New York-based federal judge Jed Rakoff has sent a major antitrust price-fixing lawsuit against Uber Technologies Inc. into arbitration, albeit reluctantly, and dismissed the case from court.
But not before first devoting pages of his opinion in Meyer v. Kalanick, 15-cv-9796, to fiercely criticizing the U.S. Court of Appeals for the Second Circuit, and the federal judiciary as a whole, for repeatedly upholding U.S. companies’ use of mandatory arbitration clauses that consumers assent to via internet-based customer agreements that appear on screens. Rakoff said such terms of service agreements “totally coerce” the consumer into waiving his or her constitutional right to a jury trial.
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