I recently ran into trouble with eBay and paypal, I had only sold 67 items yet had 43 cases filed against me over the last year requesting refunds due to various things. I listed all issues in my ads, i was honest, and i held 100% feedback despite all past cases. Basically i was held hostage by any buyer to satisfy them beyond the profit margin of the item sold originally. I was loosing money. My sells to case ratio was 1 case filed for every 1.6 sales.

Some of my items ranged $10 to $40. But some ranged $120 to 900. What triggered my vengeance was I had 2 open cases one for $157 another for $115 in the awaiting buyers response status for over 5 days. I had another case filed against me for $240, making my Paypal balance negative $669 and some change. That was the last straw for me.

I spoke to my brother-in-law who is a corporate attorney in NY about what i could do. He informed me i can file an "Economic Tort" claiming "Tortious Interference" with the courts. I filed and won an "Injunction" against Paypal that demands them to release any past, present and future holds on any funds held with-in my account.

Here is where the real victory is, Paypal cannot release holds implemented by eBay. But to comply with the injunction they credit the account what ever the negative balance is to restore the account to current (pre-hold) status. Why is this a victory? Well if you happen to resolve a case in your favor that had a hold associated with it, your account has those funds credited to you by Paypal to comply with the injunction. Paypal to credit your account has to issue what they call "Fee Reversals and One-Time Payments) to your account. They can't ask for those funds back, so because of the injunction you get credited funds every time a case is filed against you.

You have to call them each time a case is filed and funds get held to remind them of the injunction. But i have had 11 cases with held funds credited to my account totaling just under $1,600. Now don't get me wrong i had to do quite a bit of work to present my case for the injunction, there are minimum requirements that must be met before a judge will even hear the case. And the cost is about 5 times what it is to file a small claims case, But it was worth it for me. It might be worth it for others as well.


Some info on "Injunctions and Torts"


An injunction is an equitable remedy in the form of a court order that requires a party to do or refrain from doing specific acts. A party that fails to comply with an injunction faces criminal or civil penalties and may have to pay damages or accept sanctions. In some cases, breaches of injunctions are considered serious criminal offenses that merit arrest and possible prison sentences.

Rationale for injunctions:

This injunctive power to restore the status quo ante; that is, to make whole again someone whose rights have been violated, is essential to the concept of fairness (equity). For example, money damages would be of scant benefit to a land owner who wished simply to prevent someone from repeatedly trespassing on his land.

Common reasons for injunctions:

*domestic violence
*bullying (in some cases)
*physical or sexual abuse
*the wrongful transfer of real property, also called fraudulent conveyance
*the disclosure of sensitive information in line with the Official Secrets Act 1989 (UK only)
*trade dress infringement
*trademark infringement
*copyright infringement
*patent infringement
*trade secret disclosure
*tortious interference of contract
*criminal contempt
*civil contempt
*unauthorized practice of law