In a decisive win for eBay Inc., Weil, Gotshal & Manges obtained dismissal of the final claims in a breach of contract action that had been pending in California state court for three years. The court granted dismissal of the action, Ruins & Genesta v. eBay, Case No. 30-2009 00124542, Superior Court of the State of California for the County of Orange, on June 21, 2011.

eBay suspended plaintiff’s user account following reports from third parties that plaintiff, who sold vintage textiles and fabrics through an eBay user account, was misrepresenting the goods offered for sale. Plaintiff sought to hold eBay liable for suspending the user account under various legal theories, including breach of contract, breach of covenant of good faith and fair dealing, unfair competition, trade libel and disparagement, intentional interference with contractual relations, intentional interference with prospective business advantage, and violations of California antitrust laws.

Although plaintiff was granted five opportunities to amend the allegations in the complaint, the court found that plaintiff failed to state any cognizable claims against eBay. Further, the court held that the eBay User Agreement provided eBay the legal right to suspend the plaintiff’s account in light of the reports submitted against the plaintiff in order to provide a safe marketplace for its users. The court also rejected plaintiff’s claim that eBay violated California antitrust laws by prohibiting the plaintiff from continuing to do business on eBay.

The Weil litigation team included partner Christopher Cox and counsel Gregory Hull in Silicon Valley and partner Bruce Colbath and associate Mark Fiore in New York.