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Weil Secures Appellate Victory for eBay

Weil obtained a major appellate victory for eBay Inc. on January 29, 2013 when the California Court of Appeal upheld the trial court’s June 2011 ruling in favor of eBay in a case involving eBay’s right to suspend user accounts. Having previously dismissed eight other causes of action brought against eBay, the trial court dismissed the final claim for intentional interference with prospective economic advantage. The Court of Appeal affirmed that decision in Ruins-CA & Genesta v. eBay Inc., G045540 (2013).

At issue was whether eBay could be held liable under different state-law theories for suspending the plaintiffs’ user account after eBay received third-party reports that the plaintiffs were misrepresenting goods offered for sale on eBay’s site. The trial court held that plaintiffs, sellers of vintage textiles and fabrics, failed to state any cognizable claims against eBay and, in doing so, ruled that the eBay User Agreement provided eBay the legal right to suspend the plaintiffs’ account. The trial court also rejected the plaintiffs’ allegation that eBay violated California antitrust laws by prohibiting the plaintiffs from continuing to do business on eBay.

On appeal, the Court of Appeal held that the plaintiffs failed to state any legally cognizable claim against eBay for intentional interference with prospective economic advantage and specifically rejected plaintiffs’ allegations that eBay engaged in anticompetitive conduct that resulted in any tortious acts of interference.

The Weil litigation team was led by partner Christopher Cox in Silicon Valley and counsel Mark Fiore in New York. Counsel Gregory Hull in Silicon Valley assisted the team.

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