FedEx not liable for money-back charges during Teamster strike

FedEx not liable for money-back charges during Teamster strike    The Ninth Circuit Court of Appeals affirmed in a decision Sept. 4 that Federal Express Corp. was not liable for refunds on transportation charges for shipments delayed during the 1997 strike between the International Brotherhood of Teamsters and United Parcel Service.
   The appeals court overturned an earlier decision by the federal district court in San Diego, Calif., that ruled FedEx was liable for the refunds. It was estimated that FedEx would have had to pay out as much as $70 million to satisfy the class action lawsuit.
   “We are grateful that the Ninth Circuit Court of Appeals recognized that there was no wrong committed by FedEx and that a class action in this instance and award of damages had no basis,” said Kenneth R. Masterson, FedEx’s executive vice president and general counsel, in a statement Sept. 5.
   FedEx said at the time of the strike it had clearly stated in its service guide that money-back guarantees do not apply to delays caused by strikes. During the 26-day strike between the Teamsters and UPS, FedEx absorbed a substantial increase in freight volumes.