A federal judge in Massachusetts has ruled that a couple, David and Ina Steiner, can seek punitive damages in their lawsuit against eBay, following a bizarre harassment campaign orchestrated by the company’s employees. This decision comes after eBay’s legal team raised concerns about the eligibility for punitive damages during settlement discussions.
The Steiners, who run the newsletter EcommerceBytes, became targets of harassment after their content was deemed critical of eBay. The campaign, which occurred in 2019, included sending disturbing items like cockroaches and a bloody Halloween mask to the couple and even involved surveillance of their home. Seven former eBay employees have pleaded guilty and received prison sentences for their roles in the harassment.
While the judge, U.S. District Judge Patti Saris, allowed the Steiners to pursue punitive damages related to claims of intentional infliction of emotional distress and civil conspiracy, she ruled that some claims stemming from trespass and false imprisonment would not qualify for punitive damages under Massachusetts law. The court found that the most troubling actions related to these claims happened in Massachusetts, which limited the Steiners’ ability to seek punitive damages.
However, since some unlawful conduct occurred in California—where eBay is headquartered—the judge concluded that California law, which allows for punitive damages, should apply to those broader claims. This ruling underscores the complexities of jurisdiction and applicable law in cases involving multi-state corporate conduct.
The Steiners are seeking over $12 million in damages, and their attorney has emphasized the importance of punitive damages as a deterrent against similar corporate misconduct in the future. The case continues in federal court, with the Steiners and eBay still in litigation over the harassment claims.
