CVN Gives Final Overview of UPS Trial

LOS ANGELES – As a summary of this week’s trial in Morgate v United Parcel Services, Cynthia Cohen, Ph.D. said in her final report on Courtroom View Network that she generally observes how juries psychologically view the issues rather than determine interpretation of the law. “I’m not giving legal advice, nor do I practice law,” she explained. But she gave her observations after sitting in the courtroom for two days, reporting on the events as they unfolded.

As the trial began on Monday morning, Cohen said the courtroom was filled with franchisees and their attorneys from two law firms in San Diego (Aguirre, Morris & Severson LLP and Gordon & Rees). She said many of the franchisees wore their UPS shirts. "Judges are people too and the effect of the roomful of plaintiffs was not missed by the judge nor anyone in the courtroom,” Cohen reported. She said it was apparent that these grassroots franchisees have their livelihoods tied up in this case, but stated, “While this case touches their lives and emotions, the judge will be focused on the law, not the facts.”  UPS had two attorneys from Morrison & Foerster LLP representing the franchisor.

Her report briefly reviewed the issues of the legal dispute pertaining to the franchise renewal contract not being as favorable to franchise owners of Mail Boxes Etc. and The UPS Store as the MBE agreement in 1993. Differences focused on certain aspects of the contracts, mainly dealing with exclusive territory, transfer rights and pricing. Cohen said the question is, what did the franchisees believe they were agreeing to in the renewal contract? She said, “In interpretation of the law, it does not matter that the renewal contract was not as favorable as the 1993 contract. What does matter is whether the franchisees understood that the new contract is not as favorable as the 1993 contract."

Again, viewers are invited to read the full report by Cynthia Cohen on Courtroom View Network ($25 subscription fee required to have access to all of the blogs).

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