Unicover Corp. v. United States Postal Service

859 F. Supp. 1437, 1994 U.S. Dist. LEXIS 11212, 1994 WL 419903
CourtDistrict Court, D. Wyoming
DecidedAugust 5, 1994
Docket94 CV 0173 J
StatusPublished
Cited by2 cases

This text of 859 F. Supp. 1437 (Unicover Corp. v. United States Postal Service) is published on Counsel Stack Legal Research, covering District Court, D. Wyoming primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Unicover Corp. v. United States Postal Service, 859 F. Supp. 1437, 1994 U.S. Dist. LEXIS 11212, 1994 WL 419903 (D. Wyo. 1994).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

ALAN B. JOHNSON, Chief Judge.

This matter came before the court on July 19 and 22, 1994 for hearing on a Motion for Preliminary Injunction combined with trial on the merits of a Complaint for Declaratory and Injunctive Relief.

The court having considered the Complaint, Answer, the Motion for a Preliminary Injunction, the Opposition thereto, the mem-oranda, the exhibits and testimony adduced at trial, having granted Mystic’s Motion to Intervene as plaintiff, having granted the United States Postal Service’s Motion to Combine hearing with trial on the merits, and being fully advised does hereby find and conclude as follows.

FINDINGS OF FACT

1. The Postal Service has a commemorative stamp program. The purpose of the program is to commemorate the cultural heritage of the United States. The program does so by recognizing events, people and places in the design of postage stamps. It is considered a great honor to be pictured on a United States postal stamp. By so honoring the chosen subjects, the program brings to light some contributions to the nation’s history which would otherwise be unrecognized.

2. Out of the approximately 40 to 41 billion stamps the post office issues each year, 9 billion are commemorative stamps. Typically, each year the commemorative program includes approximately 125 designs and 30 to 35 different subject matters. Each year the Citizens’ Stamp Advisory receives approximately 30,000 requests for new stamp subjects from the public. It distills these proposals into a few recommendations from which the Postmaster General makes the final selection.

3. The commemorative stamp program is important to the Postal Service because many of the commemorative stamps are purchased and held by collectors and are never used for postage. The profits from such stamps purchased for other than postal purposes are called retention revenues and are a significant source of funds through which the Postal Service supports its operations. The Postal Service’s projected retention revenues for fiscal year 1994 are $253,500,000.

4. The Postal Service regulations provide: Section 162.1 Purpose. Commemorative stamps and postal stationery (postal cards, embossed stamped envelopes, and aerogramme) explain the cultural and historical heritage of the United States. They describe our Nation’s achievements, portray the natural wonders of our country, instill pride in America, and focus attention on worthy causes, issues, and interests of national concern. The USPS encourages the widespread use of these stamps and stationery items to promote national ideals, progress, and heritage. Commemorative stamps are not intended to replace regular stamps of the same class, but clerks are *1439 encouraged to promote and sell them to all customers, not just stamp collectors.
* * * * * *
162.3 Philatelic Products. Philatelic products are designed and sold to promote the enjoyment and the informative value of stamp collecting.

Domestic Mail Manual §§ 162.1 and 162.3.

5. The popularity of stamp collecting in general and the commemorative stamp program in particular has led to the development of support businesses in the private sector. Plaintiff Unieover is a private corporation which supplies its customers with philatelic products. Twenty-five percent of its business consists of a philatelic product called “first day covers”. First day covers include a stamp, an envelope (commonly printed with a design relating to that stamp) and a first day of issue cancellation.

6. Unicover offers its customers subscriptions that include a first day cover of every United States commemorative and special stamp issued by the Postal Service. It is extremely important to the success of the subscription programs that every stamp be included because many stamp collectors place great emphasis on completeness. Unicover’s president, Mr. James A. Helzer, is an expert on stamp collecting. He testified that such collectors will cease collecting rather than continue an incomplete collection.

7. Plaintiff in Intervention Mystic Stamp Company is in the business of selling stamps. It is the largest private seller of mint stamps in the United States. Commemorative stamps are its most popular products. Its heritage program has over 6,000 subscribers. This program offers the subscriber every United States commemorative stamp from 1935 through 1995. Mystic advertises the Heritage collection of commemorative stamps as “including all the scarce ones.”

8. Mystic and Unicover are two of the Postal Service’s largest customers. The Postal Service calls Mystic every week to collect its stamp order. Mystic and Unicover provide products and services that promote and enhance stamp collecting and thereby increase the Service’s profits from retained revenue. The Postal Service has never failed to supply Mystic and Unicover with all the mint condition stamps they wanted. Their customers are accustomed to obtaining stamps through them rather than through the Postal Service.

9. Every United States postage stamp is assigned an issue date. Until it is issued, a stamp does not become a United States postal stamp. A newly issued stamp is usually available in specified cities on the date of issue, and then goes on sale nationwide the next day.

10. In 1994, the Postal Service was prepared to launch a new “brand” or format of commemorative stamps called Classic Collection. This format is especially designed to appeal to the younger, casual collector and features sheets of 20 semi-jumbo size stamps colorfully depicting topical subject matter with broad appeal. The sheets in the Classic Collection will have a title, a non-stamp header above the actual stamps and will have information printed on the back of the stamps. The first in this series is called “Legends of the West” and depicts such colorful and legendary Americans as Wyatt Earp, Buffalo Bill and Sacagawea. One of the Americans to be honored in the Legends of the West series is Bill Pickett, a black cowboy, who, among his other accomplishments, is credited with originating the rodeo event of steer wrestling. 1 The scheduled issue date for the Legends of the West series was March 29, 1994.

11. The Postal Service contracts out the printing of stamps including the planned 400 million “Legends of the West” stamps. The series was to be printed on sheets of 20 with one stamp on each sheet representing Bill Pickett. However, in January of 1994, after 104 million stamps (5.2 million sheets) of the first print run were printed, 2 the Postal Ser *1440 vice learned that the picture on the Bill Pickett stamp was definitely not Bill Pickett. Instead, it was probably his brother, Ben Pickett. In addition, the Postal Service learned that the back of the stamp was printed with the incorrect year of Ben Pickett’s birth.

12. Ben Pickett was the businessman of the family business, Pickett Brothers Bronco Busting Company, and his life was very different from that of his brother, Bill.

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Bluebook (online)
859 F. Supp. 1437, 1994 U.S. Dist. LEXIS 11212, 1994 WL 419903, Counsel Stack Legal Research, https://law.counselstack.com/opinion/unicover-corp-v-united-states-postal-service-wyd-1994.