In 2019, a Georgia high school teacher named Donelan Andrews won $10,000 for an upcoming vacation by only reading the fine language on her travel insurance policy. Squaremouth, the company, published the policy, including a paragraph that contained a secret contest to encourage customers to read the whole contract. Readers of the entire contract learned that they could win $10,000 just by sending an email to the corporation; it was the fine print. Andrews, who always reads her contracts, found this secret contest and was the first to email them. The prize was hers!
Reading the fine print can occasionally lead to unforeseen benefits, as Andrew’s case shows. But how many people really read the fine print? I know that most lawyers like myself do, because its part of our profession. But most lay people don’t read their contracts before signing (which provides many lawyers with job security). Or just like Florida widower, Jeffrey Piccolo, they casually skim over the fine print found in the terms and conditions box of an online user consent form before entering a website.
Piccolo is trying to sue Disney; his complaint against the Magic Kingdom centers on a wrongful death claim arising from a fatal allergic reaction at a Disney restaurant that claimed the life of his wife. Piccolo sued Disney, claiming negligence since their restaurant had informed his wife that the dinner she ordered was free from nuts and dairy. Sadly, it was not.
For their part, Disney is now seeking to have the lawsuit dismissed and deny Piccolo a jury trial in favor of invoking the arbitration clause. How can Disney do that? Because, Disney argues, when Piccolo signed up to stream Disney videos with a Disney+ trial in 2019, he waived his rights to a jury trial. Disney agrees that although the conflict has nothing to do with the streaming service itself, but remains firm that this agreement requires that any conflicts be resolved by arbitration rather than court litigation. Should Disney win, Piccolo will forfeit his ability to present his case before a plausibly more sympathetic jury. Arbitration is probably going to have less-than-positive results for him.
Piccolo’s legal team has branded Disney’s position “outrageously unreasonable,” and “absurd.” A decision from the court is pending.
The lessons to be learned from Andrew’s $10,000 win, and gained from Piccolo’s unfortunate experiences:
- Examine the fine print. Agreements, including terms of service, can include clauses affecting your legal rights in unexpected areas. For example, agreeing to arbitration restrictions can prevent you from suing in court—even in cases unrelated to the service.
- Arbitration-related clauses: these often hidden elements could show up in your contract. Sometimes they insist that differences be settled outside of court, therefore limiting your choices for a damages action or a jury trial.
- Understanding Scale and Influence: the agreements you sign may be more general than you initially realize. As the Disney decision demonstrates, the policies of a Disney+ streaming membership could be used to dismiss a claim about an occurrence in an unrelated environment, say a theme park.
- As necessary, get legal guidance. If you are unsure about the far-reaching legal impact and effect of the terms, you are committing to get legal feedback from a qualified attorney before you sign.
“Call before you sign” is my professional ‘mantra’ that I repeat time and time again. When it comes to a contract, contact a skilled contract attorney so that you understand the legal ramifications of your agreement. This is especially true in the real estate and lending arena, which includes, but is not limited to: leases, deeds, purchase agreements, land contracts, buy-sell agreements, mortgages, secured transactions, business, and personal loan agreements. Protect your legal rights in unexpected situations.
