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News Briefs
CA Court Rules in Favor of UPS
On June 21, 2010, the Los Angeles Superior Court granted a motion by UPS and Mail Boxes Etc. (“MBE”) for summary judgment against a certified class of about 3,000 franchisees who converted their MBE franchises to become The UPS Stores. Although the ruling in Morgate LLC v. Mail Boxes Etc., Inc. can be appealed, it represents a significant victory for UPS in litigation that began more than seven years ago (see FBLA, May 2010).
“This ruling is a complete victory for MBE and UPS and concludes the class litigation brought by the franchisees who converted to The UPS Store,” said a spokesperson for UPS. “The court rejected claims that The UPS Store business model was flawed or was not viable. Further, the court determined that the class could not prove their claims challenging the manner in which MBE introduced The UPS Store model to franchisees, and therefore did not allow the claims to go to trial.
“MBE and UPS are confident that, if the class plaintiff decides to file an appeal, the appellate court will agree with the trial judge that there is no merit to the class claims,” the spokesperson added.
Joe Wightman, president of the Platinum Shield Association, the affiliation of former MBE franchisees who did not convert to the UPS brand, said that Platinum Shield's lawsuit in the same court is unaffected by the ruling. “Also, consistently demonstrated is that the Court of Appeal overturns in our favor,” Wightman said.
Oil Spill Outrage Having Little Effect on BP Dealers
Consumer outrage over British Petroleum's oil spill off the coast of Louisiana has spurred calls for boycotts of BP gas stations and vandalism at a few gas stations, but the impact to date has been very small, according to BP and dealer representatives. BP has about 11,000 dealer gas stations in the United States; some are branded BP, and some are branded ARCO or ampm.
Dealers cited in news reports indicate that sales volumes are down a few percentage points, but BP spokesman Scott Dean would not comment on sales figure in an e-mail exchange with FBLA. He did explain the programs that BP is offering to help its dealers during the crisis. “The response package includes volume allowances and reduction in credit card fees,” he wrote. Independent news reports indicate that the volume discounts are 1-2 cents per gallon, though Dean would not confirm that figure.
BP also is rolling out a marketing and advertising campaign that includes the slogan “Locally Owned, Locally Operated,” and it is offering additional support for dealers, such as point-of-purchase signage, radio spots, and postcard mailings, said Dean.
“We've had some success in turning around hostility towards BP and showing that the gas stations and convenience stores are locally owned and operated, by using the signage provided by BP,” said John G. Kleine, executive director of the BP Amoco Marketers Association. “It's been proven to be reasonably effective, at least anecdotally.”
However, Kleine said that distributors have experienced sales losses “in the single digits, below 10%,” with dealers in the Gulf Coast area at the higher end of that range. That's a significant setback for a low-margin business that relies on volume. “The question that hasn't been answered to this point is when recovery of sales will occur, or the probability of a recovery,” he said.
Kleine said that BP has been communicating with distributors about the need for a campaign to improve the brand image, but that he feels the situation is “still a time for crisis management, and the time to rebuild the brand won't occur until attention has moved from the oil well.”
The largest protests have been organized by SeizeBP.org, a citizen group that is promoting seizure of BP's assets to ensure that Gulf Coast cleanup and compensation will be completed. SeizeBP.org has organized more than 50 demonstrations at federal buildings and BP stations around the nation, but the protests peaked in mid-June, about two months after the April 20 explosion. “The nature of our work has shifted,” said a representative of SeizeBP.org. “Our focus now is on the different components of the $20-billion escrow fund and on BP's misconduct related to media coverage. We are working on educating the public that the escrow fund doesn't mean that we have 'won.' There should not be a cap on damages when so much is unknown ' Also, paid claims so far have averaged about $3,000, which is obviously not full compensation for a ruined livelihood.”
The SeizeBP.org representative added that the organization does not favor boycotts of BP dealers. “We've had demonstrations at federal buildings, when possible, and only at BP stations when a federal building has not been located in the city,” she said. “Our Web site makes it clear that we do not believe that a boycott will be effective in providing relief for the tens of thousands of families in the Gulf Coast who have been harmed, nor for the cleanup of the environment that is being poisoned.”
CA Court Rules in Favor of UPS
On June 21, 2010, the Los Angeles Superior Court granted a motion by UPS and Mail Boxes Etc. (“MBE”) for summary judgment against a certified class of about 3,000 franchisees who converted their MBE franchises to become The UPS Stores. Although the ruling in Morgate LLC v. Mail Boxes Etc., Inc. can be appealed, it represents a significant victory for UPS in litigation that began more than seven years ago (see FBLA, May 2010).
“This ruling is a complete victory for MBE and UPS and concludes the class litigation brought by the franchisees who converted to The UPS Store,” said a spokesperson for UPS. “The court rejected claims that The UPS Store business model was flawed or was not viable. Further, the court determined that the class could not prove their claims challenging the manner in which MBE introduced The UPS Store model to franchisees, and therefore did not allow the claims to go to trial.
“MBE and UPS are confident that, if the class plaintiff decides to file an appeal, the appellate court will agree with the trial judge that there is no merit to the class claims,” the spokesperson added.
Joe Wightman, president of the Platinum Shield Association, the affiliation of former MBE franchisees who did not convert to the UPS brand, said that Platinum Shield's lawsuit in the same court is unaffected by the ruling. “Also, consistently demonstrated is that the Court of Appeal overturns in our favor,” Wightman said.
Oil Spill Outrage Having Little Effect on BP Dealers
Consumer outrage over British Petroleum's oil spill off the coast of Louisiana has spurred calls for boycotts of BP gas stations and vandalism at a few gas stations, but the impact to date has been very small, according to BP and dealer representatives. BP has about 11,000 dealer gas stations in the United States; some are branded BP, and some are branded ARCO or ampm.
Dealers cited in news reports indicate that sales volumes are down a few percentage points, but BP spokesman Scott Dean would not comment on sales figure in an e-mail exchange with FBLA. He did explain the programs that BP is offering to help its dealers during the crisis. “The response package includes volume allowances and reduction in credit card fees,” he wrote. Independent news reports indicate that the volume discounts are 1-2 cents per gallon, though Dean would not confirm that figure.
BP also is rolling out a marketing and advertising campaign that includes the slogan “Locally Owned, Locally Operated,” and it is offering additional support for dealers, such as point-of-purchase signage, radio spots, and postcard mailings, said Dean.
“We've had some success in turning around hostility towards BP and showing that the gas stations and convenience stores are locally owned and operated, by using the signage provided by BP,” said John G. Kleine, executive director of the BP Amoco Marketers Association. “It's been proven to be reasonably effective, at least anecdotally.”
However, Kleine said that distributors have experienced sales losses “in the single digits, below 10%,” with dealers in the Gulf Coast area at the higher end of that range. That's a significant setback for a low-margin business that relies on volume. “The question that hasn't been answered to this point is when recovery of sales will occur, or the probability of a recovery,” he said.
Kleine said that BP has been communicating with distributors about the need for a campaign to improve the brand image, but that he feels the situation is “still a time for crisis management, and the time to rebuild the brand won't occur until attention has moved from the oil well.”
The largest protests have been organized by SeizeBP.org, a citizen group that is promoting seizure of BP's assets to ensure that Gulf Coast cleanup and compensation will be completed. SeizeBP.org has organized more than 50 demonstrations at federal buildings and BP stations around the nation, but the protests peaked in mid-June, about two months after the April 20 explosion. “The nature of our work has shifted,” said a representative of SeizeBP.org. “Our focus now is on the different components of the $20-billion escrow fund and on BP's misconduct related to media coverage. We are working on educating the public that the escrow fund doesn't mean that we have 'won.' There should not be a cap on damages when so much is unknown ' Also, paid claims so far have averaged about $3,000, which is obviously not full compensation for a ruined livelihood.”
The SeizeBP.org representative added that the organization does not favor boycotts of BP dealers. “We've had demonstrations at federal buildings, when possible, and only at BP stations when a federal building has not been located in the city,” she said. “Our Web site makes it clear that we do not believe that a boycott will be effective in providing relief for the tens of thousands of families in the Gulf Coast who have been harmed, nor for the cleanup of the environment that is being poisoned.”
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Stranger to the Deed Rule
In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.