19-Nov-16 – An Illinois man will not, for now, get to press his claim in court that income tax return preparer Jackson Hewitt, and its partners American Express and Restaurant.com, illegally spammed his phone with text messages, after a federal judge ruled the agreement he signed with Jackson Hewitt also mandated all disputes over the contract be handled through arbitration.

On Wednesday, United States District Judge Philip Reinhard granted a request from Jackson Hewitt to compel arbitration in the case, rejecting the argument from plaintiff Phil Hollingsworth that the agreement’s arbitration provision should not apply.

“The agreement was offered to him and accepted by him, as part of the tax preparation services provided by Jackson Hewitt,” wrote Reinhard (left), “the terms [of which] require all claims, disputes, or controversies asserted individually or collectively against [Jackson Hewitt] to be arbitrated.”

According to Reinhard, it is up to the arbitrator to decide if Hollingsworth is bound by the arbitration provision of the contract he signed.

Hollingsworth, of Marengo, Illinois, about 60 miles northwest of Chicago, filed his lawsuit on March 11 against Jackson Hewitt, American Express, and Restaurant.com, claiming he received “unauthorized text messages” on his mobile phone in February that were advertisements for the three defendants. The ads offered him a gift certificate from Restaurant.com if he filed his income tax return through Jackson Hewitt and accepted his refund on an American Express credit card.

(Right) A text message received by Hollingsworth on February 17, offering a $25 gift certificate from Restaurant.com. The link in the message goes to Restaurant.com’s website.

The text messages continued, claims Hollingsworth, even after he texted back “STOP,” as instructed by the ads. He says the messages violated the Telephone Consumer Protection Act and he’s entitled to at least $500 and as much as $1,500 per violation.

While Hollingsworth acknowledges he provided his mobile phone number to Jackson Hewitt, he says he did not consent to receive the text messages. The arbitration agreement should not apply, he believes, as the agreement was issued through Jackson Hewitt’s financial services provider, Republic Bank & Trust, and furthermore should not apply to his claims against the other defendants.

All three defendants have denied any violation of law occurred and have told Judge Reinhard they’re prepared to argue the text messages are not advertisements and were not sent by them.

Restaurant.com awaits decision in another federal lawsuit

This could have been the second federal lawsuit the 350-employee Restaurant.com, located in Arlington Heights and owned by a River North resident, is currently defending. A decision is expected soon from a District Court judge in New Jersey in the penalty phase of a lawsuit over fine print on gift certificates the company sells.

Judge Michael Shipp decided not to hear oral arguments, scheduled for November 15, and will rule based on written arguments how much the company must pay.

Restaurant.com is owned by Dr. Kenneth Chessick, a lawyer who lives in Washoe County in Nevada and Marina City in Chicago. His wife, Ellen Chessick, is president of Marina Towers Condominium Association and is listed as vice president of Restaurant.com in a document filed with the Securities and Exchange Commission in 2012, though more recently, she has denied being an owner of the company. (Left) Ellen and Kenneth Chessick. Photo: NIU Today.