This guest-post by Drew is a followup to our “How to get your money back from PayPal“. Drew is currently fighting to have his funds released by PayPal. You can read Drew’s first entry here: Getting my money back from PayPal
After I sent PayPal the formal letter asking for them to release my funds, etc., Paypal called me this morning, and said So What, give us documents between my vendors and their wholesalers. I said it’s not legal, so on and so on, and informed the person I will go ahead and start the legal process, first by filing all the complaints.
These are the basic steps I took to file my lawsuit against PayPal:
- Write up a brief, 2-3 pages in length, outlining the case being filed, points of interests, legal issues, damages, rectification being sought. Once all completed, make 4-5 copies of it all.
- Go to county courthouse, or federal courthouse. Go to Clerk of Court’s office
- File lawsuit brief in small claims, or other appropriate offices.
- Have clerk of court notarize some of the copies, to deliver a copy to the defendant or their legal representation. In Paypal’s case, 1 copy to legal dept in California, 1 copy to legal representative of the state residing in (in my case, Overland Park Kansas, even though I am in Iowa)
- For Iowa, the filing fee is $35. Federal court, filing fee is $85.
Filing fee’s for each jurisdiction are different. - Although not required, make Lawsuit Public – Paypal will hate that tremendously. Plus it will cost them much financial resources, just for the initial presence in court.
I am quite sure that Paypal got my email this morning after i finished all the complaints with the FTC, SEC, federal reserve, California attorney general’s office, and the California justice dept. A lot of stuff, but i am ready to play the hard ball game, that will cost them a lot more than it is worth. I am seeking 72 hours for their representatives from 1 state away to appear in court or face default judgment.
My legal points are as follows:
- Paypal voided their TOS & agreement when they asked me to conduct criminal activities to get what they want.
- Paypal is operating as a financial institution with power of seizure, without legal authority to do so.
- Paypal is committing felony fraud (possible laundering activities going on as as well, since it seems to be widespread and ongoing), but just my own money is $2,253.36
- Paypal is refusing to release funds, not belonging to themselves, which is called grand theft.
If they would not have ask me to commit a crime, then their contracts are legal. but once they asked me to commit a crime, their contracts became null and void. That is law.
*note, by asking for me to commit a crime, I can also ask for punitive damages. When they did that, it opened them up to being liable
Did you read the TOS?
You can’t file a lawsuit against Paypal in Iowa. In fact, you could owe attorney’s fees and court costs to Paypal as a result of filing in the wrong place. If you don’t withdrawal the lawsuit, Paypal can have it dismissed for improper venue and lack of jurisdiction. Then, they can stick you with up to $1k for fees and costs.
You should seek legal advice from an attorney before spouting tips on how to practice law on a blog. Saying something on a blog post is one thing. Proving it in court is another.
I’m not on Paypal’s side by any means, but you’re taking the filing of a lawsuit entirely to lightly. Filing a complaint is hardly as easy as “Write up a brief, 2-3 pages in length, outlining the case being filed, points of interests, legal issues, damages, rectification being sought. Once all completed, make 4-5 copies of it all.”
“Points of interest” don’t go in complaints. There’s a lot of legal research concerning the viability and grounds for your relief that needs to be done before filing a complaint. Additionally, proper procedure must be followed in order for the complaint to be effective. Again, you really should talk to an attorney to keep from digging yourself deeper into the hole you are already in.
See below from the Paypal TOS:
14.3 Law and Forum for Disputes. Except as otherwise agreed by the parties or as described in section 14.2 above, you agree that any claim or dispute you may have against PayPal must be resolved by a court located in either Santa Clara County, California, or Omaha, Nebraska. You agree to submit to the personal jurisdiction of the courts located within Santa Clara County, California, or Omaha, Nebraska for the purpose of litigating all such claims or disputes. This Agreement shall be governed in all respects by the laws of the State of California, without regard to conflict of law provisions.
14.4 Improperly Filed Litigation. All claims you bring against PayPal must be resolved in accordance with section 14 of this Agreement. All claims filed or brought contrary to section 14 shall be considered improperly filed a breach of this Agreement. Should you file a claim contrary to section 14, PayPal may recover attorneys fees and costs (including in-house attorneys and paralegals) up to $1,000.00 USD, provided that PayPal has notified you in writing of the improperly filed claim, and you have failed to promptly withdraw the claim.
when paypal asked me to acquire contracts between my vendor and their supplier, they conducted a breach of contract by asking me to participate in an illegal activity. Only the court or a law enforcement agency can require such documents. – Contracts 101: A party with a mutual agreement cannot ask another party within the agreement to act in an unlawful manner. Thus, their tos and agreements are void.
and ted…
1. my first filing is Form 1 of Iowa small claims. It is Action For Money Judgment. I already have it done and am preparing to file at the clerk of court in the morning, pending a meeting at paypal this afternoon. Fee is $35 and does not require the outlining brief for response to their response.
2. All cases that have asked to keep jurisdiction in the jurisdiction have won, because Pypal has never been able to legally prove why private individuals should be forced to bare the costs of such travel. – I am also in Iowa, so grounds for moving the case would be void. it is only 2 hours from Paypal. And paypal does have local representation. There are mountains of cases to use in that matter.
3. I have assistance from attorney’s.
cheers
Wow, you’re actually going out of your way to sue paypal, but I’m sure them taking money has happened plenty of time, people just don’t sue. It’s good you’re doing something about it, $2000 is a lot of money.
Your post has just encouraged me to move my funds from my paypal account to an area where I have more control over them.
I don’t use paypal directly. I use a company between me and them. When I have problems I let the company solve it for me.
If they don’t give you your money, it is only right to sue them.
its great to know all these rules, loopholes and such coz it may come in handy in the future. Though depends on the country where you’re in I guess.
The PayPal click-through agreement is a contract of adhesion that just happens to be unconscionable. As such, it is invalid. It was invalid a ruled in 2002 in a California court, and it is invalid today as will be ruled in Florida where the venue and other parts of the agreement are being challenged in Circuit Civil Court.
Hi there just to say thank you because i did everything you said and i got my money unblocked from the account within 1 week, my account is still limited but i got the money out i now use moneybookers
Drew
How is your battle? I would love to see the update to this case.
I have a very similar case with paypal. They are holding more than 5000 in my funds and each time I submit them documents they ask for more. It looks like it’s a never ending story with them with the whole purpose to get my money.
I too am interested to know what’s the latest on this. Did they settle?
I hope those bastards are taken to court