Disney purport that Disney+ terms and conditions prevent wrongful lawsuit being brought

News has broken that Disney is attempting to have a wrongful death lawsuit dismissed. The law suit was brought against them by a widower whose wife died as a result of an allergic reaction after eating at one of the restaurants situated within Disney World Resort in Florida. In a bizarre turn of events, Disney has stated that this claim should be dismissed and decided by an arbitrator due to terms agreed to several years ago when the widower signed up to a Disney+ trial.

In October 2023, Dr Kanokporn Tangsuan died after eating at the Raglan Road Irish Pub within the Florida resort. Despite Dr Tangsuan making the restaurant staff aware on numerous occasions of her severe dairy and nut allergies and assurances that these could be accommodated, Tangusan sadly suffered a fatal allergic reaction.

Tangsuan’s widow, Jeffrey Piccolo, filed a wrongful death law suit against Walt Disney Worlds and Resorts for damages exceeding $50,000, claiming the waiting staff were negligent.

Despite the tragic events, Disney’s response to the claim has made headlines when their legal team claimed that the case ought to be dismissed and settled out of court. Their reasoning was based on the fact that Piccolo had agreed to the company’s “terms of use” when he signed up to a free trial of Disney+ in 2019, and again when he purchased tickets to the park in 2023. These terms contained a dispute resolution clause which stated that any disputes brought against the company, (and affiliate companies including Walt Disney Parks and Resorts), were to be settled out of court via a method called arbitration.

Piccolo’s lawyers have called Disney’s argument “surreal” and stated that “the notion that the terms agreed to by a consumer when creating a Disney+ free trial account would forever bar that consumer’s right to a jury trial in any dispute… is so outrageously unreasonable and unfair.” A hearing has been listed for 2 October to consider Piccolo’s claim and Disney’s response.

What is arbitration and why choose this?

Arbitration is a method of Alternative Dispute Resolution (“ADR”) and is an alternative to settling disputes via litigation through the courts. Arbitration takes place outside of court and upon the agreement of all parties, the dispute is submitted to an independent third party known as an arbitrator who will make a decision which is binding on all parties.

The benefit of arbitration is that it can be a far more time and cost-effective method of settling disputes compared to going through the courts. Parties involved can also benefit from the confidentiality arbitration proceedings offer, meaning that any settlement terms and details of a claim are heard in private as opposed to the open forum of a court room.

What can be taken away from this news?

Whilst Disney’s legal team’s interpretation and application of their terms and conditions may seem far-fetched to many, this serves as an important reminder to check dispute resolution clauses within contracts before commencing and incurring the costs of legal proceedings. Although these proceedings are being played out in America, the need to be conscious of ADR provisions and the terms of any contractual document you are signing is relevant around the world. Many commercial contracts provide for ADR methods, including mediation, to be exhausted prior to the commencement of any legal proceedings.