Morris v. Runyon

870 F. Supp. 362, 1994 U.S. Dist. LEXIS 16688, 1994 WL 669838
CourtDistrict Court, District of Columbia
DecidedNovember 18, 1994
DocketCiv. A. 94-2098 (GK)
StatusPublished
Cited by10 cases

This text of 870 F. Supp. 362 (Morris v. Runyon) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morris v. Runyon, 870 F. Supp. 362, 1994 U.S. Dist. LEXIS 16688, 1994 WL 669838 (D.D.C. 1994).

Opinion

MEMORANDUM-OPINION

KESSLER, District Judge.

I. Introduction

This ease, brought by six stamp collectors and one stamp dealer against the United States Postal Service, involves a dispute over the fate of a postage stamp prepared by the Postal Service to commemorate Bill Pickett, a famous African-American cowboy. The Postal Service had intended to issue the stamp as part of its commemorative stamp program, in a 20-stamp sheet depicting American western celebrities and themes titled “Legends of the West.” A few months before the Legends of the West stamps were scheduled to be officially distributed, the Postal Service discovered that the stamp featured a picture of Bill Pickett’s brother rather than of Bill Pickett himself. Although the Postal Service recalled all of the stamps before their official release date, it soon learned that about 183 Legends of the West sheets containing the incorrect picture of Bill Pickett had been sold to private hands. Understandably, this very rare stamp quickly became a valuable item in the philatelic — or stamp — community and market.

Plaintiffs claimed that because they believed, based on a press release issued by Defendants, that the 5.2 million stamps bearing the same incorrect picture would be shortly destroyed by the Post Office, they invested between $2500 and $4700 to purchase the stamp. Nonetheless, to Plaintiffs’ dismay, when the Postal Service learned that 183 stamps had escaped its recall, it changed its mind and decided to release 150,000 more of the stamps in order to “give everyone a chance to own a collectible.” The release of these additional stamps will make Plaintiffs’ stamps less rare, and, consequently, less valuable on the stamp market. Plaintiffs bring this lawsuit to prevent that result.

II. Procedural History

On September 29,1994, Plaintiffs filed Motions for a Temporary Restraining Order and a Preliminary Injunction in this action. In these Motions, Plaintiffs requested that this Court enjoin the Defendants from selling or issuing the Legends of the West Pickett Error stamp sheets (“Pickett Error Sheets”); declare that the sale or issuance of those stamps violates the United States Constitution as well as the United States Postal Service (“Postal Service”) regulations; and order the Defendants to destroy all remaining Pickett Error Sheets.

On September 30, 1994, the parties entered into a Joint Stipulation, approved by the Court, in which the Plaintiffs agreed that the Defendants may proceed with all of their plans to identify the orders to be fulfilled for the Pickett Error Sheets and to prepare to fulfill the orders. Defendants agreed that they would not sell, distribute, or transfer title to the Pickett Error Sheets until December 1, 1994, as the Postal Service had previously set for distribution of the Sheets. The parties further agreed that the Joint Stipulation would not affect any of the Postal Service’s plans to identify and to prepare to fulfill Pickett Error Sheet orders. Finally, the parties agreed that the hearing on Plaintiffs Preliminary Injunction on October 28, 1994 would also serve as the final hearing on the dispositive motion and merits of this case.

Accordingly, this matter is now before the Court upon Plaintiffs’ Motions for Temporary Restraining Order and Preliminary Injunction, and Defendants’ Motion to Dismiss, or, in the Alternative, for Summary Judgment.

For the reasons stated below, Plaintiffs’ Motions for Temporary Restraining Order and Preliminary Injunction should be denied, *365 and Defendants’ Motion to Dismiss should be granted. 1

III. Statement of Facts 2

Plaintiffs include six stamp collectors and one stamp dealer. Complaint, ¶¶ 2-8. Plaintiffs are all owners of a stamp called the “Pickett Error” stamp. They each paid between $2500 and $4700 for the “Legends of the West” sheet of stamps containing this stamp. 3 Defendants include the United States Postal Service (“Postal Service”), Sam Winters, Chair of the Board of Governors of the Postal Service, and Marvin Runyon, Postmaster General. Complaint, ¶¶ 9-11.

Defendant Postal Service was established by the Postal Reorganization Act of 1970, Pub.L. 91-875, 84 Stat. 719 (August 12,1970) (codified at Title 39, United States Code), as an independent entity of the United States Government responsible for providing postal service throughout the country. 39 U.S.C. §§ 101(a), 201. Among its many functions, the Postal Service is authorized to “provide and sell postage stamps and other stamped paper, cards, and envelopes”, to provide “special[,] 4 nonpostal, or similar services”, and “to provide philatelic services”. 5 39 U.S.C. § 404(a). Pursuant to these provisions, the Postal Service markets postage stamps and other philatelic products.

Each year, the Postal Service issues approximately 40 to 41 billion stamps, of which nine billion are specially designed to honor and recognize events, people, and places that pertain to the cultural heritage of the United States. Declaration of Azeezaly S. Jaffer (Hereinafter, “Jaffer Dee.”) ¶ 2. Designs for such stamps are selected by the Citizens Stamp Advisory Committee. Id.

On May 21,1993, the Citizens Stamp Advisory Committee approved designs featuring American western celebrities and themes for twenty commemorative stamps to be sold collectively as a sheet titled “Legends of the West.” Jaffer Dec. ¶ 3. The Postal Service scheduled the initial release of the sheets for March 29, 1994. Id. Production of the sheets commenced in August, 1993, and, shortly thereafter, 5.2 million “Legends of the West” sheets were distributed through normal channels directly from the production facilities to 330 postal facilities and stamp distribution offices throughout the country. Id.

On January 14, 1994, the Postal Service discovered that the sheets contained an error in the image of Bill Pickett, an African-American rodeo star. Jaffer Dec. ¶ 3. Specifically, the stamps contained the image of *366 Ben Pickett, Bill Pickett’s brother, rather than that of Bill Pickett himself. Id.

On January 18, 1994, the Postal Service announced its decision not to issue the Pickett Error Sheets in their then current form. Jaffer Dec. ¶4. Furthermore, after consultation with the Pickett family, the Postal Service decided that the Pickett Error Sheets would be recalled and destroyed, and that an accurate Legends of the West sheet would be created, produced, and issued at a later date. Id. In reaching its initial decision to destroy the Sheets, the Postal Service did not consider the market value of the Pickett Error Sheets, if they were prematurely sold. Id.

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Bluebook (online)
870 F. Supp. 362, 1994 U.S. Dist. LEXIS 16688, 1994 WL 669838, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morris-v-runyon-dcd-1994.