BCCA Grants Partial Stay Of Class Proceeding In Favour Of Arbitration

The British Columbia Court of Appeal's decision in Petty v. Niantic Inc.¹ demonstrates how a tailored arbitration agreement in a standard form contract can operate to stay a class proceeding in the context of a consumer relationship. The Court of Appeal upheld the application judge's contextual analysis, which found that an arbitration agreement in a standard form contract was neither unconscionable nor contrary to public policy.

You can also read our blog post on the companion case, Williams v. Amazon Inc.²

Factual background

The plaintiffs commenced a proposed class action on behalf of residents of British Columbia and Alberta who had purchased or otherwise paid directly or indirectly for "loot boxes" in video games from the defendants. The plaintiffs alleged that the loot boxes (a game of chance inside a video game where users could win virtual awards) were an unlicensed, illegal gaming system under Canadian law.