Starbucks wins gift card arbitration

Starbucks Corp. won an arbitration case against a customer who claimed the firm wrongly refused him $1.70 from his gift card at a West Hollywood location.

Starbucks wants Los Angeles Superior Court Judge Yvette M. Palazuelos to approve arbitrator Ben Himmelstein's May 20 verdict dismissing plaintiff Robert Paskey's claims.

Himmelstein's judgement, which Paskey doesn't challenge, hasn't been confirmed or heard.

Paskey sued Starbucks in March 2020 in Los Angeles Superior Court, demanding compensatory and punitive damages and a court order to redeem gift cards with less than $10.

Paskey, 38, sued as a class-action. His court documents said there are "several" Starbucks gift cards with balances under $10.

Paskey stated the gift card was handed to him by a third party and he didn't read the back or visit the Starbucks website.