What Can We Learn From a Streaming Subscription? Understanding the Legal Impact of Disney’s Arbitration Dispute

In October of 2023, Kanokporn Tangsuan, her husband Jeffrey Piccolo, and Piccolo’s mother dined at Raglan Road Irish Pub in Disney Springs, part of the Walt Disney World resort in Orlando. Allegedly, the family chose the restaurant believing it would have proper safeguards against serving dairy and nuts to Tangsuan, who was VERY allergic. Despite multiple guarantees by the waiter and self-administering an Epi-Pen, Tangsuan died from “anaphylaxis due to elevated levels of dairy and nut in her system.”

Oy vey.

Piccolo sued Walt Disney Parks and Resorts for wrongful death. Because he signed up for a one-month trial of the streaming service Disney+ in 2019, which requires trial users to arbitrate all disputes with the company, Disney is trying to get the $50K lawsuit thrown out of court and sent to arbitration.

A man after my own heart, Piccolo’s lawyer called Disney’s argument “preposterous!” and stated that barring folks’ rights to a jury trial based on signing up for a Disney+ free trial “is so outrageously unreasonable and unfair as to shock the judicial conscience.” I want that printed on my t-shirt!

But What Can We Learn From This Micky Mouse Dispute?

We can talk all about arbitration versus litigation. Let’s break it down:

Litigation:

• Litigation is when one finds themselves in court with lawyers, and the judge (or maybe a jury) decides the fate of the parties.

Arbitration:

• Arbitration is an alternative to litigation. Parties present their argument to a neutral decision maker, an arbitrator, who has the authority to:
  • Hear evidence
  • Weigh arguments
  • Render a binding decision on the parties.

This is different from mediation, where the mediator helps the parties reach an agreement. The arbitrator’s finding is final—similar to a judge without the formalities of a court system.

Why Do Companies Force Arbitration? 

• Cost-Efficiency: Arbitration is A LOT less expensive than litigation because it involves fewer procedural hurdles and streamlined processes.
• Speed: Arbitration can be MUCH faster, often resolving disputes more quickly than court cases, which can notoriously drag on for years.
• Privacy: Arbitration proceedings are typically private, unlike court cases, which are a matter of public record.
• Flexibility: Arbitration allows parties to tailor the procedure to their needs compared to the rigid court system.

The Downside of Arbitration for Consumers

If you had a juicy case against a big company, threatening court action might force them to settle due to:

• The cost of defending their action.
• The reputation damage associated with public hearings.

But if you signed away your right to go to court, all disputes would go through a hushed and rushed arbitration, making it more likely that the company will take their chances with arbitration to your detriment.

Conclusion: Arbitration vs Litigation

So there you have it: arbitration vs litigation and why arbitration is shoved down our throats in all these click-accept signatures. We also learn that this blog presents both sides of the argument. #journalism

In a response to the lawsuit, Disney stated:

“We are deeply saddened by the family’s loss and understand their grief. Given that this restaurant is neither owned nor operated by Disney, we are merely defending ourselves against the plaintiff’s attorney’s attempt to include us in their lawsuit against the restaurant.”

Hmmmm, interesting…more to come…