Daniel v. Ebay, Inc.

CourtDistrict Court, District of Columbia
DecidedJuly 26, 2018
DocketCivil Action No. 2015-1294
StatusPublished

This text of Daniel v. Ebay, Inc. (Daniel v. Ebay, Inc.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daniel v. Ebay, Inc., (D.D.C. 2018).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

) PATRICK DANIEL, ) ) Plaintiff, ) v. ) ) EBAY, INC., et. al., ) Civil Action No. 15-1294 (EGS) ) Defendants. ) )

MEMORANDUM OPINON AND ORDER

Plaintiff Patrick Daniel (“Mr. Daniel”), an attorney

proceeding pro se, brings suit against eBay, Inc. (“eBay”) and

individual eBay seller Jack Ly (“Mr. Ly”)(also known as David

Kennedy). Mr. Daniel brings several claims against both

defendants, including “breach of contract, fraud, collusion,

conspiracy, failure to monitor business and its agents, failure

to supervise business and its sellers, agency, unjust

enrichment, redhibition, theft by deception, theft by

conversion, unfair and deceptive trade practices, and violations

of [unspecified] laws, statutes, and/or regulations designed for

the safety of consumers.” Compl., ECF No. 1 ¶ 13. Mr. Daniel’s

claims all arise from his purchase of an allegedly counterfeit

watch from Mr. Ly through eBay’s online marketplace. Arguing

that Mr. Daniel had agreed to submit to arbitration, eBay filed

a motion to compel arbitration and stay this litigation. Def.’s

1 Mot. to Arb., ECF Nos. 6, 9. 1 Pending before the Court are Mr.

Daniel’s objections to Magistrate Judge G. Michael Harvey’s

Report and Recommendation (“R&R”), which recommends that the

Court grant eBay’s motion to compel arbitration and stay

litigation. See R&R, ECF No. 15.

Upon consideration of the R&R, Mr. Daniel’s objections,

eBay’s response to those objections, eBay’s motion to compel

arbitration, the responses and replies thereto, and the relevant

law, the Court declines to adopt Magistrate Judge Harvey’s R&R

and DENIES eBay’s motion to compel arbitration and stay the

litigation pending before the Court.

I. Background

Mr. Daniel does not appear to object to Magistrate Judge

Harvey’s recitation of the facts. See Pl.’s Objections, ECF No.

17. To briefly summarize, Mr. Daniel bought what he thought was

an “authentic” Audemars Piguet Royal Offshore Watch from Mr. Ly,

a registered eBay seller, via eBay’s online marketplace on July

9, 2015. Compl., ECF No. 1 ¶¶ 4-6, 8. The watch was allegedly

worth $75,000. Id. On July 14, 2015, Mr. Daniel learned that the

watch was counterfeit, not “authentic” as marketed. Id. ¶¶ 7, 8.

Upon learning the watch was counterfeit, Mr. Daniel contacted

1 eBay’s motion to compel was filed as docket entry number 6, but eBay filed an amended memorandum in support of its motion to compel as docket entry number 9.

2 Mr. Ly and arranged a meeting to return the watch, but Mr. Ly

did not appear. Id. ¶ 10. Mr. Daniel notified eBay, but it

allegedly “refused” to provide him with Mr. Ly’s contact

information or refund his money. Id. ¶ 9. Within a month, Mr.

Daniel sued eBay and Mr. Ly for breach of contract, fraud, and

unjust enrichment, among several other charges. See id. ¶ 13.

eBay contends that Mr. Daniel is required to arbitrate his

claims against the company pursuant to various iterations of its

“User Agreements.” See Def.’s Mot. to Arb., ECF No. 9; R&R, ECF

No. 15 at 3-6. When Mr. Daniel registered as an eBay user in

March 1999, he was required to accept the 1999 User Agreement by

clicking “I accept” on an online form. Long Decl., ECF No. 6-2

¶¶ 3-12. The 1999 User Agreement did not contain an arbitration

clause, but provided that eBay may “amend this Agreement at any

time by posting the amended terms on our site.” Long Decl., ECF

No. 6-2 ¶ 13; 1999 User Agreement (“U.A.”), ECF No. 6-2 at 13.

Pursuant to that “change-in-terms” provision, eBay amended

its User Agreement to include an arbitration clause in August

2012. Long Decl., ECF No. 6-2 ¶ 14; 2 2012 U.A., ECF No. 6-2 at

22-29. The 2012 User Agreement stated that users and eBay agree

that “any and all disputes or claims that have arisen or may

arise between [the user] and eBay shall be resolved exclusively

2 Paragraph 14 of the Long Declaration appears to be incomplete and paragraph 15 is missing. See Long Decl., ECF No. 6-2.

3 through final and binding arbitration, rather than in court.”

2012 U.A., ECF No. 6-2 at 27. The User Agreement allowed users

to “opt out” of the arbitration provision by mailing eBay a

written opt-out notice within a certain amount of time. Id. at

28. According to eBay, Mr. Daniel did not “opt out.” Long Decl.,

ECF No. 6-2 ¶ 17.

In June 2015, eBay amended its User Agreement again. Id. ¶

18; 2015 U.A., ECF No. 6-2 at 31-40. This version of the User

Agreement was in effect when Mr. Daniel purchased the

counterfeit watch in July 2015. Long Decl., ECF No. 6-2 ¶ 18.

The 2015 User Agreement contained an arbitration provision

practically identical to the 2012 version:

[The user] and eBay each agree that any and all disputes or claims that have arisen or may arise between [the user] and eBay relating in any way to or arising out of this or previous versions of the User Agreement, [the user’s] use of or access to eBay’s Services shall be resolved exclusively through final and binding arbitration, rather than in court . . . . The Federal Arbitration Act governs the interpretation and enforcement of this Agreement to Arbitrate.

2015 U.A., ECF No. 6-2 at 37.

Mr. Daniel denies receiving notification of either amended

User Agreements. Daniel Aff., ECF No. 17 at Ex. 2 ¶¶ 2, 3 (“At

no time have I received an email [or message] from eBay

notifying me of a proposed compulsory arbitration provision.”).

eBay responds, stating that Mr. Daniel was notified of the 2015

4 User Agreement via an email sent to his registered email

address. Long Decl., ECF No. 6-2 ¶ 19; see also Form Email with

2015 U.A., ECF No. 6-2 at 42-43.

II. Standards of Review

A. Objections to a Magistrate Judge’s Report and Recommendation

Pursuant to Federal Rule of Civil Procedure 72(b), once a

magistrate judge has entered a recommended disposition, a party

may file specific written objections. The district court “must

determine de novo any part of the magistrate judge’s disposition

that has been properly objected to,” and “may accept, reject or

modify the recommended disposition.” Fed. R. Civ. P. 72(b)(3).

Proper objections “shall specifically identify the portions of

the proposed findings and recommendations to which objection is

made and the basis for objection.” Local Civ. R. 72.3(b). “As

numerous courts have held, objections which merely rehash an

argument presented to and considered by the magistrate judge are

not ‘properly objected to’ and are therefore not entitled to de

novo review.” Shurtleff v. U.S. Envtl. Prot. Agency, 991 F.

Supp. 2d 1, 8 (D.D.C. 2013) (quoting Morgan v. Astrue, Case No.

08–2133, 2009 WL 3541001, at *3 (E.D. Pa. Oct. 30, 2009)

(collecting cases)). Likewise, a court need not consider cursory

objections made only in a footnote. Hutchins v. District of

Columbia, 188 F.3d 531, 539 n.3 (D.C. Cir. 1999); see also

5 Potter v. District of Columbia,

Related

Dean Witter Reynolds Inc. v. Byrd
470 U.S. 213 (Supreme Court, 1985)
First Options of Chicago, Inc. v. Kaplan
514 U.S. 938 (Supreme Court, 1995)
Green Tree Financial Corp.-Alabama v. Randolph
531 U.S. 79 (Supreme Court, 2000)
Hutchins, Tiana v. DC
188 F.3d 531 (D.C. Circuit, 1999)
Potter v. District of Columbia
558 F.3d 542 (D.C. Circuit, 2009)
Geico v. Valentine Fetisoff
958 F.2d 1137 (D.C. Circuit, 1992)
In Re Conseco Finance Servicing Corp.
19 S.W.3d 562 (Court of Appeals of Texas, 2000)
Aikens v. Shalala
956 F. Supp. 14 (District of Columbia, 1997)
Marsh v. First USA Bank, N.A.
103 F. Supp. 2d 909 (N.D. Texas, 2000)
FIA Card Services, N.A. v. Weaver
62 So. 3d 709 (Supreme Court of Louisiana, 2011)
Ellsworth v. American Arbitration Ass'n
2006 UT 77 (Utah Supreme Court, 2006)
Nolan v. Mabray
51 So. 3d 665 (Supreme Court of Louisiana, 2010)
McCoy v. Blue Cross and Blue Shield of Utah
2001 UT 31 (Utah Supreme Court, 2001)
Bybee v. Abdulla
2008 UT 35 (Utah Supreme Court, 2008)
Shurtleff v. United States Environmental Protection Agency
991 F. Supp. 2d 1 (District of Columbia, 2013)
Aneke v. American Express Travel Related Services, Inc.
841 F. Supp. 2d 368 (District of Columbia, 2012)

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