Source: https://www.scribd.com/doc/144418598/Newsvine-Class-Action-Complaint
Timestamp: 2016-10-24 12:34:46
Document Index: 351722107

Matched Legal Cases: ['§ 19', '§ 19', '§ 19', '§ 19', '§ 19', '§ 19', '§ 19', '§ 19']

BrowseBrowseInterestsBiography & MemoirBusiness & LeadershipFiction & LiteraturePolitics & EconomyHealth & WellnessSociety & CultureHappiness & Self-HelpMystery, Thriller & CrimeHistoryYoung AdultBrowse byBooksAudiobooksComicsSheet MusicBrowse allUploadSign inJoinBooksAudiobooksComicsSheet Music1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 1.1 PLAINTIFF KATHLEEN WILKES brings this class action on behalf of herself and all others similarly situated against DEFENDANT NEWSVINE, INC., and states and alleges as follows: I. NATURE OF ACTION Plaintiff brings this class action against Newsvine to recover damages and other v. NEWSVINE, INC., a Washington corporation, Defendant. IN THE SUPERIOR COURT FOR THE STATE OF WASHINGTON IN AND FOR KING COUNTY
KATHLEEN WILKES, on her own behalf and on the behalf of all others similarly situated, NO. 13-2-20979-9 SEA Plaintiff, CLASS ACTION COMPLAINT
relief available at law and in equity and to remedy Newsvine’s deceptive, unfair, inequitable, and unconscionable conduct, which is detailed below. 1.2 Plaintiff and Class members are or were registered “Users” of Defendant’s
936 North 34th Street, Suite 400 Seattle, Washington 98103-8869 TEL. 206.816.6603  FAX 206.350.3528 www.tmdwlaw.com
promised to pay each User a percentage of the revenue Newsvine collected from third-party advertisers in relation to the User’s postings. Newsvine, however, has unlawfully refused to pay Users in accordance with that Agreement, depriving Plaintiff and Class members of funds they earned and to which Plaintiff and Class members are rightfully entitled. II. PARTIES 2.1 2.2 Plaintiff Kathleen Wilkes (“Plaintiff”) is a resident of Dane County, Wisconsin. Defendant Newsvine, Inc. (“Newsvine” or “Defendant”) is a Washington
Agreement calls for the application of Washington law “without resort to its conflict of law provisions.” V. FACTUAL BACKGROUND 5.1 Newsvine operates the website Newsvine.com, which is a community-based
news website where registered Users post original articles and share links or “seeds” to external content. Users then comment on each other’s posts through comment threads and discuss and debate the news. Newsvine touts that it is “a community-focused website where users can
share, write, and discuss the news.” Newsvine’s Code of Honor indicates that the website’s “primary purpose is to provide a place for people to share and discuss topics relating to the news.” 5.2 Newsvine requires its Users to “Register for Newsvine.” To register, a User
must enter an email address, create a password, and create a Newsvine username. In addition, by registering for Newsvine, Users must “agree to the Newsvine User Agreement.” See https://secure.newsvine.com/_tps/_accounts/register. 5.3 Registered Users can post content on a portion of the Newsvine site that is
identifiable by a third-level domain name selected by the user (username.newsvine.com), called a “Subdomain.” Users can post both original content and “seeds” to non-original content, such as news articles or other content, available on other websites. As with other areas of Newsvine’s website, Newsvine allows third parties to post advertisements in the Subdomains of its Users. 5.4 Under the Newsvine User Agreement in place from May 26, 2009 to February 7,
2013 (the “2009 User Agreement”), Newsvine promised to pay each User ninety percent (90%) of the net advertising revenue Newsvine derived from posting advertisements of third parties to the User’s Subdomain (“User Earnings”). Newsvine also promised that the remaining ten percent (10%) would go to whoever referred the User (“Referral Earnings”) or to Newsvine if there was no referring User. User Earnings and Referral Earnings are referred to herein together as “Newsvine Earnings” or “Earnings.” 5.5 Under the section heading “Changes to This User Agreement,” Newsvine
promised Users that if Newsvine changed or modified “any of the terms or conditions contained [in the 2009 User Agreement], or any policy of the [Newsvine site]… it will post a new version on the Site and update the effective date….” The 2009 User Agreement further promises that any changes or modifications to the Agreement “will be effective upon posting of the revisions.”
an article entitled “Newsvine Now Supports Google AdSense” (the “Article”). The entire Article was not displayed on Newsvine’s homepage. Rather, to view the content of the Article, a User had to click on the title of the Article. The first sentence of the Article stated: “We’ve wired up a new-and-improved method of earning money from your Newsvine column.” The Article went on to describe Google AdSense and how Users may sign up with Google AdSense, stating that “registering now is a good idea.” The last two sentences of the Article then provided: “November is the last month Newsviners will receive the traditional 90% of ad revenue generated by their column. Newsviners must cash out - or donate - their earnings by Monday, December 31st [2012].” 5.8 On information and belief, the majority of Users never saw or clicked on the
date of February 7, 2013 (the “2013 User Agreement”) eliminates all references of payments to Users who generate advertising revenue. The 2013 User Agreement also provides, however, that it does “not alter in any way the terms or conditions of any other agreement [the User] may have with Newsvine for products or services.” Moreover, pursuant to the 2009 User Agreement, the revised terms of the 2013 User Agreement did not become effective until the new version of the Agreement was posted on February 7, 2013.
representative of Newsvine’s disregard of the law and its own contractual obligations. VI. PLAINTIFF’S ALLEGATIONS 6.1 Plaintiff Wilkes became a Newsvine User in August 2010. When she registered
on Newsvine.com, Plaintiff Wilkes agreed to the 2009 User Agreement, including the provisions relating to Newsvine Earnings. Plaintiff Wilkes posted primarily original content under her Newsvine Subdomain. From the time she registered through December 31, 2012, Plaintiff Wilkes has made $183.15 in Newsvine Earnings. Indeed, Plaintiff Wilkes’ Newsvine Earnings Account History still indicates that she is owed $183.15 in Newsvine Earnings. 6.2 On February 4, 2013, Plaintiff Wilkes requested payment of her Newsvine
Earnings. On February 5, 2013, Newsvine’s Director of Community, Tyler Adams, emailed Plaintiff Wilkes and informed her that her funds were no longer available. 6.3 Plaintiff Wilkes, like many other Newsvine Users, did not see the November 16,
2012 Article before the purported and inadequate December 31, 2012 deadline by which Users were “supposed” to cash out their Newsvine Earnings. Plaintiff Wilkes also did not receive any other notice before December 31, 2012 about the purported change to the 2009 User Agreement relating to Newsvine Earnings. 6.4 Despite the fact that Newsvine had not yet posted or e-mailed any changes or
behalf of a class consisting of: All persons who are or were registered Newsvine users who had unpaid Earnings in their accounts as of February 6, 2013. Excluded from this Class are Defendant, any entity in which Defendant has a controlling interest or which has controlling interest in Defendant, and Defendant’s legal representatives, assignees and successors. Also excluded are any judges to whom this case is assigned and any member of an assigned judge’s immediate family. 7.2 As set forth below, the proposed Class satisfies the requirements for a class
precise number of Class members is unknown to Plaintiff, but it is clear that the number greatly exceeds the number for which joinder would be practicable. Indeed, Newsvine boasts on its website that it grew “rapidly from a standing start to over a million users in 2007” and currently hosts over 40 million unique visitors a month. See http://www.newsvine.com/_tps/about/newsvine.
only individual class members. Some of the common legal and factual questions include: a. Whether Newsvine violated Washington’s Consumer Protection Act by
common nucleus of operative facts. In each case, Newsvine failed to abide by the terms of its 2009 User Agreement. Newsvine purported to change those terms by posting the November 16, 2012 Article. The title of that article, “Newsvine Now Supports Google AdSense,” was unfair and deceptive and failed to inform Users that Newsvine was purporting to change the terms of its 2009 User Agreement. The Article itself was also unfair and deceptive, and failed
to properly inform Users of purported changes to the 2009 User Agreement. Moreover, despite the fact that Newsvine did not post any changes or revisions to the 2009 User Agreement until February 7, 2013, Newsvine has refused to pay Users their Earnings in accordance with the terms of the 2009 User Agreement. 7.9 Class members have been damaged by Newsvine’s misconduct. Class members
have not been paid the Newsvine Earnings, and have been deprived the use of their funds. Newsvine, on the other hand, has unlawfully retained the funds, used them in the operation of its business, and has retained all interest and other gains earned off of the funds. 7.10 Plaintiff’s claims are typical of the claims of the other Class members. Plaintiff,
familiar with the basic facts underlying the Class members’ claims. Plaintiff’s interests do not conflict with the interests of the other Class members she seeks to represent. Plaintiff has retained counsel competent and experienced in class action litigation and contract law and intends to and will prosecute this action vigorously. 7.12 Plaintiff’s counsel have successfully prosecuted complex class actions,
including consumer protection class actions. Plaintiff and Plaintiff’s counsel will fairly and adequately protect the interests of the Class members. 7.13 The class action device is superior to other available means for the fair and
efficient adjudication of the claims of Plaintiff and Class members. The relief sought per individual Class member is small given the burden and expense of individual prosecution of the potentially expensive litigation necessitated by Newsvine’s conduct. Furthermore, it would be
virtually impossible for Class members to seek redress on an individual basis. Even if Class members themselves could afford such individual litigation, the court system could not. 7.14 Individual litigation of the legal and factual issues raised by Newsvine’s conduct
would increase delay and expense to all parties and to the court system. The class action device presents far fewer management difficulties and provides the benefits of a single, uniform adjudication, economies of scale, and comprehensive supervision by a single court. VIII. FIRST CLAIM FOR RELIEF (Breach of Contract – On Behalf of the Class) 8.1 Plaintiff realleges and incorporates by reference each and every allegation set
(90%) of the net advertising revenue Newsvine derives from posting an advertisement of a third party to a User’s Subdomain, and to pay the remaining ten percent (10%) to whomever referred the User or to Newsvine if there was no referring User. Newsvine further promised that changes or modifications to “any of the terms or conditions contained [in the 2009 User Agreement], or any policy of the [Newsvine site]” will be posted in a new version of the User Agreement with an updated effective date. (Emphasis added.) Pursuant to the 2009 User Agreement, any changes or modifications to the Agreement did not become effective until a new version of the Agreement was posted on Newsvine.com. 8.3 Newsvine has failed or refused to pay Plaintiff or Class members their Newsvine
Earnings in accordance with the 2009 User Agreement. Rather, Newsvine purported to change the terms of the 2009 User Agreement without posting a revised version of the Agreement with an updated effective date to Newsvine.com. In particular, Newsvine purported to change the terms of the 2009 User Agreement relating to Newsvine Earnings by posting the November 16, 2012 Article, which provides: “November is the last month Newsviners will receive the traditional 90% of ad revenue generated by their column. Newsviners must cash out - or
donate - their earnings by Monday, December 31st. [2012].” Newsvine did not post a revised version of the User Agreement with an updated effective date until February 7, 2013. 8.4 Plaintiff Wilkes, for example, did not see the November 16, 2012 Article before
including damages, specific performance, rescission, an accounting, attorneys’ fees, costs of suit, and other relief as appropriate. IX. SECOND CLAIM FOR RELIEF (Violation of the Washington Consumer Protection Act, RCW § 19.86 et seq. – Non-Per Se Deceptive Business Practice – On Behalf of the Class) 9.1 Plaintiff realleges and incorporates by reference each and every allegation set
forth in the preceding paragraphs. 9.2 Newsvine is a “person” within the meaning of the Washington Consumer
Protection Act, RCW § 19.86.010(1), and conducts “trade” and “commerce” within the meaning of the Washington Consumer Protection Act, RCW § 19.86.010(2).
Plaintiff and other Class members are “persons” within the meaning of the
Washington Consumer Protection Act, RCW § 19.86.010(1). 9.4 Newsvine has engaged in deceptive acts or practices. Newsvine promised
Plaintiff and the Class that it would pay Newsvine Earnings pursuant to the 2009 User Agreement. Newsvine further promised that changes or modifications to “any of the terms or conditions contained [the 2009 User Agreement], or any policy of the [Newsvine site]” would be posted in a new version of the User Agreement with an updated effective date, and that any such changes or modifications would not become effective until a new version of the Agreement was posted on Newsvine.com with an updated effective date. 9.5 Despite these representations, Newsvine has engaged in a pattern and practice of
refusing to pay Plaintiff and Class members their Newsvine Earnings in accordance with the terms of the 2009 User Agreement. Newsvine’s conduct is deceptive under RCW 19.86.020. 9.6 Newsvine’s deceptive acts or practices have repeatedly occurred in its trade or
business and were and are capable of deceiving a substantial portion of the public. The acts complained of herein are ongoing and/or have a substantial likelihood of being repeated. 9.7 Newsvine’s deceptive acts and practices affect the public interest. Further, the
deceptive acts and practices were committed in the general course of Newsvine’s business and have already injured thousands of individuals nationwide. 9.8 As a direct and proximate result of Newsvine’s deceptive acts or practices,
including recovery of actual damages, treble damages, attorneys’ fees, costs of suit, and such further relief as the Court may deem proper.
X. THIRD CLAIM FOR RELIEF (Violation of the Washington Consumer Protection Act, RCW § 19.86 et seq. – Non-Per Se Unfair Business Practices – On Behalf of the Class) 10.1 Plaintiff realleges and incorporates by reference each and every allegation set
forth in the preceding paragraphs. 10.2 Newsvine is a “person” within the meaning of the Washington Consumer
Protection Act, RCW § 19.86.010(1), and conducts “trade” and “commerce” within the meaning of the Washington Consumer Protection Act, RCW § 19.86.010(2). 10.3 Plaintiff and other Class members are “persons” within the meaning of the
Washington Consumer Protection Act, RCW § 19.86.010(1). 10.4 Newsvine’s systematic practice of failing to pay Plaintiff and Class members
and failing to properly post changes and modifications to the 2009 User Agreement is unfair because these acts or practices: (1) cause substantial financial injury to Plaintiff and Class members; (2) are not outweighed by any countervailing benefits to consumers or competitors; and (3) are not reasonably avoidable by consumers. 10.5 Newsvine’s systematic practice of refusing to pay Plaintiff’s and Class
members’ Newsvine Earnings and failing to properly post changes and modifications to the 2009 User Agreement are unfair because these acts or practices are immoral, unethical, oppressive and/or unscrupulous. 10.6 Newsvine’s unfair acts and practices affect the public interest. Further, the
unfair acts and practices were committed in the general course of Newsvine’s business and have already injured thousands of individuals nationwide. 10.7 As a direct and proximate result of Newsvine’s unfair acts or practices, Plaintiff
Newsvine, including recovery of actual damages, treble damages, attorneys’ fees, costs of suit, and such further relief as the Court may deem proper. XI. FOURTH CLAIM FOR RELIEF (Conversion – On Behalf of the Class) 11.1 Plaintiff realleges and incorporates by reference each and every allegation set
Newsvine’s wrongful conduct is continuing. As a result of the unlawful acts of Newsvine, Plaintiff and Class members have
been wrongfully deprived of monies owed to them. Thus, Plaintiff and the Class are entitled to recovery of such damages, including interest thereon, as well as attorneys’ fees and costs.
XII. FIFTH CLAIM FOR RELIEF (Unjust Enrichment – On Behalf of the Class) Plaintiff realleges and incorporates by reference each and every allegation set
continues to be, unjustly enriched as a result of the unlawful and/or wrongful refusal to pay funds owed to Plaintiff and the Class. Newsvine continues to earn interest and receives other benefits from Plaintiff’s and the Class’ funds that have been wrongfully withheld. 12.3 As between the parties, it would be unjust for Newsvine to retain the benefits
attained by its actions. Accordingly, Plaintiff and members of the Class seek a full accounting and restitution of Newsvine’s enrichment, benefits, and ill-gotten gains acquired as a result of the unlawful and/or wrongful conduct alleged herein. XIII. SIXTH CLAIM FOR RELIEF (Breach of Implied Covenant of Food Faith and Fair Dealing – On Behalf of the Class) 13.1 Plaintiff realleges and incorporates by reference each and every allegation set
virtue of Newsvine’s contractual relationship with Plaintiff and Class members. 13.3 Newsvine breached this duty by, among other things: (1) failing to pay Plaintiff
honestly, and fairly deal with Plaintiff and the Class in their contractual relationship. 13.6 As a direct result of Newsvine’s breaches of the implied covenant of good faith
appropriate relief for the foregoing contractual breaches of the implied covenant of good faith and fair dealing. XIV. PRAYER FOR RELIEF WHEREFORE, Plaintiff, on behalf of herself and all others similarly situated, prays for relief pursuant to each cause of action set forth in this complaint as follows: A. 23(b)(3); B. C. D. E. F. Designating Plaintiff as Class Representative; Designating Plaintiff’s counsel as counsel for the Class; Issuing proper notice to the Class at Defendant’s expense; Declaring that Newsvine breached its contract with Plaintiff and Class members; Declaring Newsvine committed deceptive acts or practices in violation of the Determination that this action may proceed as a class action under Civil Rule
DATED this 24th day of May, 2013. TERRELL MARSHALL DAUDT & WILLIE PLLC
By: /s/ Toby J. Marshall, WSBA #32726 Toby J. Marshall, WSBA #32726 Email: tmarshall@tmdwlaw.com Erika L. Nusser, WSBA #40854 Email: enusser@tmdwlaw.com 936 North 34th Street, Suite 400 Seattle, Washington 98103-8869 Telephone: (206) 816-6603 Facsimile: (206) 350-3528 SCHROETER GOLDMARK & BENDER Adam Berger, WSBA #20714 Email: berger@sgb-law.com 810 Third Avenue, Suite 500 Seattle, Washington 98104 Telephone: (206) 622-8000 Facsimile: (206) 682-2305 KURZON LLP Jeff Kurzon, Pro Hac Vice Application Forthcoming Email: jeff@kurzon.com 154 Grand Street New York, New York 10013 Telephone: (212) 203-8919 Attorneys for Plaintiff
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