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Mon Dec 9 2019 20:17:17

Lawyer Who Says He Was Stiffed by Client Sues PayPal

By: Ina Steiner

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Some people become dissatisfied with how PayPal handles disputes between buyers and sellers, but leave it to a legal professional to take his beef with the company to court.

Law.com's The Recorder wrote about a lawsuit filed by paralegal Todd White against PayPal alleging "claims of breach of contract, fraud and unlawful business practices" after his client reportedly cancelled payment of their attorney fee - and noting he was also hit by PayPal's $20 chargeback fee.

The Recorder reported White took issue with PayPal's practice of not providing the same financial protections to providers of services and digital goods as sellers of physical goods on the platform. 

Sellers are well familiar with PayPal policies and practices; it will be interesting to see if this case has legs.

You can read, "Suit Claims PayPal Tramples Attorney-Client Privilege With 3rd-Party Access to Attorney Fees" on the Law.com website.



Comments (11) | Permalink

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Perminate Link for Lawyer Who Says He Was Stiffed by Client Sues PayPal   Lawyer Who Says He Was Stiffed by Client Sues PayPal

by: purpleiris This user has validated their user name.
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Tue Dec 10 14:03:50 2019

I'm not sure how his argument is going to fly. I'm assuming the third party is his client's bank or credit card company, which is the client's privilege to use. PayPal has nothing to do with that.

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This user has validated their user name. by: The End

Wed Dec 11 05:46:31 2019

PayPal IS the 3rd party.
Useless.
DESTROY PayPal.

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by: ElectronixRecyclers This user has validated their user name.

Wed Dec 11 10:46:24 2019

From what I read, it's not a simple matter of being stiffed on a bill.

The plaintiff is alleging that PayPal allowing third party access to transaction details violates attorney-client privilege, since said third-party would be privy to the financial arrangements made between attorney and client.

This is a pretty dumb argument... if that were the case, credit card processors and banks couldn't handle transactions between anyone in a privileged relationship... doctor/patient, attorney/client, even parishioner/church.

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by: purpleiris This user has validated their user name.

Wed Dec 11 23:13:22 2019

I have to wonder how the client got his bank to reverse the payment. I'm sure he had to pay for that. It has been my experience that you cannot cancel a transaction when you gave the recipient authorization to take that money -- when using the debit/credit card, that is.

I haven't written checks in years, so I don't know how they're handling those these days.

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by: elcheapoposters This user has validated their user name.
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Thu Dec 12 00:35:09 2019

This is a huge reason I haven't done much with digital downloads. I've gotten mixed answers from Paypal and other merchant accounts.

Paypal told me since there's no tracking number, there's no way they will back me up in a chargeback situation. A $20 chargeback hit against a $1 download doesn't make sense to even get into the game...

I am experimenting taking ZELLE - some customers have balked at it, but I've been getting regular ZELLE payments. I think this type of payment is great for low dollar digital goods and services. Heck if a customer is afraid to risk a buck they've got bigger issues... :)

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This user has validated their user name. by: The End

Thu Dec 12 01:07:58 2019

Operating WITHOUT PayPal is EASY :
Simply have copies of any email communications,
dial the number on the back of your credit card,
explain the case and let the Bank's Pitbulls attack   :o)
Takes less than a day.
I win 100 % of the time.

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by: cvsharkey This user has validated their user name.

Thu Dec 12 07:17:00 2019

Is this paralegal practicing LAW? Excuse me?

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by: go-figure This user has validated their user name.

Thu Dec 12 08:18:16 2019

@CVS - Yea, you noticed that too.

First off, paralegals aren't lawyers! As such, they can't practice law so how in the he-double toothpicks can he claim attorney-client privilege????

Good luck tilting at that windmill.  

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by: treasurehunter777 This user has validated their user name.

Thu Dec 12 12:00:18 2019

PayPal sucks.com   I hope he sues the pants off PayPal not my pal.

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by: treasurehunter777 This user has validated their user name.

Thu Dec 12 12:01:33 2019

A lot of people get stiffed by PayPal

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by: Fahrenheit451 This user has validated their user name.
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Thu Dec 12 13:48:02 2019

I think he's going after the wrong party.
He should be suing or sending to collection against the client, who decided he didn't have to pay for the service already performed.
PayPal is not in the wrong in that case.
By the way, anyone can practice law. Its the execution that is regulated by the state bar association. The paralegal is wrong to accuse without a basis in fact.



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