Noll v. eBay, Inc.

309 F.R.D. 593, 92 Fed. R. Serv. 3d 1150, 2015 U.S. Dist. LEXIS 123147, 2015 WL 5442647
CourtDistrict Court, N.D. California
DecidedSeptember 15, 2015
DocketCase No. 5:11-cv-04585-EJD
StatusPublished
Cited by9 cases

This text of 309 F.R.D. 593 (Noll v. eBay, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Noll v. eBay, Inc., 309 F.R.D. 593, 92 Fed. R. Serv. 3d 1150, 2015 U.S. Dist. LEXIS 123147, 2015 WL 5442647 (N.D. Cal. 2015).

Opinion

ORDER GRANTING MOTION FOR FINAL APPROVAL OF CLASS ACTION; GRANTING MOTION FOR ATTORNEYS’ FEES AND COSTS

EDWARD J. DAVILA, United States District Judge

Plaintiffs Richard Noll (“Noll”) and Rhythm Motor Sports, LLC (“Rhythm”) (collectively, “Plaintiffs”) bring this is a putative class action against Defendant eBay, Inc., (“Defendant”) regarding the recurring fees for the Good ’Til Cancelled (“GTC”) listings. Plaintiffs are eBay sellers who alleged that eBay failed to adequately disclose that the listing fees for GTC listings would be charged on a recurring, monthly basis. See Dkt. No. 140 at 3. Presently before the Court are Plaintiffs’ Motion for Final Approval of Class Action, and Motion for Attorneys’ Fees and Costs. See Dkt. Nos. 134,140.

Having reviewed the Settlement Agreement and the parties’ and objectors’ arguments and papers, the Motion for Final Approval of Class Action is GRANTED, and the Motion for Attorneys’ Fees and Costs is [598]*598GRANTED IN PART AND DENIED IN PART for the reasons set forth below.

I. BACKGROUND

A. Factual and Procedural Background

i. eBay’s Marketplaces

Listings on eBay.com are governed by Fees Schedules depending on the nature of the listing, referenced as: (1) Core, (2) Motors, and (3) Stores. eBay “Core” is eBay’s overall marketplace on which sellers can list items for sale. eBay “Motors” consists of web pages on eBay dedicated to automotive vehicles, parts, and accessories. eBay Stores allows sellers to display all of their listed items in a single online “Store.” See Dkt. No. 140-1 (“Verges Deck”) ¶ 8.

ii. Before the Start of the Class Period

Before September 16, 2008, the commencement of the Class Period, the GTC listing duration was available only on the Stores marketplace, and not for Core or Motors listings. See Dkt. No. 130 at 5. During this time, the Stores Fees Schedule contained the following table that explained that all fees for GTC Listings would be charged on a recurring basis every 30 days:

[[Image here]]

The Stores Fees Schedule contained this table at all times from September 16, 2008 through March 29, 2010. See Verges Deck ¶ 9; see also Dkt. No. 130 at 6.

iii. eBay Introduces GTC to Core and Motors

On September 16, 2008, eBay made the GTC duration available for listings on Core and Motors. See Dkt. No. 130 at 6. According to Plaintiffs, the Fees Schedules for these listings did not state that GTC listing fees would recur, and the table of “Listing Upgrade Fees” looked like this:

[599]*599See Verges Deel. ¶ 10.

iv. Revisions to the Fees Schedules

On December 16, 2008, eBay revised the Core Fees Schedule (but not the Motors Fees Schedule) by adding:

Good ’Til Cancelled renews automatically every 30 days until the item sells or you end the listing. Insertion Fees are charged every 30 day period.

See id-¶ 11.

eBay added this to the Motors and Stores Fees Schedules on March 30, 2010. Id. Finally, on June 19, 2012, (after this case was filed), eBay added to all three Fees Schedules the following disclosure:

Good ’Til Cancelled listings renew automatically every 30 days until all of the items sell, you end the listing, or the listing violates an eBay policy. Insertion fees and optional feature fees are charged every 30-day period.

Id. The parties agree that listings initiated by eBay users after June 19, 2012 are not at issue in this case. See Dkt. No. 130 at 8.

v. Procedural Background

Plaintiffs alleged that eBay was required, but failed, to clearly and unequivocally state that both Insertion Fees and Optional Feature Fees would be charged every 30 days for GTC Listings placed between September 16, 2008 and June 19, 2012.1 See Dkt. No. 130 at 3. During the Class Period, eBay added the phrase “Insertion fees are charged every 30 day period” to the end of some of the relevant fees schedules. See id. On June 20, 2012 — nine months after the Complaint was filed — eBay added the phrase “Insertion fees and optional feature fees are charged every 30-day period” to all of the operative Fees Schedules. See id. Plaintiffs allege that GTC connotes an indefinite listing duration and that the contract and eBay’s disclosures did not permit eBay to charge [600]*600recurring listing fees every 30 days for certain GTC listings. See id.

Plaintiffs seek to recover certain Insertion and Optional Feature Pees incurred after the initial 30-day listing period (the “Disputed Fees”) for some listings placed between September 16, 2008, and June 19, 2012. See id.

In the Original Complaint, Plaintiffs asserted claims for (1) breach of contract; (2) violation of the UCL, Cal. Bus. & Prof.Code § 17200; (3) violations of the false advertising law, Cal. Bus. & Prof.Code § 17500 et seq. (“FAL”); (4) violations of the CLRA, Cal. Civ.Code § 1750 et seq.; (5) unjust enrichment/common law restitution; (6) fraud and deceit; and (7) declaratory judgment. See Dkt. No. 1. On April 23, 2012, the Court denied eBay’s motion to dismiss the claims for (1) breach of contract; (2) unjust enrichment; and (3) declaratory judgment. See Dkt. No. 57. The Court granted the motion to dismiss all claims against the entities eBay Europe and eBay International with prejudice and the (1) fraud; (2) UCL; (3) FAL; and (4) CLRA claims without prejudice and with leave to amend. See id.

After additional litigation, Plaintiffs filed them Consolidated Second Amended Class Action Complaint (“SAC”) on October 2, 2012, alleging and re-alleging further facts in support of (1) breach of contract; (2) UCL; (3) FAL; (4) Cal. Bus. & Prof.Code § 17600 (automatic renewal/continuous service); (5) CLRA; (6) unjust enrichment; (7) fraud; and (8) declaratory judgment claims. Dkt. No. 90. On October 17, 2012, eBay moved to dismiss the “fraud based” counts two, three, five, and seven of the SAC. See Dkt. No. 91. On May 30, 2013, the Court granted eBay’s motion to dismiss those claims with leave to amend. See Dkt. No. 101. The Court dismissed with prejudice the automatic renewal/continuous service count of the SAC. See id.

On July 1, 2013, Plaintiffs filed their Consolidated Third Amended Complaint (“TAC”). Dkt. No. 102. In the TAC, Plaintiffs assert causes of action for (1) breach of contract; (2) UCL violations; (3) FAL violations; (4) violations of Business and Professions Code section 17600 (automatic renewal/continuous service); (5) CLRA violations; (6) unjust enrichment; (7) fraud; and (8) declaratory judgment. See id.

On October 3, 2014, Plaintiffs filed their motion for class certification. Dkt. No. 118. On January 15, 2015, Plaintiff filed a joint motion to certify class and preliminarily approve settlement. Dkt. No. 130.

B. The Settlement Agreement

After two mediations before the Honorable Dickran Tevrizian and the Honorable Carl J.

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309 F.R.D. 593, 92 Fed. R. Serv. 3d 1150, 2015 U.S. Dist. LEXIS 123147, 2015 WL 5442647, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noll-v-ebay-inc-cand-2015.