Let the [eBay] Seller Beware!
04/21/08
Online auction sellers beware. Last week we received a ruling from the Circuit Court of Putnam County finding in favor of a plaintiff who filed suit against an online seller at an eBay auction.
On June 9, 2006, the seller, a West Virginia resident, advertised for sale on eBay four tickets to the 2007 NASCAR race at Bristol Motor Speedway with all future renewal rights for the four season tickerts. The buyer, a resident of Louisiana, placed a winning bid in the amount of $4,227.77.
Afterwards, the buyer attempted to consummate the sale by placing the full purchase price in escrow, with an attorney acting as the middle man. Despite promising to do so during June-July 2006, the seller never completed the transaction. The buyer then contacted the track and learned that the ownership of the tickets could not be confirmed as the seller.
The buyer then filed a Petition for Breach of Contract and Damages in the 19th Judicial Court in the Parish of East Baton Rouge, Louisiana, and sought judgment in the amount of $10,000, interest, and reasonable attorney's fees. The Court entered a judgment in favor of the buyer in the amount of $10,000 with interest, $3,348.75 in attorney's fees, and litigation costs in the amount of $365.
Citing as authority the United States Constitution's Full Faith and Credit Clause, Art. IV, Section 1, and the West Virginia Uniform Enforcement of Foreign Judgments Act, W.Va. Code § 55-14-2, we were able to enforce in the Circuit Court of Putnam County, on behalf of the buyer, the judgment of the Louisiana court.
So what does this mean?
Well, several important considerations can be taken from this matter.
First, every state has a long-arm statute that provides courts with the right to exercise jurisdiction over individuals who transact businss in the state, or who cause injury or damage through an act or omission in the state. Cyber-transactions can be interpreted as having been conducted in multiple states, not just the state of the seller.
Second, because of the preceding consideration, a buyer can institute a proceeding in his or her state, thus giving "home field advantage." This creates an expensive proposition if a seller desire to defend against the buyer's claims in the buyer's state.
Third, almost every state has adopted a statute similar to, if not exactly the same as, the West Virginia Uniform Enforcement of Foreign Judgments Act. The Act is liberally construed to permit West Virginia courts to enforce judgments obtained in other courts. A seller can expeditiously, and fairly cheaply, obtain an order in West Virginia enforcing the foreign judgment.
Fourth, and perhaps most importantly, online sales constitute a significant portion of modern-day transactions. With the frequency of such transactions at an all-time high, it is more and more likely that courts will try to go out of their way to protect purchasers from being swindled in fraudulent transactions or being deprived of the benefit of the bargain for which they have negotiated.
In the end, it is important to realize that online sales transactions, even under the auspice of an auction, are very real, and very enforceable in the event a jilted buyer decides to seek retribution. Need proof. . . in our case, a $4,300 bid turned into an expensive $14,000 judgment.
Topics
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Let the [eBay] Seller Beware!
New Law on Criminal Background Checks
Regulating Viatical Settlements
Restraints in Nursing Homes
TLK2UL8R
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