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Weil Secures Significant Victory for eBay

In a complete endorsement of eBay Inc.’s right under its User Agreement to protect its website from sellers’ fraudulent activities, a California state trial court granted summary judgment in eBay’s favor in a lawsuit brought by a former seller who was suspended from the website. The court dismissed all claims against eBay brought by plaintiff Griffith Suisse Luxury Group arising from its suspension following reports that Griffith was infringing the intellectual property rights of numerous brand owners and for numerous other violations of the eBay User Agreement.

Granting eBay’s motion, the court held that Griffith “was bound by the User Agreement at all times,” and its suspension “was allowed by, and done pursuant to, the User Agreement.” The court emphasized that various provisions of the User Agreement “make clear that eBay may indefinitely suspend or terminate a membership if it suspects or believes that a user has breached any portion of the User Agreement.” The court added: “The complaints from intellectual property rights holders about Plaintiff’s account as well as Plaintiff’s violation of eBay policies were sufficient to establish such suspicion and belief and justify the indefinite suspension and/or termination of Plaintiff’s account.”

The case is Griffith Suisse Luxury Group v. eBay, Inc., Superior Court of California, County of Santa Clara Case No. 1-08-CV-124107.

The Weil team included counsel Mark Fiore in New York. Also working on the team were associates Jevechius Bernardoni and Bambo Obaro in Silicon Valley, and Sabrina Perelman, Jessica Costa, and Robert Jerry in New York.

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