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Whether it can successfully amend the dismissed claims remains to be seen.
And it must back up its allegations with facts during the discovery stage, and survive a likely motion for summary judgment by Pay Pal, assuming that the parties do not “seek an arrangement” by settling the case. Neuburger is a partner in the New York office of Proskauer Rose , and co-chair of the Technology, Media and Communications Practice Group.
Infostream responded with the allegation that Pay Pal was invoking its unfairly, because the company continues to provide services to competitor sites that are similar to its own, such as Ashley Madison.com, which urges users to “have an affair,” and Arrangement Finders.com, which promotes “mutually beneficial arrangements” between men and women. Infostream had adequately alleged that obligation had been breached, the court said, if it could show that Pay Pal terminated the account in order to benefit Infostream’s competitors.
Similarly, the court found that the allegations that Pay Pal used unpublished standards “to pick winners and losers in the market” adequately alleged a claim under the California unfair competition law.
By the way, if you do want to join there at the lowest price, here's how.
Do a trial, and cancel (being sure to pay a safe way).
So it’s not surprising that service providers seek to protect themselves contractually from the potential legal and business consequences of being associated with purveyors of shady, unsavory, or downright illegal services. Claims of common law fraud were dismissed (also with leave to amend), because Infostream did not adequately allege that it had detrimentally relied upon Pay Pal’s representations to it during the parties’ negotiations prior to the account termination.
Pay Pal, the preeminent online payment service, addresses the issue in its User Agreement and Acceptable Use Policy (Just what falls into these prohibited categories can be the subject of dispute, however. But the court allowed Infostream’s breach of contract, breached of the implied covenant of good and fair dealing, and California state unfair competition law claims to stand, at least at this early stage of the litigation.
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