Caspi v. Microsoft Network

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Caspi v. Microsoft Network
Court Superior Court of New Jersey, Appellate Division
Citation 323 N.J. Super. 118, 732 A.2d 528 (1999)
Date decided 1999

Relevant Facts

The plaintiffs complained that the defendants were guilty of breach of contract, common law fraud, and consumer fraud because they had “rolled over” MSN membership into more expensive plans. The defendants moved to dismiss the complaint based upon a forum selection clause that each user must have clicked upon entering into the MSN subscription. The user was forced to click “I Agree” button to terms stating that “This agreement is governed by the laws of the State of Washington…and you consent to the exclusive jurisdiction and venue of courts in King County…”


Procedural History

Trial court granted defendants’ motion to dismiss the complaint on the ground that the forum selection clause in the contract called for claims to be litigated elsewhere. Plaintiff appeals.


Issues

Whether a forum clause which requires a computer user to click “I Agree” to certain terms constitutes a contract.


Holding/Decision

Affirmed. No jurisdiction.


ReasoningWhen agreeing to a forum selection clause is required in order to use software, and this clause contains adequate clarity and the meaning is plain, then it is a substantial agreement to which the parties are bound.