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Court Certifies UPS Class-Action Suit
Class Action | 2007/10/19 08:54

A California appeals court has reversed a decision blocking Mail Boxes Etc. franchisees from proceeding with a class-action lawsuit against UPS Inc., a group representing the franchisees said Friday. In a 21-page decision, the state appeals court ruled that the Los Angeles County Superior Court was wrong in denying a motion to certify a class action in the case.

Platinum Shield Association, a group that represents current and former franchisees seeking class-action status, alleges that the shipping company intentionally misled store owners into believing a new concept - The UPS (nyse: UPS - news - people ) Store - would be more profitable than their existing stores.

UPS acquired the Mail Boxes Etc. chain in 2001 and later renamed most of the stores as The UPS Store.

A copy of the decision was provided to The Associated Press by the group.

"This is a huge win for our organization," Howard Spanier, president of the association and a former franchisee, said in a statement. Spanier said franchisees were not given adequate information about the rebranding, which he said was "unavoidable and disastrous for many."

Franchisees involved in the suit are seeking damages and the chance to rescind their UPS Store contracts, the group said.

A call seeking comment from Atlanta-based UPS was directed to an attorney involved with the case. A voicemail message was not immediately returned.



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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet.
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