Solo v. United Parcel Serv. Co.

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An individual and a company filed a putative class action suit alleging that United Parcel Service (UPS) overcharges customers for liability coverage against loss or damage for packages with a declared value of $300 or more. The complaint alleged breach of contract; sought declaratory relief (28 U.S.C. 2201); claimed violation of 49 U.S.C. 13708(b) (regulating billing and collecting practices for motor carriers); and, in the alternative, alleged unjust enrichment. The district court dismissed, agreeing with UPS that the language of the shipping contract at issue unambiguously precluded the plaintiffs’ interpretation. The Sixth Circuit affirmed with respect to 49 U.S.C. 13708(b), but reversed the dismissal of the remaining claims. Reasonable minds could differ on the correct interpretation of UPS’s Service Guide provision; the provision is at least ambiguous, so its meaning is a question of fact that is not properly answered by the court at this early stage in the proceedings. An unjust enrichment claim—that a benefit was unjustly conferred on UPS when customers paid an extra charge on packages despite UPS’s representations that it provided a portion of this service for free—is not precluded by his breach of contract claim. View "Solo v. United Parcel Serv. Co." on Justia Law