Coatney v. Ancestry.comDNA, LLC

Dist. Ct. did not err in denying defendant’s motion to compel arbitration on plaintiffs’ lawsuit under circumstances, where: (1) plaintiffs’ guardians activated DNA test kits on behalf of plaintiffs-minor children; (2) registered users of defendant’s website was required to first agree to arbitration clause to resolve disputes; and (3) when another entity acquired defendant, plaintiffs alleged in instant lawsuit that their privacy rights were violated by disclosing their genetic information to third-party in violation of Illinois Genetic Information Privacy Act. Dist. Ct. could properly find that arbitration clause agreed to by guardians did not apply to plaintiffs, as plaintiffs did not activate their own DNA test kit or otherwise independently engage in defendant’s services. Moreover, there was no allegation that plaintiffs had actually accessed their guardian’s Ancestry accounts or their DNA test results. Ct of Appeals also rejected defendant’s claim that: (1) plaintiffs were closely related parties for purposes of being bound by arbitration clause; and (2) concept of direct benefit estoppel applied, where there was no allegation that plaintiffs had accessed defendant’s analysis of plaintiffs' DNA.