ILNews

eBay suit presents issue of first impression

Back to TopCommentsE-mailPrintBookmark and Share

In an issue of first impression in Indiana - and possibly in the United States - the Indiana Court of Appeals addressed specific jurisdiction questions in a suit filed by sellers on the online auction site, eBay.

In Richard and Marlene Attaway v. Llexcyiss Omega and D. Dale York, No. 11A01-0712-CV-608, the Attaways brought an interlocutory appeal of the trial court's denial of their motion to dismiss a suit filed by Llexcyiss Omega and Dale York. They claimed the trial court erred in denying the motion to dismiss for lack of personal jurisdiction, that Clay County wasn't a proper venue, and eBay and PayPal user agreements prohibited the parties from litigating the dispute.

The Attaways, who live in Idaho, purchased a Porsche on eBay using PayPal from Llexcyiss Omega and York, who are in Indiana. The Attaways arranged for a transportation company to deliver the car to Iowa. Once they received it, they filed a claim with PayPal for a refund because they said the car wasn't as described on eBay. PayPal denied the refund, but the Attaways managed to have their credit card company remove the charges and rescind payment.

Llexcyiss Omega and York filed suit in small claims court in Clay County, demanding $5,900 in damages.

The Court of Appeals determined the Attaways weren't subject to general jurisdiction in Indiana and had to decide whether they were subject to specific jurisdiction. This brings up the issue of first impression because the appellate court couldn't find any cases in which an eBay seller had sued a buyer for rescission of payment after the buyer picked up the item in the seller's state.

The Court of Appeals looked to similar cases involving buyers filing suits in U.S. District Courts in Michigan, California, and New Jersey, and a case out of New York state courts to rule the Attaways' actions surrounding the purchase tip the scale in favor of personal jurisdiction.

The Indiana sellers filed suit against the Attaways after they took delivery of the car and rescinded payment. The Attaways were able to see the car was in Indiana before buying it and agreed to pick up the vehicle. During the course of the transaction, there was more than just a single online purchase to satisfy the personal jurisdiction requirements of the federal due process clause, wrote Judge Terry Crone. The appellate court affirmed the dismissal of the Attaways' motion to dismiss.

"In weighing the interests of the states, it is certainly within the bounds of fair play and substantial justice to allow Indiana to exercise personal jurisdiction over individuals who have entered into a contract with an Indiana resident for the purchase of property located in Indiana, have removed that property from the state of Indiana, and then rescinded payment," he wrote.

The Court of Appeals also affirmed Clay County was a proper venue and that there was no language in the PayPal user agreement and eBay dispute resolution procedures posted online to suggest the online dispute resolution process is a buyer or seller's sole recourse in the event of a dispute.

ADVERTISEMENT

  • follow up to Attaway vs Omega article
    Just a quick follow up to this article which I just recently stumbled upon. I reside in Idaho, not Iowa (which may or may not make any difference as to access to visibility to car prior to purchase, apparently did not).My husband Richard was not part of the lawsuit. It was all on me so his name should be taken off of all documentation entirely. Also, whereabouts of the vehicle after returning to Indiana is undetermined as well as my attorney did a "no show" at a final hearing leaving me with a FTA warrant against me. A Complaint is to be filed with the Indiana State Bar and possibly legal recourse for malpractice. The last time we spoke, his license was suspended and I've not been able to make further contact with him.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. The practitioners and judges who hail E-filing as the Saviour of the West need to contain their respective excitements. E-filing is federal court requires the practitioner to cram his motion practice into pigeonholes created by IT people. Compound motions or those seeking alternative relief are effectively barred, unless the practitioner wants to receive a tart note from some functionary admonishing about the "problem". E-filing is just another method by which courts and judges transfer their burden to practitioners, who are the really the only powerless components of the system. Of COURSE it is easier for the court to require all of its imput to conform to certain formats, but this imposition does NOT improve the quality of the practice of law and does NOT improve the ability of the practitioner to advocate for his client or to fashion pleadings that exactly conform to his client's best interests. And we should be very wary of the disingenuous pablum about the costs. The courts will find a way to stick it to the practitioner. Lake County is a VERY good example of this rapaciousness. Any one who does not believe this is invited to review the various special fees that system imposes upon practitioners- as practitioners- and upon each case ON TOP of the court costs normal in every case manually filed. Jurisprudence according to Aldous Huxley.

  2. Any attorneys who practice in federal court should be able to say the same as I can ... efiling is great. I have been doing it in fed court since it started way back. Pacer has its drawbacks, but the ability to hit an e-docket and pull up anything and everything onscreen is a huge plus for a litigator, eps the sole practitioner, who lacks a filing clerk and the paralegal support of large firms. Were I an Indiana attorney I would welcome this great step forward.

  3. Can we get full disclosure on lobbyist's payments to legislatures such as Mr Buck? AS long as there are idiots that are disrespectful of neighbors and intent on shooting fireworks every night, some kind of regulations are needed.

  4. I am the mother of the child in this case. My silence on the matter was due to the fact that I filed, both in Illinois and Indiana, child support cases. I even filed supporting documentation with the Indiana family law court. Not sure whether this information was provided to the court of appeals or not. Wish the case was done before moving to Indiana, because no matter what, there is NO WAY the state of Illinois would have allowed an appeal on a child support case!

  5. "No one is safe when the Legislature is in session."

ADVERTISEMENT