Case Dismissed for No Payment After Discussing Defenses with Plaintiff and Producing Documents in Support

The Debtor developed an online database to provide accurate and complete product information. It offered its database to PIM vendors, category management solutions, and e-commerce data management systems, enabling e-commerce companies to use the data across their entire commerce supply chain.

The Defendant, a dynamic marketplace for freelancers, plays a pivotal role in various fields such as writing, graphic design, web development, marketing, and many other online work categories. The site serves as a catalyst, helping professionals find projects, communicate with clients, and receive compensation, fostering a thriving freelance ecosystem.

The Debtor and the Defendant entered a user agreement that was renewed yearly. Pursuant to the agreements, the Debtor would place requests for jobs in the Defendant’s platform. Freelancers would access the Defendant’s platform to read and apply to the Debtor’s Job Posts. The Debtor will enter into independent hourly contracts with the freelancers if the Debtor and the freelancer deem the terms and conditions of the Job Post and the freelancer’s promise of services acceptable.

The payment process between the parties has remained steadfast and unchanged throughout the complete history of the Debtor and Defendant’s business. Moreover, a significant portion of the funds transferred from the Debtor to the Defendant were securely held by the Defendant in Escrow. These funds were then released to the freelancers upon the Debtor’s approval of the work, ensuring a reliable and transparent payment system.

We procured dismissal of the case for no payment after discussing our ordinary course of business and conduit defenses with the Plaintiff’s counsel and providing the Plaintiff’s counsel with documentary evidence in support of our defenses.

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