Justia Juvenile Law Opinion Summaries

Several minors were injured at trampoline parks operated by Sky Zone in Philadelphia. In each instance, only one parent signed a “Participation Agreement, Release and Assumption of the Risk” on behalf of their child, which included an arbitration provision waiving the right to sue in court. After the injuries, both the signing and non-signing parents, along with the injured minors, brought lawsuits seeking damages for the injuries sustained at the facilities.The Court of Common Pleas of Philadelphia County reviewed petitions by Sky Zone to compel arbitration and stay the litigation, relying on the signed agreements. The trial courts denied these petitions, finding that the agreements were enforceable only against the signing parent. The courts determined that a spouse does not have authority to act as the agent of the other simply by virtue of marriage, and Sky Zone had not provided evidence of agency. Additionally, the courts held that parents do not have the legal authority to waive a minor’s right to pursue personal injury claims or to bind a minor to an arbitration agreement that would require waiving the right to a judicial forum.The Superior Court of Pennsylvania affirmed the trial courts’ decisions, holding that neither the non-signing parents nor the minors were bound by the arbitration provisions. The Superior Court reasoned that agency cannot be inferred from family ties alone and that parents, as natural guardians, lack inherent authority to manage a minor’s property, including legal claims, without court approval.The Supreme Court of Pennsylvania reviewed the case and affirmed the Superior Court’s orders. The Court held that a parent who signs an arbitration agreement cannot bind a non-signing spouse or a minor child to its terms. Specifically, parents lack the authority to bind a minor to an agreement to arbitrate, as this would deprive the minor of judicial protections and oversight designed to safeguard their interests. View "Shultz v. Sky Zone, LLC" on Justia Law

K.F.C., age 11, signed up for a Snapchat account. Snapchat's terms specify that a person must be at least 13 to have an account. K.F.C. lied about her age. Before she turned 18, K.F.C. sued, alleging that Snapchat’s features amount to facial recognition, which violates the Illinois Biometric Privacy Act, K.F.C. acknowledges that she accepted Snapchat’s terms but denies that its arbitration clause binds her although she continued using Snapchat after turning 13.The Seventh Circuit affirmed the dismissal of the case. An arbitrator, not a court, must decide whether K.F.C.’s youth is a defense to the contract’s enforcement. While even the most sweeping delegation cannot send the contract-formation issue to the arbitrator, state law does not provide that agreements between adults and children are void but treats such agreements as voidable (capable of ratification), so the age of the contracting parties is a potential defense to enforcement. The Federal Arbitration Act provides that arbitration is enforceable to the extent any promise is enforceable as a matter of state law, 9 U.S.C. 2. A challenge to the validity (as opposed to the existence) of a contract goes to the arbitrator; K.F.C.’s arguments about her youth and public policy concern the contract’s validity, not its existence. View "K.F.C. v. Snap Inc." on Justia Law

The employers were formerly contributing members of the Teamsters Local Union No. 293 Pension Plan. In 2007-2008 each employer reached an agreement with the Plan to terminate its membership. They were required to pay, and have paid, “withdrawal liability” reflecting each employer’s share of unfunded, vested pension benefits under the Multiemployer Pension Plan Amendments Act, 29 U.S.C. 1381–1461. Under the Act, if the plan is terminated altogether by a “mass withdrawal” of the remaining members within three years, the earlier withdrawing members may be subject to additional “reallocation liability.” Disputes about the amount of such reallocation liability are subject to mandatory arbitration. The employers claim that a 2009 mass withdrawal was expedited to occur within the three-year period in order that they would be subject to reallocation liability. The Plan trustees sought more than $12 million in additional funds from the employers. The district court dismissed their suit for failure to complete arbitration. The Sixth Circuit affirmed. The Act requires that the claim of “sham” mass withdrawal be arbitrated. View "Knall Beverage, Inc. v. Teamsters Local Union No. 293 Pension Plan" on Justia Law