How to BUST a Coinbase arbitration clause by Attorney Steve®

https://www.vondranlegal.com/crypto-lawyer - We are now over 700 legal education videos. Make sure to SUBSCRIBE so you can be SMARTER THAN THE AVERAGE BEAR!! Thank you for supporting EQUAL ACCESS to Justice!!

COINBASE ARBITRATION AGREEMENTS - ARE THEY ENFORCEABLE? CAN YOU BUST THEM?

When faced with a contract containing an arbitration clause, a party may be able to challenge the clause as being procedurally and/or substantively unconscionable. This blog will discuss the different ways to attack an arbitration clause as being procedurally and/or substantively unconscionable. It may not always work, but this is the process if you want to try to have your case heard in State of Federal court as opposed to a private arbitration setting. This is general legal information only and not legal advice.

Procedural Unconscionability:

Procedural unconscionability is the concept that a contract is procedurally unconscionable when the terms of the contract are imposed without providing the other party with a meaningful opportunity to understand or reject the terms. A court may determine that a contract is procedurally unconscionable if there is evidence that the party signing the contract was not provided with enough time to review and understand the contract, or if the contract was forced upon the party signing the contract.

In order to attack an arbitration clause as being procedurally unconscionable, a party may be able to show that the other party did not have a meaningful opportunity to understand the arbitration clause before signing the contract. This could be shown, for example, if the party signing the contract did not have enough time to read the entire contract, or if the party signing the contract did not receive a copy of the contract before signing.

Substantive Unconscionability:

Substantive unconscionability is the concept that a contract is substantively unconscionable when the terms of the contract are so one-sided or oppressive as to be unconscionable. A court may determine that a contract is substantively unconscionable if there is evidence that the terms of the contract are overly oppressive or if the party signing the contract did not have the same bargaining power as the party who drafted the contract.

In order to attack an arbitration clause as being substantively unconscionable, a party may be able to show that the terms of the arbitration clause are overly oppressive or that the terms of the arbitration clause are unequal when compared to the other terms of the contract. This could be shown, for example, if the arbitration clause requires the party signing the contract to pay all of the costs associated with the arbitration process or if the arbitration clause gives the party who drafted the contract an unfair advantage in the arbitration process.

Conclusion:

In conclusion, a party may be able to attack an arbitration clause as being procedurally and/or substantively unconscionable. To attack an arbitration clause as being procedurally unconscionable, a party may be able to show that the other party did not have a meaningful opportunity to understand the arbitration clause before signing the contract. To attack an arbitration clause as being substantively unconscionable, a party may be able to show that the terms of the arbitration clause are overly oppressive or that the terms of the arbitration clause are unequal when compared to the other terms of the contract.

VONDRAN LEGAL CRYPTO VIDEOS & RESOURCES

1. Bored Ape Sued: https://youtu.be/VquL8xJFxSQ

2. Coinbase case in Supreme Court (document): https://www.supremecourt.gov/DocketPDF/22/22-105/232231/20220729160525276_Coinbase%20Joint%20Cert%20Petition%207-29-22%20Final.pdf

3. Coinbase sued over lost crypto: https://youtu.be/G6PwJ8sAVNs

4. Kardashian Crypto influencer dispute with SEC: https://youtu.be/eH03tJMy64w

5. SEC vs. RIPPLE overview: https://youtu.be/NAcki4y2R9s

6. Federal Arbitration Act: https://en.wikipedia.org/wiki/Federal_Arbitration_Act

7. American Arbitration Association ("AAA") Consumer Arbitration Rules: https://www.adr.org/sites/default/files/Commercial_Rules-Web.pdf