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On House Syndication, Inc. v. Federal Express Corp.

Citation: 79 F. App'x 247Docket: No. 02-56158, 02-56234. D.C. No. CV-99-01336-RMB(JFS), CV-99-01336-RMB

Court: Court of Appeals for the Ninth Circuit; September 3, 2003; Federal Appellate Court

Narrative Opinion Summary

In a case involving FedEx and its customers, the primary legal issues revolved around the interpretation and application of FedEx’s Service Guide and the force majeure clause during a UPS strike. FedEx issued a press release on July 31, 1997, indicating that it would not offer money-back guarantees amid the strike, which the court interpreted as invoking the force majeure clause. Consequently, FedEx was found not to have breached the Money-Back Guarantee provision, leading to a reversal of the judgment favoring the plaintiffs on this claim. Additionally, the court upheld the district court's ruling in favor of FedEx on the Excess Charges claim, affirming that the plaintiffs failed to comply with the Service Guide's notice requirements for invoice adjustments within the specified timeframe. The court found that the language of the Service Guide implied mandatory compliance for pursuing legal action. The court's decision resulted in a partial reversal and affirmation of the lower court's rulings, with each party ordered to bear its own costs on appeal. The disposition was deemed non-publishable under Ninth Circuit Rule 36-3.

Legal Issues Addressed

Compliance with Service Guide Notice Requirements

Application: Plaintiffs' failure to adhere to the Service Guide's notice requirements for invoice adjustments barred their claims.

Reasoning: Plaintiffs failed to comply with the Service Guide's notice requirements for invoice adjustments, which must be made within one year of shipment.

Force Majeure Clause in Contractual Agreements

Application: FedEx's invocation of the force majeure clause relieved it from obligations under the Money-Back Guarantee during the UPS strike.

Reasoning: This communication was interpreted as invoking the force majeure clause, thereby relieving FedEx from its obligations under the Money-Back Guarantee during the strike.

Interpretation of Service Guide Provisions in Legal Disputes

Application: The court determined that the mandatory language of the Service Guide implied that compliance was necessary for legal action.

Reasoning: Despite Plaintiffs' argument that the Service Guide did not explicitly require compliance for court actions, the court found that the mandatory language implied such compliance was necessary.

Judgment on Costs and Publication of Disposition

Application: Each party was ordered to bear its own costs on appeal, and the disposition was designated as non-publishable.

Reasoning: Each party was ordered to bear its own costs on appeal, and the disposition was designated as non-publishable under Ninth Circuit Rule 36-3.