Court Certifies Nationwide Class Action against UPS on Fraud Claims
LOS ANGELES – According to MBE franchisee Joe Wightman (not yet confirmed), a nationwide class action lawsuit alleging fraud was certified today for franchise owners who converted from the Mail Boxes Etc. brand to The UPS Stores concept in 2003. The ruling made by Superior Court Judge William F. Highberger will allow 3500 UPS Store owners to present their claims that UPS and its affiliated companies violated California Franchise law that protects franchisees from deception.
The franchise owners assert that they were misled into making the conversion after United Parcel Service acquired the Mail Boxes Etc. franchise system in 2001. Other legal actions have been filed by MBE store owners claiming they were also subjected to breaches of contract and other violations of California law. Both sets of claims are pending before Judge Highberger.
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Related Article:
Mail Boxes Etc Franchisees Head to Trial with Crucial Exhibits in Hand- Franchise topic:

3500 zees is a statement. Zees need to band together. Richard is right only by being a militant force is when things will change. Apathy and being passive will not change anything.
You can also thank sites like BMM where people can voice their opinion.
Guest writes : "It's weird, all those franchisees that spent tons of money and time have gotten nothing, and the smart ones did nothing and will get all the money!"
Guest has got a great sense of humor. Been a very hard road for many of these franchisees, and many of the undeserving complainers may get a financial reward from the class action.
But, this was as dysfunctional group of franchisees as I have ever seen, which allowed UPS to pick them off. UPS did engage in appalling legal tactics which intimidated any reasonable person. However, the franchisee groups seem to spend as much time attacking each other as moving on their litigation.
Am I wrong about this?
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Guest writes: "Michael, I do appreciate that you have a better understanding than most outsiders on this situation, but I do have to say you are wrong in some of your statements or at the very least not totally correct."
I stand corrected and thank-you for laying this out so clearly.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Guest writes: "I still have my UPS Store, but I am barely hanging on, and making attorney payments is not easy, and may well be unaffordable soon."
The Brown Shield Group has advanced their group's litigation.
If you get an opt out notice from the class action, then you will have a serious decision.
But, I would not make this decision based upon paying attorney fees.
You have to ask your attorney about the differences between the two actions, and trust that those attorneys who have got this far with the group are going to be straight up with you.
This is not the time to look for what you think might be a cheaper legal solution.
Talk with your attorneys as a group - but make no mistake, the certification is only the beginning of a very long fight. You may be closer to the finish line with your current litigation.
Good luck with whatever course you take.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
I am not an expert in US Class Actions, but generally one opts out of a class and doesn't opt in. I am pretty sure that if you are a part of the class, you will get a notice asking you to exercise your right to opt out. But this decision should be taken only in consultation with your current attorney.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
I have to ask I have noticed that you seem to have quite an opinion here in relation to the various posts, strong opinions one might say, yet, it is obvious that not only are you outside this group but you are also outside the country this lawsuit is being litigated, while I am sure that your opinion is welcomed and read here I find it logical to assume that your advertising links are the primary reason you post here and I for one would appreciate it if you would cease and desist from doing so.
Pardon the Pun...
USA writes: "I am sure that your opinion is welcomed and read here I find it logical to assume that your advertising links are the primary reason you post here."
Well, one out of two isn't bad. I do post here because my opinion is welcomed, read and responded to.
Since I am not licensed in the US to practice law, despite having a JD, your assumption that I post because of advertising links is not logical.
What would I be advertising to an audience that cannot employ my litigation services?
As to your request that I cease posting for your benefit - I have a suggestion. Don't read what I post.
Looking forward to a more intelligent discussion of franchising next time around.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Being a New Yorker, I am the last one to criticize people for sticking their nose into other folks affairs.
We New Yorkers keep a close eye out for any disputes with the British as an excuse to invade Canada, and when our hometown boy Aaron Burr wasn't lawyering he was busy planning to invade Mexico--or at least become King of Kentucky (wonder if Col. Sanders would have commanded Burr's militia?). We named our red-light district the "Crossroads of the World" and in the middle of it we set up lawn chairs in the street and have a naked cowboy from Ohio playing a guitar.
Compared to New Yorkers, them Canucks are models of propriety.
That being said, "USA" misses the point that BMM has a global audience (including a lot of Australians) and that Webster customarily gives an analysis which is accurate under US law.
It is one thing to criticize the accuracy of his analysis, but to criticize him merely for being Canadian is a bit odd if this was intended as a serious comment.
Besides, until we can get some folks from New Jersey to post on BMM, the Canucks are who we poke fun at.
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Paul writes: "It is one thing to criticize the accuracy of his analysis, but to criticize him merely for being Canadian is a bit odd if this was intended as a serious comment."
The Ontario Franchise Law is largely based on the FTC Rule, with some notable changes. As our legal history on this is small, it is incumbent on an franchise attorney in Ontario to learn the US law.
I look forward to being corrected on the nuances of US franchise law.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
My perception on the idiot’s comments are based on layman research, over many years, into Australian law and its influence on franchising; or lack of. Obviously Michael is highly qualified and I find the expert discussions about interpretations, applications and differences in the laws of the US and Canada to add to my understanding.
When it comes to the subject of law pertaining to franchising I would suggest that there is mostly a universal language, admittedly with different dialects, that one can appreciate if one bothers to listen, or read.
‘George’ might want to learn rather than criticize without contribution but you cannot learn unless you know when to keep your mouth shut. There is an awful lot to be learnt here if one has a functioning operating system.
that - Are you ready? Do you have pen and paper? Ok. Here goes:
YOU CAN'T FIX STUPID.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
You obviously have no knowledge of this subject, but run your stupid mouth against a man who is a bonafide expert on this and many questions of relevance here.
His comments are correct.
Yours are ignorant and insulting.
You are a bloody fool, sir. You might have passed for intelligent had you kept your mouth shut.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
We are in great haste to construct a magnetic telegraph from Maine to Texas. But Maine and Texas, it may be, have nothing important to communicate.
--Henry David Thoreau
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
further removed from Texas, and not only geographically. I enjoy both and will continue to do so. But the observation is correct. We have absolutely nothing whatsoever in common. Maybe that's the reason I enjoy both so very much. If you think about the prospect of being promiscuous, your wife's twin sister usually aint your first choice.
Speaking of promiscuity, Paul, where are those pictures of your sister that you promised me?
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Who is taking shots at our Canadian Franchise Expert, Michael Webster, who shares his expertise and insight and views with all who read Blue Mau Mau. Thanks for always articulate Richard Solomon who steps in and embarasses those who don't know what they are talking about and who defends a fellow attorney who tells the truth. All of the Blue Mau Mau Attorneys, i.e. Richard Solomon, Paul Steinberg, and Michael Webster can be depended upon to tell the truth ----and interestingly, they now and then share a different perspective of the truth, and share their valuable insight with readers of Blue Mau Mau.
We, who read Blue Mau Mau, have been educated to a degree about Class Actions in prior postings. I really don't know anything about this new classs action, or whether or not, there is a newer lawsuit, a classaction, in the works by The UPS Store franchisees against MBE/UPS.
The PSA lawsuit is due to hit the court again in August, after a continuance, and if there is another continuance, or a jury trial, or a settlement,, this will, of course, be interesting and relevant, in some respects, to the mass actions (The BSA Lawsuit) in the the California federal courts.
The PSA has been fighting in the Courts since 2003 and the BSA Class Action, that became a Mass Action, (agreed to by the parties and the District Court Judge) in the Federal Court was filed in 2006. My understanding, as a lay person, and not as an attorney, is that a federal Mass Action involves belweather trials of representative plaintiffs picked by both the defendant and the plaintiff. In the BSA Lawsuit, eight Bellweather plaintiffs were dismissed in summary judgement by the District Court Judge, who then decidided that he wanted to dismiss the entire 200 or more plaintiffs in individual summary judgements before the summary judgement could be appealed to the 9th Circuit Court of Appeals.
It would be interesting if the attorneys would continue the discussion started on this thread as to the advantages and disadvantages of dismissing 200 or more defendants out of court in a summary judgement from the perspective of justice for both of the parties.
another separate lawsuit. First of all, the separate lawsuit cannot simply be dismissed without prejudice once a responsive pleading has been filed by the opposite party - unless the opposite party is willing to stipulate to dismissal without prejudice - not likely, especially once they know your reason. If they think you are growing light in the wallet, they will not cooperate on anything other than a favorable resolution in their favor - including a cheap settlement.
Even if that very unlikely event were to occur, the court from which you opted out probably would not now allow you to rejoin the class. You had your chance, so the theory goes, and you made your bed.
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Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
is certified. In that notice there is an opt out opportunity given. If you don;t opt out you are in. In some state courts, if you don;t opt in, you are out. I don't know what court this ws in, state or federal. I am assuming the class action is in a federal court. If I am wrong, then I don;t have the answer.
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Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
It appears that under the terms of the Class Action Fairness Act of 2005, defendants will remove this newest class action against MBE/UPS from the State Courts to the Federal Courts, where a Federal Judge will apply State Law and Federal Law as well as Federal Regulatory Policy Goals to the dispute.
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