Menu
Blog Banner Image

The Franchise Memorandum

Appeals Court Reverses Summary Judgment, Requiring Trial on Claims by Former Mail Boxes Etc. Franchisees

A California appellate court ruled late last month that United Parcel Service (“UPS) and Mail Boxes Etc., Inc. (“MBE”) should not have prevailed on summary judgment on some of the franchisee claims brought against them after UPS acquired MBE. G.I. McDougal, Inc., et. al. v. Mail Boxes Etc., Inc. et al., 2008 WL 2152911 (Cal. App. 2 Dist. May 23, 2008). The essence of the plaintiffs’ 33-count complaint is that MBE franchisees were harmed by the 2001 acquisition and the alleged subsequent emphasis on “The UPS Store” units. The trial court granted the defendants’ summary judgment motion on all claims in November of 2006.

On appeal, the court held there are “multiple triable issues of fact” regarding some of the claims. For example, the court held that the MBE owners can go to trial on claims for interference with their customer relationships, breach of the duty to provide marketing material for MBE stores, misuse of MBE marketing funds to support The UPS Store units, and improper competition by UPS in MBE franchisees’ territories.

Email LinkedIn Twitter Facebook

The information contained in this post is provided to alert you to legal developments and should not be considered legal advice. It is not intended to and does not create an attorney-client relationship. Specific questions about how this information affects your particular situation should be addressed to one of the individuals listed. No representations or warranties are made with respect to this information, including, without limitation, as to its completeness, timeliness, or accuracy, and Lathrop GPM shall not be liable for any decision made in connection with the information. The choice of a lawyer is an important decision and should not be based solely on advertisements.

About this Publication

The Franchise Memorandum is a collection of postings on summaries of recent legal developments of interest to franchisors brought to you by Lathrop GPM LLP. 

To subscribe to monthly emails for The Franchise Memorandum, please click here

Topics

Archives

2024

2023

2022

2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

Blog Authors