- Term
- 2023-2024
Coinbase v. Suski
Coinbase v. Suski was an arbitration case concerning whether Coinbase — a cryptocurrency exchange platform — misled users to believe they needed to trade $100 worth of cryptocurrency to enter a sweepstakes. Coinbase’s user agreement included an arbitration clause that potentially conflicted with the sweepstakes rules — and Coinbase wanted an arbiter to decide whether the sweepstakes contract modified the user agreement rather than a court. Arbitration clauses are common in standard form contracts that consumers have little to no ability to negotiate, and can make it harder for consumers and employees to get remedies when their rights are violated or corporations mislead them. Arbitration clauses effectively prevent a person from suing in court and instead subject them to an arbitrator hired by a corporation to resolve a dispute.
In a 9-0 decision on May 23, 2024, the Supreme Court ruled that courts, rather than arbiters, must decide which contract governs when two agreed-upon contracts contradict each other with regard to arbitration.
