Dec 1, 2014

Rudder v. Microsoft Corp., 1999 - Case Summary

Rudder v. Microsoft Corp., 1999 CanLII 14923 (ON SC)





















Facts

R clicks “I Agree” in an agreement with M – R wanted to bring the resulting action in Ontario, but the “I Agree” included a clause that can only sue in the state of Washington “jurisdiction forum selection clause”. R says forum selection clause is fine print, need to draw attention to major clauses.

Issues

What is jurisdiction for action?

Analysis

Electronic contracts can be binding, will be treated slightly different but must be afforded the sanctity that is given to any agreement in writing.

Holding

M wins – jurisdiction is Washington. Not fine print, easy enough to flip through the contract. Scroll mechanism used to read through the member agreement = flipping pages. Claim dismissed

Ratio

Courts will support e-commerce where reasonable. No specific notice was needed if you want to have any business with online contracts, you have to allow these types of contract to support business efficacy.