Publishers Jointly Offer Daily Coverage of UPS Store Trial
LEXINGTON, Ky. – Blue MauMau and Courtroom View Network announce today that they will work jointly to report twice a day on the highly charged Morgate v Mail Boxes Etc. bench trial (no jury). It starts in Los Angeles on Monday morning, August 3, and is expected to last three days.
United Parcel Service bought the Mail Boxes Etc. franchising firm in 2001 for an estimated $191 million in a bid to capture a larger market share of home and small-office parcel shipments. The shipping firm wasn’t so interested in taking over to sell MBE franchises. Rather, it wanted the 3,400 Mail Boxes Etc. store owners to jump ship and move to the new brand and franchise system of The UPS Store.
Franchise owner-operators claim that Mail Boxes Etc. provided them with false information and coerced them to drop the Mail Boxes Etc. brand to join a largely untested business model that focused on parcel shipments under the well-known brand name of UPS.
UPS denies those claims and has fought the charges for years in court.
But franchisees were given a helping hand last month. On June 19 California Superior Court Judge William Highberger stunned the franchising firm by certifying a class action lawsuit that enables some 3,500 Mail Boxes Etc. franchisees to participate in the legal action. A class action suit helps individual franchise owner-operators, who are typically on a small budget, to each share the costs of expensive franchisee attorneys and court fees as opposed to having just a few franchisees pay hundreds of thousands of dollars.
A very short synopsis of the morning and afternoon court proceedings will be posted on Blue MauMau twice a day. Each report on Blue MauMau will have a link to CVN’s much more detailed report.
Against opposition by United Parcel Service, over 1,400 franchisees and professionals petitioned Judge Highberger in April to provide closed circuit video coverage of the trial. The court denied the petition, but for the August 3 trial, Courtroom View Network will have a legal reporter attend and cover the proceedings.
Courtroom View Network is known for providing live coverage and video of high-stakes civil litigation to largely legal and business professionals. A Courtroom View Network will be in attendance, reporting on trial proceedings once during lunch breaks and again after the day is through.
Readers will need to register and subscribe. The cost for subscribing to the detailed reporting on the CVN blog is $9 per day or $25 for the whole trial. It begins Monday morning.
Click here to register and subscribe to the trial report.
Or use this web address: http://shopping.courtroomconnect.com/s.nl/it.A/id.1269/.f
This is the first time that a franchise news trade journal has arranged for hundreds and possibly thousands of franchisees and professionals to monitor a hearing. It is extremely unusual, not just for the franchise world, but also for any small business media.
Senior Researcher David Siegel of Courtroom View Network observes, “Using a ‘private’ reporter to cover a trial has long been a practice of major players like hedge fund firms that monitor big financial cases.” Siegel continues, “To have a group of middle-class franchisees band together and use the same tool is a story in and of itself.”
After the trial concludes, the proceedings and final ruling will be summarized on Blue MauMau.
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Related Reading:
- Over a Thousand Franchisees Demand to See Televised UPS Store Trial
- Mail Boxes Etc Franchisees Head to Trial with Crucial Exhibits in Hand
- UPS Denies Existence of Feasibility Study, Now Unsealed as Evidence
- Amos Exposes Insider Information in UPS Acquisition of MBE
MBE made a hugh mistake by agreeing to a Bench Trial. My Prediction is that UPS will win hands down. Don't be shocked that it was decided a Class Action could be filed.
The Judge will take care of all the claims at once. They might as well of gone to arbitration. The only chance a zee has is a Jury Trial, even Judges have thier faults
you obviously are not familiar with this case "mbe made a huge mistake" guest. The class action has been a part of this case from very early on. The class action is about the Mail Boxes Etc that converted during Gold Shield. The plantiff that have gotten their case to trial today are the Mail Boxes Etc that remained Mail Boxes Etc brand.
The class action has already been to the appellate court and sent back to the trial court ( Highberger) Highberger then ruled to certify the class. Discovery has just started on the class.
this is a bifucated trial. The issue of renew has been broken out from the rest of the trial. This is only Phase 1. Phase 2 are the trialable issues of facts which will be before a jury. I would bet this goes to appeal, which will benefit the plantiffs. They are confident that if the Judge follows the law that the Judge will rule in their favor.
what does bifucated mean-even thou i be kollege gradiate i doughut hear this verbage.
do you know how to google. google the term
google spell checks also
I suspect you're being sarcastic since it was spelled incorrectly. For those genuinely interested in knowing, "bifurcated" simply means the matter has been split into separate trials that will be heard independent from the other.
i really didn't know the meaning (however would have guessed right - in context). i did research the definition,but it was spelled incorrectly more than once!
UPS didn't agree to a bench trial. The issue on trial is about contract interpretation and because of that are issues of law. Judges rule of facts of law. Juries decide of issues of fact
You spell like my AF, so I'm guessing you are him.
Who cares what Hugh Jackman, Hugh Grant or Hugh Hefner thinks about this lawsuit?
CROOKS seldom can! You know, the HARDER they try to avoid DOING THE RIGHT THING and correct a WRONG (imagine THAT in today's Corporate America!), the WORSE THINGS GET!!! Sound familiar? We see it all the time! Now, what do I mean by WORSE? Financial penalty that may cost the Company not millions, but BILLIONS (when all is said and done, including losses to their "reputation") when they are sued by many former MBE franchisees, The Apollo Group, current The UPS Store franchisees, each of whom had franchise disclosure obligations NOT MET by the franchisor/UPS, government agencies such as the SBA who may demand REPAYMENT and PENALTIES for bad loans that resulted from UPS's "scheme", and probably many, many more lawsuits awaiting birth but not yet having shown up on "radar screen"! Criminal penalty if indeed anyone participated in FRAUDULENT ACTIVITIES, schemes like the use of inside information in the purchase of MBE Corporate in violation of SEC rules and regulations, and personal financial penalties that may very well confront UPS/MBE Corporate officers who participated in this (alleged) fraudulent scheme with (associated) LIES, mistruths that find you personally LIABLE and sued by many an aggrieved party. Oh, Mr. Escew, Kelly, Amos, Romanella, Stuey Mathis, and others best be prepared to answer some VERY HARD QUESTIONS, not only DEMANDED by the court and US Government, but also by the BOARD OF DIRECTORS of UNITED PARCEL SERVICE! Maybe you need to BRUSH UP YOUR RESUMES or worse, plan for an extended vacation in a (not so) 5-Star lockup! Don't worry, though! Panzies like you all will probably be sent to a "low security" lockup (maybe)! But hey, you can still make "FRIENDS" there! Well, let the trial begin, and if laws have been broken, let JUSTICE finally be served! All of this is ALLEGATION ONLY, the truth of which will be ajudicated in court! Many thanks to Amy, Miles, Maria, Howard, and all the other "fraud-fighters"! When you serve others, as you have done, rewards come in many forms, the least of which is monetary (although expect that too)! God bless you all! May you soon find success in your long and JUST legal fight with UPS, and I will CERTAINLY greet you all in court! As have you, so too shall I NOT LET THIS GO and take action TO THE VERY BEST OF MY ABILITY! If they are less than HALF yours, I will count myself blessed! Too many good and innocent people have been HURT by this, destroyed financially, and I will not let this stand!
Blue MauMau has received a couple of emails like the one below. This response is a viewpoint that is not often heard on Blue MauMau. Since the comment area and forums are open public discussion areas, we encourage the postings of all sorts of views about this case.
The name of the person and the store identification number in the email address is withheld.
If you don't care why are you wasting your time replying. Obviously, the truth must be hard to admitt sometimes. Remember the great philosopher Sacreties; the "truth" shall set you free. Truth is painfull, but a life of lies will eventually be uncovered. Lies, deception, fraud,or whatever you want to call it can only go on for so long before the covers blown. It's been proven over and over again. Justice usually prevails eventually. It's too bad UPS didn't want to promote but destroy its retail distribution arm. What could have been a great marriage may end in divorse. Who's realling cheating? It's not the stores if you understand the relationship and history of the merger. The MBE stores were doing great until UPS had to interfere for its own benefit. These stores were purchased my families with their hard working saved money. Many used retirement and equity loans from their homes to buy what was supposed to be a real franchise. Why doesn't UPS want this on Court TV. Before you blame the stores for whatever reason, agenda, or experience you may have had, get the facts. The facts will reveal the truth, not your unsubstantiated opinion. You must work for UPS promoting misinformation. The court should talk to a random UPS driver. They may not know too much about UPS corporate or about the stores but only what UPS tells them. All the drivers I met were educated that the UPS Stores were not owned by UPS and are like a large coporate customer. Another misstatement by UPS. Even though most stores are not corprately owned and operated, UPS is the franchisor but treats the stores with no more respect than any other individual or corporate account. The model is so broken, it's rediculous. Everything from pricing, costs, royalty fees, drop-off comp is for UPS and not the stores. You can't claim to be a franchisor on one hand, and compete on price to destroy the stores with the other. Let's call a spaid a spaid. UPS had no intention to help and grow the stores. It was and is a shame. This is unacceptable in any franchise or business. How long did UPS think it was going to get away with this. Did they really think that their lawyers and corporate capital was going to keep on dodging the reality. I think UPS is going to regret their actions when they have a few billion dollar settlement again them. They have milked honest owners from potentially having thriving businesses. I think it was a great and cheap buy for UPS by gaining volume and royaty fees immediately. If they can do all this analysis on delivering packages and wanting nothing to do with the stores by denying even the existance of Boston Consulting group study. The stores were waiting on recommendations from the study to turn them around. How dare they lie about. It's one of many lies but this one was in court. Bravo for the stores. These are great stores despite the way UPS has "browned" on them. The next time you ask, what can brown do for you?, be prepared. I don't think the stores signed up for this kind of treatment. I think they were misled or materially and intentionally misled into a bad franchise. Know the facts before you speak.
>>UPS is the franchisor but treats the stores with no more respect than any other individual or corporate account. <<
Unfortunately, the franchisee is treated with less respect. After all, any other individual or corporate account can always ship Fedex if they feel unloved. The Franchisee has no choice, they have to recomend the "UPS solution" even if it is the worst choice for the particular consumer need.
Call it unconscionable, diabolical or clever, UPS knew what they were doing when they forced the name over the door!
Ever UPS customer can "vote with their feet" and ship Fedex, except the captive UPS Store Operator!
Guest writes: "Remember the great philosopher Sacreties; the "truth" shall set you free" Umm... yes, "know the facts before you speak." In the interest of accuracy, I would point out that it was not "Sacreties" [sic] but Jesus who said: "Ye shall know the truth, and the truth shall make you free" (John 8:32, King James Bible). It is also engraved on the wall of the Central Intelligence Agency headquarters building in McLean, Virginia.
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
You beat me to the punch. I was furiously trying to remember Secreties in philosphy class....then realized that maybe it was indeed the "Secretaries" class that was being referenced.
To the blind poster that does'nt care, let me see if you have any neurons properly firing up there in that EMPTY space between your ears. Think you're not affected by UPS's scam? Well, THINK AGAIN!!! Lets see what happens when you go to sell your store (hopefully at a time of your chosing and NOT because you are bankrupt)! Prospective buyers will go around to other stores, talk to TUPSS owners (most of whom spit at the mention of UPS), read web sites like this, do their due dilligence, and guess what? They'll realize, as have many others who at one time considered buying a TUPSS, that it is worse than a BAD INVESTMENT , BUT A HORRIBLE ONE; one where you not only LOSE your $100,000 dollar (or more) plus LIFE SAVINGS (not to mention return on capital), but you get to work for NOTHING or PEANUTS! UPS is using YOU to service THEIR clientele!!! What clientele? INTERNET. CORPORATE ACCOUNTS. REVERSE LOGISTICS (look it up!). INDIVIDUAL ACCOUNTS. Their customers, you're LOST REVENUES! Then, if you do find a buyer, stand by. UPS will not only charge you TEN PERCENT (10%) of your store's sales price JUST TO SEND YOU A NAME (no supportive services for the sale), they will also pull one of their famous SITE INSPECTIONS and tell you to replace this, and that, and this...grand total, 10, 20, 30 70 (yes 70, ask a blue and white former MBE owner) THOUSAND DOLLARS! That's in addition to ALL OF THE NICKEL AND DIME (make that HUNDRED AND THOUSAND DOLLAR) transfer fees!!! Ask that buyer WHO GONA PAY ALL THAT $$$ !!!??? WILL YOU TAKE IT OFF THE ASKING PRICE? Can you say, THERE GOES YOUR PROFITS FROM THE SALE OF YOUR, WHAT, 10 or 15 or 20 years of hard work, life savings and effort (that is, if you make it past 2 years, which many won't, even after burning through tens-of-thousands of dollars in working capital, you know, things like retirement accounts, medical savings accounts, education funds, etc.)! OH, BUT NOT YOU! YOU'RE A SUCCESSFUL TUPSS OWNER, RIGHT? Well, mabey now, partially (if you are making some profit, the value of your store/location should have you doing substantially BETTER; better, that is, if UPS wasn't screwing you by using you as a talking/taping/smiling drop box! Oh, and how does the lost revenue from all those used-to-be paying (now drop-offs) customers affect the VALUE of your business??? BUT YOU GET A DOLLAR PER PACKAGE DROPPED OFF (not enough to pay the electric bill!)! Can you say...THERE GOES THE RESALE VALUE OF MY BUSINESS??? Didn't think of that, did you???!!! ONE MORE ITEM. A large part of MBE's growth/market was the oft talked about HOME OFFICE/TELECOMUTER. They used to PAY US to ship, pack, etc., often times using their CORPORATE CREDIT CARD! Mabey $150.00 for overnighting ( via FEDEX, UPS, DHL, USPS, etc.) their laptop...money that went into YOUR POCKET. Now what do you get? A walkin customer who asks for a UPS AIR WAYBILL to ship on their corporate account! You? Well, UPS gives you a ONE DOLLAR DROP OFF FEE! ONE DOLLAR! Try running a business on THAT! UPS? Oh, they make out like BANDITS (which is what Gold Shield has proven THEY REALLY ARE....BANDITS)! So, was UPS lieing when they said they were gona make all UPS Stores $ONE MILLION DOLLAR STR (yearly) stores, that once we lowered our prices to COUNTER RATES shipping business would NATURALLY FOLLOW, increasing per-store shipping volume??? YOU TELL ME!!! EBAY! A HOME OFFICE/TELECOMMUTER UPS ACCOUNT! COMPANY RETURNS! UPS CORPORATE ACCOUNT HOLDER DROP-OFF POINT! KINDA ADDS UP, DOESN'T IT...but NOT FOR YOU!!! And guess what? You take what (little) UPS offers you because YOU HAVE NO ONE REPRESENTING YOUR INTERESTS! UPS shut them folks (franchisee advisory councils) up, lest they gain a (cooperative/powerful) voice...for the FRANCHISEE! So, my friend, as a person that often posts here (on Bluemaumau) says...DRINK THAT KOOLAIDE!!! But if you think UPS is mixing LEMONAIDE, think again! What they are forcing down your throat is a big, fat, losing LEMON!!! P.S. Can you say ANTI-COMPETITIVE PRACTICES WHEN THEY MADE US A UPS-ONLY (shipping-wise) STORE WITH GOLD SHIELD, DRIVING OUT ALL COMPETITORS FROM WHAT ONCE WAS A MULTI-CARRIER SHIPPING FRANCHISE...something they said they would not do??? Where is a Teddy Roosevelt-type leader protecting American business's FAIR COMPETITIVE/NON-MONOPOLISTIC traditions/LAWS when you need him!!! Probably intercepted by UPS and instead making a DEPOSIT at the bank, maybe to the tune of, say, 500,000 dollars (like AMOS)!!!
I understand how it is to drink the Kool-aide. I hope the zees win in court. It will be a happy day. All zees have the right to be angry. Misrepresentations all over. Turning and churning and everything an evil zor could do.
It looks to me like that might be one of the idiot DFW store owners.
Geesh, they can't post it themselves anonymously?
In regards to the person who wrote the email, and I hope you respond to this. Your question was:
"who cares about these people who could not operate their business in a successful manner"?
Do you mean the guys in this interview who were awarded "franchisees of the year"
http://talkinship.com/?p=20
keep in mind, anyone could have sent that message and it might even be a bogus store number or a store owned and operated by an area franchisee who has reason to defend UPS! Then it could be a bonafide kool aid drinking store operator who has not yet seen the reality of the situation!
...not because of anything they did (or did NOT) do, but rather because they were LIED TO about a rebranding and associated business model that effectively DESTROYED many a successful store(s)! Some people call that FRAUD! Or maybe you think that a (hidden) study that shows a 77% failure/at risk rate for a once healthy, prosperous and growing network (Boston Consultants) a stab at fair play by UPS!!! Also, do not think for one moment that UPS, with it's vast accounting/marketing/research/planning resources DID NOT KNOW this information on the expected failure rate for UPS Stores prior to the whole Gold Shield/The UPS Store strategy and grand scheme to defraud thousands of franchisees out of their hard-won businesses! Well, this "poster" has every right not to give a damn about others problems! I am sure he has many of his own, probably brought about by a lack of empathy for others! That's OK, because I have SYMPATHY for him/her ... I hope this person someday learns that the world revolves around MANY PEOPLE, NOT JUST HIM!!! You probably also took the sides of Enron, Worldcom, Madoff, and a host of other CROOKS, didn't you! SURVIVAL OF THE CROOKEDEST! Our nation needs more people just like YOU (NOT!)!
There are many UPSS that just love that koolaid.
The issue in the bifucated trial is that we are not being allowed to operate our successful business as MBE's and are being forced to operate them as "at risk" UPSS or walk away from what we bargained for in our franchise agreements.
This abbreviated trial is to determine whether or not the Mail Boxes Etc. franchisees had the right to renew as Mail Boxes Etc. branded outlets. However, there is a class action component attached which involves the misrepresentation that induced thousands to defect the brand and go to the UPS Store brand, a brand that denotes a shipping outlet as opposed to full mail receiving, multi carrier shipping and business services center!
So, the issues are somewhat intertwined.
I thought this was the Mail Boxes Etc brand trial.
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