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Nager v. Tesla Motors, Inc.

United States District Court for the District of Kansas

September 3, 2019, Decided; September 3, 2019, Filed

Case No. 19-2382-JAR

Opinion

ORDER

Plaintiffs Paul and Debbie Nager, after purchasing a Model S automobile from defendant Tesla Motors, Inc. ("Tesla"), filed this lawsuit alleging negligence, fraud, and violations of the Kansas Consumer Protection Act.1 Defendant has filed a motion to stay the case and compel arbitration, pursuant to the terms and conditions of the Motor Vehicle Order Agreement ("the Agreement") (ECF No. 19). As set forth in more detail below, defendant's motion is retained under advisement pending expedited discovery limited to the issue of whether plaintiffs agreed to the arbitration clause in the Agreement.

Background

Plaintiffs allege that, on December 14, 2018, they purchased the Model S, which was shipped from Chicago to Kansas City. Plaintiffs further allege that they later learned, upon inspection, there was damage to the vehicle, in addition to an inadequate paint job. On July 12, 2019, [*2]  defendant removed this case from the District Court of Johnson County, Kansas, and defendant's state-court motion to stay the case and compel arbitration was deemed to be filed in this court.2 Defendant contends arbitration is mandated by the section of the Agreement titled "Agreement to Arbitrate," which reads, in relevant part:

Agreement to Arbitrate. Please carefully read this provision, which applies to any dispute between you and Tesla, Inc. and its affiliates, (together, "Tesla").

If you have a concern or dispute, please send a written notice describing it and your desired resolution to resolutions@tesla.com.

If not resolved within 60 days, you agree that any dispute arising out of or relating to any aspect of the relationship between you and Tesla will not be decided by a judge or jury but instead by a single arbitrator in an arbitration administered by the American Arbitration Association (AAA) under its Consumer Arbitration Rules. This includes claims arising before this Agreement, such as claims related to statements about our products.

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2019 U.S. Dist. LEXIS 149360 *; 2019 WL 4168808

PAUL NAGER and DEBBIE NAGER, Plaintiffs, v. TESLA MOTORS, INC, a/k/a Tesla, Inc., Defendant.

CORE TERMS

arbitration, electronically, website, discovery, Customer