FedEx sues, then cuts ties with delivery contractor Patton

Author of the article: LOS ANGELES — FedEx Corp on Friday filed suit asking a federal judge to stop one of its largest delivery contractors from spreading misinformation about its business for financial gain, and confirmed that it severed its relationship with him, effective immediately. FedEx’s lawsuit seeks injunctive relief and monetary damages from a…
FedEx sues, then cuts ties with delivery contractor Patton

Author of the article:

LOS ANGELES — FedEx Corp on Friday filed suit asking a federal judge to stop one of its largest delivery contractors from spreading misinformation about its business for financial gain, and confirmed that it severed its relationship with him, effective immediately.

FedEx’s lawsuit seeks injunctive relief and monetary damages from a “coordinated and multi-faceted campaign orchestrated” by Spencer Patton, who has 225 FedEx Ground routes in 10 states as well as businesses that offer services to the roughly 6,000 U.S. contractors that transport and deliver packages for that unit.

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Patton for weeks has said that up to 35% of FedEx Ground delivery providers are at risk of financial failure. He urged its leaders to improve compensation and has been rallying peers to his cause.

Patton did not address the merits of the case and went public with the termination of his relationship with FedEx, saying the company’s “move to cancel our contracts is a clear case of (it) silencing anyone with a voice.”

FedEx said the affected routes account for less than 0.5% of Ground’s 60,000 routes and that contingency plans are in place.

In its lawsuit, FedEx alleged that Patton is disparaging its Ground business through a series of false and misleading statements about its commercial activities.

FedEx says the escalating conflict is harming its business and forcing it to spend money on damage control.

Unfavorable news coverage stemming from Patton’s campaign could harm Ground’s reputation with the shippers that pay it to deliver packages and to erode goodwill within the contractor network, FedEx alleged in its complaint filed in the U.S. District Court for the Middle District of Tennessee.

FedEx alleged that Patton’s actions are a promotional campaign for his company that offers consultancy, brokerage, and other services to delivery providers.

Patton is seeking to position his firm as the industry leader in providing consultancy and other services to contractors, representing them individually or in collective negotiations with FedEx Ground, FedEx alleged.

And, the company said, Patton has obliquely encouraged actions that could disrupt its crucial Christmas delivery business.

At a conference hosted by his business last weekend, Patton said that if terms of his contract were not adjusted, he would shutter his FedEx Ground contracting business on Nov. 25, the start of the holiday shipping season.

Although Patton “claimed to be speaking ‘only on behalf of (his) individual businesses,’ he was plainly attempting to influence a group walk-out or boycott,” FedEx said in the lawsuit. (Reporting by Lisa Baertlein in Los Angeles; Editing by David Gregorio and Kenneth Maxwell)

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Sweden to offer $23 bln in liquidity guarantees to energy firms
Read More

Sweden to offer $23 bln in liquidity guarantees to energy firms

Author of the article: STOCKHOLM — Sweden aims to offer 250 billion Swedish crowns ($23.23 billion) in liquidity guarantees to energy firms that would last until March next year to help avert a financial crisis, Finance Minister Mikael Damberg said on Sunday. Without government’s guarantee, electricity producers could have ended up in “technical bankruptcy” on…
Dollar sinks below 132 yen as traders boost recession bets
Read More

Dollar sinks below 132 yen as traders boost recession bets

Author of the article: Reuters Saikat Chatterjee LONDON — The U.S. dollar declined to its lowest level in more than six weeks against the Japanese yen on Monday as investors ramped up bets that aggressive Federal Reserve monetary policy would tip the economy into a recession. With traditional market gauges of recession such as yield…
Biden talks to Walmart, UPS, Target, other CEOs on supply issues
Read More

Biden talks to Walmart, UPS, Target, other CEOs on supply issues

Author of the article: WASHINGTON — President Joe Biden spoke on Tuesday with the chief executives at Walmart Inc, United Parcel Service Inc, FedEx Corp and Target Corp to discuss speeding up deliveries and lowering prices for consumers, according to a White House official. “During the conversations, President Biden received updates from these private-sector leaders…
When bad news sounds good
Read More

When bad news sounds good

Author of the article: (Repeats to add story code, no changes to text) A look at the day ahead in markets from Anshuman Daga After a strong set of mostly upbeat earnings reports from both sides of the Atlantic last week, stock bulls will now want macro data to disappoint. While the Fed has hiked…