto compel. Seelbrahimv. Morton'sRestaurantGrp,.[zc.,No. 04-20554,2005 WLICase 1:15-cv-20353-DPG Document 15 Entered on FLSD Docket 06/02/2015 Page 5 of 196068544, at *2 (S.D.Fla.Mar. 16, 2005).Here, the parties'agreementexpressly providesthat aparty who fails to abideby the arbitration provisionmust pay "all attomeys'fees and expensesreasonablyincurred in enforcing thisAgreementto arbitrateand the Forumto whichthe partieshavehereinagreed,"makingsuchan award proper.(DentDecl.Ex. A (Termsof Use) at 5.)BecausePlaintiffhas failed to abideby the clear arbitration provision,requiringboththe Courtand DraftKings to needlesslyexpendresources,this Court shouldgrant thispetition,dismissPlaintiffs lawsuit,andrequire Plaintiffto reimburseDraftKings for the attomeys' fees andexpensesincurredto bringthis petition.il.FACTUAL BACKGROUNDA.Plaintiffls Use Of The DraftKingsWebsiteAnd Agreement To TheTerms Of Use,Includinglts Arbitration ProvisionPlaintifflslawsuitcentersaround his use of DraftKings'online fantasy sportswebsite,throughwhichPlaintiffallegeshe made an initial depositof $25to participatein onlinefantasysports contests. (Compl. 1J 31-32.)To use theDraftKingswebsiteandmake this deposit,Plaintiffwas first requiredto reviewandaccepttheTermsof Use thatgovern thewebsiteand theparties'relationship.The Termsof Use to whichPlaintiffagreedcontainedan arbitrationprovision,underwhichboth DraftKings and Plaintiffagreed thatany andall disputesbetweenthemwouldbe resolvedin small claims courtor binding,non-classarbitration, andthatany partyfailingto abideby the arbitrationprovisionwouldbearthe costsandattorneys' feesincurredtocompel compliancewith the arbitrationagreement:Anyandall disputes,claims or controversiesarisingoutof or relating to thisAgreement,thebreach thereof,or any use of the Website(includingallcommercial transactionsconductedthroughtheWebsite) ("Claims"),exceptforclaims filed in a small claims courtthat proceed on an individual (non-class, non-representative)basis, shallbe settledby bindingarbitration beforea singlearbitratorappointedby the American Arbitration Association ("AAA")inaccordancewith its then governingrulesand procedures[.]2Case 1:15-cv-20353-DPG Document 15 Entered on FLSD Docket 06/02/2015 Page 6 of 19**{