July 28, 2020

Square Wins Dismissal in Service Agreement Case

Munger, Tolles & Olson secured a dismissal with prejudice for Square, Inc. in a lawsuit alleging its terms of service violated the Unruh Act.

The Complaint alleged that Square engaged in occupational discrimination against “bankruptcy” attorneys because Square’s terms of service agreement requires users to certify that they would not accept payments in connection with “bankruptcy attorneys or collection agencies engaged in the collection of debt.”

On July 28, 2020, Judge Ethan P. Shulman in the San Francisco County Superior Court dismissed with prejudice plaintiff’s complaint, finding he failed to plead intentional discrimination based on the plaintiff’s purported personal characteristic of being a “bankruptcy attorney,” and that Square’s restriction was supported by legitimate business reasons.   

This victory follows another victory for Square in a terms of service case in January 2020.

Jonathan H. Blavin, Rose Leda Ehler, Max Rosen, and Maggie Thompson represented Square in this case.