EBay Seller Not Honoring Contract

[cjw]

What is the name of your state (only U.S. law)? Maryland

I have been an Ebay buyer and seller for approximately 7 years and the increasing dishonesty from its users has me fed up and I'm prepared to file a lawsuit to resolve an issue.

The details are as follows: I tracked a lot of sports memorabilia for a week, ensuring I had the highest bid and successfully won the auction for only $70. The market value on the lot according to the industry price guides was well over 20x what I paid, and I stood to make a considerable profit. I received the email confirmation as the winning bidder, paid for the item using Paypal, and completed my end of the contract between buyer and seller.

3 days later I have record of the seller contacting me stating "I'm disappointed in what my lot sold for, I'm willing to offer a refund".

I responded that it is unfortunate that the item sold lower than expected and I can sympathize having had the same thing happen, but that I followed through on my agreement to buy and expected him to follow through on his end of the agreement.

I have since requested on 2 occasions for a confirmation that the item has shipped, with no answer. I know I can easily get my money back from Paypal, but I have not filed a dispute as it accomplishes nothing and lets the seller off the hook. I contacted Ebay and they sent out contact information to both parties. The seller is in Alabama and I left a polite message to return my call so we may resolve the issue.

I have all documentation and want to take additional steps to either get the item I paid for, or sue this seller to the point that I get the original purchase price, revenue lost from resale, all court fees, and hopefully stop this behavior.

This is an experienced seller who knows all about reserve prices, setting prices higher, etc. I know I am on a soapbox here to a degree, but I have all my points documented, and at least 2 recent instances documented from this seller backing out of sales or cheating other buyers when he did not like the final sale price.

Do I have a valid case? Thanks for your time.

 

[Mass_Shyster]

What is the name of your state (only U.S. law)? Maryland

I have been an Ebay buyer and seller for approximately 7 years and the increasing dishonesty from its users has me fed up and I'm prepared to file a lawsuit to resolve an issue.

The details are as follows: I tracked a lot of sports memorabilia for a week, ensuring I had the highest bid and successfully won the auction for only $70. The market value on the lot according to the industry price guides was well over 20x what I paid, and I stood to make a considerable profit. I received the email confirmation as the winning bidder, paid for the item using Paypal, and completed my end of the contract between buyer and seller.

3 days later I have record of the seller contacting me stating "I'm disappointed in what my lot sold for, I'm willing to offer a refund".

I responded that it is unfortunate that the item sold lower than expected and I can sympathize having had the same thing happen, but that I followed through on my agreement to buy and expected him to follow through on his end of the agreement.

I have since requested on 2 occasions for a confirmation that the item has shipped, with no answer. I know I can easily get my money back from Paypal, but I have not filed a dispute as it accomplishes nothing and lets the seller off the hook. I contacted Ebay and they sent out contact information to both parties. The seller is in Alabama and I left a polite message to return my call so we may resolve the issue.

I have all documentation and want to take additional steps to either get the item I paid for, or sue this seller to the point that I get the original purchase price, revenue lost from resale, all court fees, and hopefully stop this behavior.

This is an experienced seller who knows all about reserve prices, setting prices higher, etc. I know I am on a soapbox here to a degree, but I have all my points documented, and at least 2 recent instances documented from this seller backing out of sales or cheating other buyers when he did not like the final sale price.

Do I have a valid case? Thanks for your time.

From what you've written, seller is in breach of contract, and you can sue for the actual value of the goods. You may even win.

You will have to prove the value of the goods and you will have to prove liability on the part of the seller. You can argue that the value of the goods is $1400, and the seller can argue that the value is $70. The court will decide what the value is.

You may be able to sue (and win) in a Maryland Court. Whether MD has personal jurisdiction over an Alabama resident would depend on MD long arm statutes. Even if you win in MD, you may have a hard time collecting the judgment from an Alabama resident.

There would be no question of personal jurisdiction if you sue in an Alabama court. You would also have a better chance of collecting an Alabama judgment from an Alabama resident.

 

[JETX]

Do I have a valid case?

Depends on what 'case' you are referring to.

If you are interested in pursuing damages, you have no case since you have not suffered any damages. To have damages, you would have to purchase a comparable item (as close as possible), then sue over the difference between the 'contracted' price that was breached... and the price you actually had to pay for the comp item. Depending on the amounts involved, this could be heard in small claims.

If you are interested in forcing the sale as contracted, you would have to file a breach of contract suit and ask for 'specific performance'. Since it would be very easy for the seller to dispose (sell, 'lose', etc.) the property, I would suggest you include a request for a TRO requesting 'sequestration' (seizure) of the property in your lawsuit to prevent its 'disposal' prior to litigation. However, small claims issues are limited in most states to monetary claims only, so this type of litigation likely would not be subject to small claims (informal) courts.

As for jurisdiction, you can file your lawsuit in your state if you feel you could present a successful venue argument if he files a 'Motion to Dismiss for Lack of Subject Matter Jurisdiction' to try to force the litigation to his home state.

 

[justalayman]

I'm impressed JETX. That was an extremely informative post and you didn't yell at anybody once.

are you getting soft in your old age?

 

[JETX]

I'm impressed JETX. That was an extremely informative post and you didn't yell at anybody once.

are you getting soft in your old age?

Nope... Most of my 'tirades' are against the responses ("advice") given... not the OP. (Okay, sometimes against the OP when THEIR posts are just plain idiotic!!).

You will notice that the majority of the time I 'yell' or get pissed-off, it is NOT generally with the OP.... but is with idiot responses that are either flat out NOT correct.... or where someone gives inaccurate advice.

People come to this site for help for their legal issues.... and someone giving flat out STUPID or incorrect responses or 'guesses' is NOT help.

 

[Mass_Shyster]

I realize this is probably a stupid thing to do, but I'm going to have to disagree with this answer

If you are interested in pursuing damages, you have no case since you have not suffered any damages. To have damages, you would have to purchase a comparable item (as close as possible), then sue over the difference between the 'contracted' price that was breached... and the price you actually had to pay for the comp item. Depending on the amounts involved, this could be heard in small claims.

Buyer could seek reliance damages to put him/her back in the position he/she would have been in had the contract never taken place, or expectancy damages, to put him/her into post-contract position, giving him/her the benefit of the bargain. Seeking reliance damages would be foolish as those would be available through paypal.

If you are interested in forcing the sale as contracted, you would have to file a breach of contract suit and ask for 'specific performance'. Since it would be very easy for the seller to dispose (sell, 'lose', etc.) the property, I would suggest you include a request for a TRO requesting 'sequestration' (seizure) of the property in your lawsuit to prevent its 'disposal' prior to litigation. However, small claims issues are limited in most states to monetary claims only, so this type of litigation likely would not be subject to small claims (informal) courts.

Both specific performance and a temporary restraining order are forms on injunctive relief, available in equity and not in law. The first test for injunctive relief is "no adequate remedy at law". Since a dollar figure for damages is easily to calculate, there IS an adequate remedy at law, so injunctive relief would not be appropriate.

As for jurisdiction, you can file your lawsuit in your state if you feel you could present a successful venue argument if he files a 'Motion to Dismiss for Lack of Subject Matter Jurisdiction' to try to force the litigation to his home state.

Any state would have subject matter jurisdiction over the controversy. The defendant would have to file a motion for lack of personal jurisdiction to attempt to force litigation to his home state

Bring on the tirade

 

[justalayman]

without getting wrapped up in this, I believe the only valid point you have is the jurisdiction argument and a big point as to why a remedy in law is not appropriate is this:

Since a dollar figure for damages is easily to calculate,

evidenced by the fact the card, at an open auction, sold for $70 proves, yes proves the value of the card to be no more than $70. Speculative value is not enforceable.

 

[cjw]

Depends on what 'case' you are referring to.

If you are interested in pursuing damages, you have no case since you have not suffered any damages. To have damages, you would have to purchase a comparable item (as close as possible), then sue over the difference between the 'contracted' price that was breached... and the price you actually had to pay for the comp item. Depending on the amounts involved, this could be heard in small claims.

If you are interested in forcing the sale as contracted, you would have to file a breach of contract suit and ask for 'specific performance'. Since it would be very easy for the seller to dispose (sell, 'lose', etc.) the property, I would suggest you include a request for a TRO requesting 'sequestration' (seizure) of the property in your lawsuit to prevent its 'disposal' prior to litigation. However, small claims issues are limited in most states to monetary claims only, so this type of litigation likely would not be subject to small claims (informal) courts.

As for jurisdiction, you can file your lawsuit in your state if you feel you could present a successful venue argument if he files a 'Motion to Dismiss for Lack of Subject Matter Jurisdiction' to try to force the litigation to his home state.

I am very much interested in forcing the sale to be completed. Do I file the TRO in Maryland or Alabama? Will one carry more weight than another?

 

[cjw]

I was unclear if I had a successful venue argument as you mentioned. thanks again.

 

[FlyingRon]

I've never heard of an Ebay auction resulting in specific performance (in the US). Of course, there's always a first time.

 

[cjw]

without getting wrapped up in this, I believe the only valid point you have is the jurisdiction argument and a big point as to why a remedy in law is not appropriate is this:



evidenced by the fact the card, at an open auction, sold for $70 proves, yes proves the value of the card to be no more than $70. Speculative value is not enforceable.

The market prices guides that I would use to defend my argument that the items are valued at $1400, are published based upon extensive market sales research and have been the expert in this market for 20+ years. Would that still be considered speculative?

 

[cjw]

You will have to prove the value of the goods and you will have to prove liability on the part of the seller. You can argue that the value of the goods is $1400, and the seller can argue that the value is $70. The court will decide what the value is.

As posters on this site are much more knowledgeable in regards to case precedence, are there any similar cases that would lend strength to my argument of value? Do courts typically lean a certain way when determining value in such instances?

 

[cjw]

Nope... Most of my 'tirades' are against the responses ("advice") given... not the OP. (Okay, sometimes against the OP when THEIR posts are just plain idiotic!!).

You will notice that the majority of the time I 'yell' or get pissed-off, it is NOT generally with the OP.... but is with idiot responses that are either flat out NOT correct.... or where someone gives inaccurate advice.

People come to this site for help for their legal issues.... and someone giving flat out STUPID or incorrect responses or 'guesses' is NOT help.

OK at the risk of becoming an idiotic poster...I realize this is a forum for essentially small claims type cases, but is there any weight to this possibly being a case of fraud on the part of the seller? By contacting me days after the transaction is completed stating he is unhappy with the final sale price, were his actions fraudulent, especially since he still has my money at this point and has not delivered the purchased items? I'm really not out to stick it to this seller, I just want what I won and paid for fairly.

 

[justalayman]

The market prices guides that I would use to defend my argument that the items are valued at $1400, are published based upon extensive market sales research and have been the expert in this market for 20+ years. Would that still be considered speculative?

yep.

the fact that you purchased it for $70 makes it worth $70. If others thought it worth more, they would have bid more.

this is what is known as market value which is the only fair and true method to establish a value of an item such as this.


so, can you get whomever published that book to pay you $1400 for the card? If not, it is merely a book.


value of any given item varies continually. What is worth $1 today may be worth $500 tomorrow or just as easily 1 cent. It is what somebody is actually willing to pay for an item that gives it any value. If nobody is willing to pay for something, it has no value.

You paid $70 for something against other bidders. That does a pretty good job of establishing a true market value.

 

[JETX]

I realize this is probably a stupid thing to do, but I'm going to have to disagree with this answer

Gee... why did I expect this from YOU???? (See other post in this thread about 'tirades'.

Buyer could seek reliance damages to put him/her back in the position he/she would have been in had the contract never taken place, or expectancy damages, to put him/her into post-contract position, giving him/her the benefit of the bargain. Seeking reliance damages would be foolish as those would be available through paypal.

'Reliance damages'?? Your IGNORANCE is showing!!
In order for 'reliance damages' to apply, the OP would have to show 'economic harm'. Which hasn't occurred. Even at best, the OP might argue that IF the seller had completed the contract (provided the 'goods') and IF the buyer then was able to sell the goods (unknown) for some profit (benefit), which is unknown... spurious at best.

Since there aren't ANY damages... what is to 'rely' on.
And since there is NO evidence that the seller actually ACCEPTED the funds and until such time as the seller accepts them, the OP (buyer) is already at the position as "had the contract never taken place".
'Expectancy damages'?? See above. You can't recover for what you MIGHT have been damaged.

Both specific performance and a temporary restraining order are forms on injunctive relief, available in equity and not in law. The first test for injunctive relief is "no adequate remedy at law". Since a dollar figure for damages is easily to calculate, there IS an adequate remedy at law, so injunctive relief would not be appropriate.

Clearly, you don't understand what the 'relief' is. The relief is to prevent the seller from disposing (selling, etc.) the item to someone else and thereby removing it from the ability to comply with an order of the court to force compliance with the terms of the contract (specific performance).

Any state would have subject matter jurisdiction over the controversy. The defendant would have to file a motion for lack of personal jurisdiction to attempt to force litigation to his home state

And of course, that is CRAP. Any defendant can claim lack of jurisdiction, especially if he can show that the hearing court has no jurisdiction in the cause or action... OR the defendant.