UPS Defends Right to Change MBE at Trial
BREAKING: LOS ANGELES - Correspondent Cynthia Cohen, Ph.D., of Courtroom View Network, reported on the wrap up of the first day of trial in the Morgate v United Parcel Services, recapping the remainder of franchisee attorney Michael Aguirre’s opening statement that UPS was “stringent in their enforcement of doing business their way.” He stated that the Mail Boxes Etc. brand was destroyed in that effort, and asked if UPS had the right to destroy the brand. But the opening statement from defense attorney Mark McDonald countered that argument, saying that from the beginning MBE made it very clear to the franchisees that it would make changes as necessary. He said UPS could not forecast 10 years earlier what the mark may change to.
When Judge William Highberger interjected, “In your interpretation of the agreement, is there any limit on what the franchisor can do at the time of renewal?” McDonald answered, “No, they could have said we want to get out of this business and refuse to offer any more franchises if they wanted.” He gave two issues with regard to the interpretation of the contract: How the court interprets the express terms; and implied covenant of good faith and fair dealing. McDonald stated, “Good faith is not the issue…the issue is how the court interprets the document/the express terms of the contract.”
The judge gave what he thought was the best points of the defense. He said if the deal offered at the end of the ten year term is being offered to others, it would be offered to them as well. They didn’t promise anything more than that. Defense did a nice job of making a real simple proposition.
To read Aguirre’s rebuttal and Cynthia Cohen’s full detailed report on the court proceedings, click on Courtroom View Network. As she sits in on the hearing each day she then blogs about it during lunch and at the end of each trial day in Los Angeles. ($25 subscription fee required to have access to all of the blogs)
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