Michael Savetsky v. Pre-Paid Legal Services, Inc.

Filing 58

ORDER requesting supplemental briefing regarding motion to compel arbitration 40 . Opening brief due no later than June 5, 2015, responsive brief due no later than June 12, 2015, LegalShield may file a reply no later than June 19, 2015. Motion Hearing currently set for March 29, 2015 is vacated and reset for June 26, 2015 at 10:00 AM in Courtroom 1, 17th Floor, San Francisco. Signed by Judge Samuel Conti on May 22, 2015. (sclc2, COURT STAFF) (Filed on 5/22/2015)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA

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MICHAEL SAVETSKY, individually and ) Case No. 14-03514 SC
on behalf of all others similarly )
situated,
) ORDER RE: SUPPLEMENTAL
) BRIEFING
Plaintiff,
)
)
v.
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PRE-PAID LEGAL SERVICES, INC.
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d/b/a LegalShield,
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Defendant.
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)

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For the Northern District of California

United States District Court

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Now before the Court is Defendant LegalShield's1 motion to

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compel Plaintiff Michael Savetsky to arbitrate his claims in this

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putative consumer class action.

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is now fully briefed, ECF Nos. 53 ("Opp'n"), 57 ("Reply"), however,

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because the parties have overlooked an important issue, the Court

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hereby ORDERS supplemental briefing.

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///

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ECF Nos. 40 ("Mot.").

The motion

Defendant is actually named Pre-Paid Legal Services, Inc., but
does business as LegalShield. For simplicity the Court will refer
to Defendant as LegalShield.

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The Court previously denied a motion to compel arbitration

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under LegalShield's membership agreement, finding that Savetsky

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never assented to the arbitration provision contained in that

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agreement.

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denied that motion, LegalShield discovered that even prior to

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becoming a member, Savetsky signed up to sell LegalShield

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memberships as a "sales associate."

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LegalShield contends Savetsky entered into an "associate agreement"

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containing a separate and enforceable arbitration provision.

United States District Court

For the Northern District of California

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ECF No. 33 ("Prior Order") at 14.

After the Court

In becoming a sales associate,

See

Pinson Decl. Ex. A ("Associate Agreement") at 6.
The parties devote much of their briefing to the question of

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whether the Associate Agreement is unconscionable as a matter of

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California law.

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Elsewhere in their submissions, the parties also rely on other

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points of California contract law.

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(arguing assent, fraud, and duress with reliance on California

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law); Opp'n at 9-10 (discussing the application of the California

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parol evidence rule).

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very first line of the arbitration clause that is at the heart of

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this motion, which states that "[t]he Associate Agreement and

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Policies and Procedures," which contain the arbitration provision,

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"will be governed by and construed in accordance with the laws of

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the State of Oklahoma."

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(emphasis added).

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See Mot. at 19-21; Opp'n at 14-25; Reply at 7-13.

See, e.g., Mot. at 16-19

Yet the parties apparently overlooked the

ECF No. 42 ("Pinson Decl.") at 6, ¶ 23

Accordingly, the Court hereby ORDERS the parties to submit

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supplemental briefs regarding the choice of law clause, its

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enforceability, and its applicability to this motion.

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shall take place according to the following schedule:

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Briefing

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

No later than Friday, June 5, 2015, LegalShield shall

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file an opening brief of no more than ten (10) pages

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confined to these issues.

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

No later than Friday, June 12, 2015, Savetsky shall file

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a responsive brief of no more than ten (10) pages

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confined to these issues.

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

No later than Friday, June 19, 2015, LegalShield may file

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a reply of no more than five (5) pages confined to the

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issues raised in its opening and Savetsky's responsive
briefs.

United States District Court

For the Northern District of California

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

The hearing currently set for May 29, 2015 is hereby

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VACATED, and the Court instead sets a hearing for Friday,

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June 26, 2015 at 10:00 AM in Courtroom 1, 17th Floor, San

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Francisco Court House.

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IT IS SO ORDERED.

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Dated: May 22, 2015
UNITED STATES DISTRICT JUDGE

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