MBCC’s Chairman Freed From Liability in Suit

The chairman of Mail Boxes Coast to Coast (MBCC), a franchisee of the postal-service chain Mail Boxes Etc. with corporate offices in Encino and New York City, has been freed from any liability in connection with a lawsuit filed against Mail Boxes.

The executive, Herbert Goffstein, also was a defendant in the suit filed in federal court in 1987 by Nancy Tash, daughter of Gerald Aul, the late founder of San Diego-based Mail Boxes, which operates postal convenience stores. MBCC was also originally a defendant but was later dropped from the case, said Tash’s lawyer, Kevin McInerney.

Tash alleged that the defendants tricked her into selling her 700,000 shares of Mail Boxes’ predecessor company to Anthony DeSio, Mail Boxes’ president and chief executive, for 50 cents a share in 1983 when, her suit contended, the stock actually was worth at least $3 a share.

A federal jury in San Diego recently awarded Tash $2.5 million in compensatory damages to be paid by Mail Boxes, and it awarded her an additional $1.5 million to be paid by DeSio. But Goffstein was not found liable for any damages, McInerney said. Mail Boxes said it plans to appeal the verdict.

MBCC owns the rights to sell individual Mail Boxes franchises within the Los Angeles area and certain parts of New York City. It also operates some stores itself.