Brief Fact Summary. eBay, Inc. (Plaintiff) sought a preliminary injunction enjoining Bidder’s Edge, Inc. (Defendant) for trespass against eBay’s (Plaintiff) online trading site.
Synopsis of Rule of Law. A preliminary injunction may be granted in order to prevent an increase in the complained-of activity when a likelihood of harm is presented by the increase.
A serious question is one on which the movant has a fair chance of success on the merits.View Full Point of Law
Issue. Can a preliminary injunction be granted in order to prevent an increase in the complained-of activity when a likelihood of irreparable harm is presented by the increase?
Held. (Whyte, J.) Â Yes.Â A preliminary injunction may be granted in order to prevent an increase in the complained-of activity when a likelihood of harm is presented by the increase.Â eBay (Plaintiff) claimed that Bidder’s Edge (Defendant) â€œrobot/spiderâ€ searches caused economic loss and potential harm from the damage that would be caused by a possible â€œcrashâ€ of the eBay (Plaintiff) website.Â Potential monetary damages are usually not â€œa proper foundation for a preliminary injunctionâ€ and eBay (Plaintiff) does not seem to have made a showing that monetary damages could support relief.Â If Defendant activities were allowed to continue and similar â€œrobot/spiderâ€ engines also joined in searching Plaintiff at the same time, Plaintiff ould suffer great harm if the website crashed.Â For Plaintiff to prevail on a trespass claim, it must establish that: (1) Defendant intentionally and without authorization interfered with Plaintiff’s possessory interest; and (2) this unauthorized use proximately caused damage to eBay (Plaintiff).Â First, Plaintiff explicitly and repeatedly informed Defendant that Defendant’s use of the website was not authorized.Â The unauthorized use did cause damage to eBay (Plaintiff), even if Plaintiff cannot show that Defendant’s use of the site did slow it down.Â Plaintiff’s website is personal property, and a person does not have to cause physical or material damage to that property in order to be considered a trespasser.Â Therefore, even if eBay (Plaintiff) cannot show that Bidder’s Edge (Defendant) caused the website to slow down to the point that Plaintiff’s ability to serve other customers was hindered, Plaintiff has still met the requirements necessary to demonstrate trespass.Â Preliminary injunctive relief is, therefore, the proper remedy.
Discussion. The court sought to prevent the loss of profits and loss of customer goodwill, which because such losses are difficult to calculate or compensate monetarily, is appropriate injunctive relief.