Douglas v. United States District Court For The Central District Of California

495 F.3d 1062 (9th Cir. 2007)

Facts

P contracted for long distance telephone service with America Online. D subsequently acquired this business from AOL and continued to provide telephone service to AOL's former customers. D then added four provisions to the service contract: (1) additional service charges; (2) a class action waiver; (3) an arbitration clause; and (4) a choice-of-law provision. D posted the revised contract on its website, but P alleges that D never notified him that the contract had changed. Unaware of the new terms, P continued using D's services for four years. After becoming aware of the additional charges, P filed a class action lawsuit in district court, charging D with violations of the Federal Communications Act, breach of contract and violations of various California consumer protection statutes. D moved to compel arbitration based on the modified contract, and the district court granted the motion. Because the Federal Arbitration Act, 9 U.S.C. § 16, does not authorize interlocutory appeals of a district court order compelling arbitration, P petitioned for a writ of mandamus.