Federal Express Corp. v. United States Postal Service

40 F. Supp. 2d 943, 1999 U.S. Dist. LEXIS 11312, 1999 WL 137849
CourtDistrict Court, W.D. Tennessee
DecidedMarch 10, 1999
DocketCV 96-3151 DA
StatusPublished
Cited by11 cases

This text of 40 F. Supp. 2d 943 (Federal Express Corp. v. United States Postal Service) is published on Counsel Stack Legal Research, covering District Court, W.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Express Corp. v. United States Postal Service, 40 F. Supp. 2d 943, 1999 U.S. Dist. LEXIS 11312, 1999 WL 137849 (W.D. Tenn. 1999).

Opinion

ORDER DENYING DEFENDANT’S MOTION TO DISMISS

DONALD, District Judge.

Before this court is Defendant’s, United States Postal Service, Rule 12(b)(6) motion to dismiss Plaintiffs, Federal Express Corporation, complaint for failure to state a claim upon which relief can be granted. Plaintiff alleges that Defendant violated Section 43 of the Lanham Act, 15 U.S.C. §§ 1051-1127, by disseminating false and misleading advertising concerning the characteristics of its Priority Mail and Global Priority Mail services. More specifically, Plaintiff alleges that Defendant violated the 15 U.S.C. § 1125(a) by 1) *946 falsely representing its delivery service as an express service comparable to that offered by the Plaintiff, 2) misrepresenting the price of FedEx 2Day, an express service offered by the Plaintiff, and 3) falsely advertising itself as a private commercial entity which offers delivery service “around the world.” Plaintiff avers that consumers have been and are likely to be misled by these false advertisements. Plaintiff further avers that these false advertisements have caused irreparable harm to its business, reputation and goodwill. To remedy these alleged harms, Plaintiff requests that 1) Defendant compensate Plaintiff for all profits obtained by the Defendant through the misleading advertising campaign; 2) Defendant pay Plaintiff treble damages for all harm suffered on account of the misleading advertising; 3) Defendant reimburse Plaintiff for all costs incurred as a result of the misleading advertising, including corrective advertising costs; and 4) Defendant deliver to the Plaintiff all items bearing the misleading representations. Plaintiff also requests this court to 1) issue preliminary and permanent injunctions prohibiting Defendant from continuing to use these misleading advertisements, and 2) direct Defendant to file a report detailing all measures taken to comply with the injunction within thirty days of the court’s injunction.

Defendant contends that Plaintiffs complaint fails to state a claim and should be dismissed pursuant to Rule 12(b)(6). In support of this contention, Defendant argues that 1) Plaintiffs complaint fails to plead the facts underlying its allegations of a Lanham Act violation with sufficient particularity, 2) the alleged statements of misrepresentation are not material and therefore not actionable under the Lanham Act, 3) Defendant’s representation of itself as a “company” which “delivers around the world” was a statement of puffery and therefore not actionable under the Lanham Act, and 4) Defendant’s comparison between its delivery services and those of Plaintiff is not actionable under the Lan-ham Act because the statements were true and Defendant did not have a duty to disclose all the differences between its delivery service and that of Plaintiff.

For the following reasons, the court denies Defendant’s Rule 12(b)(6) motion to dismiss Plaintiffs complaint for failure to state a claim upon which relief can be granted.

I. FACTS

Plaintiff is a private corporation organized under the laws of Delaware and having its principal place of business in Memphis, Tennessee. (Pl.’s Compl. ¶ 1). Its principal business is the door-to-door express delivery of documents, packages and freight throughout the United States and the world via a complex, integrated air ground transportation system. Currently, Plaintiff delivers an average daily volume of approximately 2,500,000 packages per day. (Pl.’s Compl. ¶ 6). Plaintiffs delivery business features door-to-door delivery, time and day delivery commitments, package status tracking, a money-back guarantee for on-time delivery and a second guarantee for package status tracking, evening package drop-off facilities across the country, a network of over 500 airplanes owned or operated by Plaintiff, over 37,000 land vehicles such as trucks and vans, and over 40,000 retail locations for customer access and other feature. (Pl.’s Compl. ¶ 7). FedEx 2Day, one of the express delivery services offered by Plaintiff, provides customers with two-day committed delivery directly to the recipients. (Pl.’s Compl. ¶ 8). Defendant also offers a delivery service entitled Global Priority Mail which delivers to countries outside the United States. (Def.’s Mem. In Supp. of Mot. to Dismiss p. 4).

Defendant is an independent establishment of the executive branch of the United States Government. (Pl.’s Compl. ¶ 2). Defendant provides mail services to the general public, consisting of pickup and delivery of documents and parcels. (Pl.’s Compl. ¶ 9). Defendant also offers expedited mail delivery services for customers *947 willing to pay an additional amount of postage. (PL’s Compl. ¶ 9). One of these services, called Priority Mail, claims to provide mail delivery in two to three days measured from Post Office to Post Office. (PL’s Compl. ¶ 9).

Defendant commenced an advertising campaign to promote the use of Domestic Priority Mail in March, 1996 and an advertising campaign to promote the use of Global Priority Mail in April, 1996. (Def.’s Mem. In Supp. of Mot. to Dismiss p. 4). In its advertising campaign for Priority Mail, Defendant compares certain features of Priority Mail delivery service and FedEx 2Day express service, including the alleged prices of the services. (PL’s Compl. ¶ 10). Plaintiff alleges that these advertisements are false and misleading because they suggest that Priority Mail is equivalent or superior to Plaintiffs express service, FedEx 2Day. (PL’s Compl. ¶¶ 10,12). Plaintiff alleges that the advertising campaign’s descriptions of many of the features of Priority Mail and FedEx 2Day, including the price of FedEx 2Day, are false and misleading. (PL’s Compl. ¶ 10). Plaintiff also alleges that Defendant’s advertising campaign promoting Global Priority Mail is also false and misleading because the advertisements state that Defendant is a company which delivers around the world. (PL’s Compl. ¶ 13). Plaintiff alleges that this statement is false because Defendant is not a company and it does not deliver around the world. (PL’s Compl. ¶ 13).

II. STANDARD

Rule 12(b)(6) of the Federal Rules of Civil Procedure enables a defendant to file a motion to dismiss for a plaintiffs failure to state a claim upon which relief can be granted. Motions to dismiss under Rule 12(b)(6) are designed to test “whether a cognizable .claim has been pleaded in the complaint.” Scheid v. Fanny Farmer Candy Shops, Inc., 859 F.2d 434, 436 (6th Cir.1988). Dismissal of a complaint for failure to state a claim streamlines litigation by “dispensing with needless discovery and factfinding.” Neitzke v. Williams, 490 U.S. 319, 326-27, 109 S.Ct. 1827, 104 L.Ed.2d 338 (1989).

Dismissal under Rule 12(b)(6) is appropriate where there is no set of facts which would entitle the plaintiff to recover. Hammond v. Baldwin, 866 F.2d 172, 175 (6th Cir.1989).

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Bluebook (online)
40 F. Supp. 2d 943, 1999 U.S. Dist. LEXIS 11312, 1999 WL 137849, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-express-corp-v-united-states-postal-service-tnwd-1999.