Dialogue Consulting Pty Ltd v Instagram, Inc

Dialogue Consulting Pty Ltd, an Australian company, brought claims against Instagram, Inc. and related entities over alleged breaches of their terms of service. The respondents sought to stay the proceedings on the basis of an arbitration agreement that allegedly covered the claims. Dialogue opposed the stay, arguing that the arbitration agreement was invalid or inapplicable. The central issues before the court were whether there was a valid arbitration agreement, the proper law of the agreement, the scope of the arbitration clause, and whether Dialogue had waived its right to arbitrate. The court found that there was an arbitration agreement formed through a "sign-in wrap" agreement, but that Dialogue had waived its right to arbitrate by bringing the claims in court. The court applied Californian state law to determine that Dialogue had waived its right to arbitrate under section 7(5) of the International Arbitration Act 1974 (Cth). As a result, the court refused to stay the proceedings and dismissed the respondents' application. The court also dismissed Dialogue's cross-application for declarations and other relief. The court ordered that the costs of the interlocutory applications be costs in the cause.