Mail Boxes Etc., UPS Claims to Be Arbitrated

Mail Boxes Etc. franchisees won a California appeals court ruling that allowed them to have their claims against United Parcel Service Inc. heard by arbitrators in three large groups rather than as individual cases.

The decision by the state Court of Appeal in San Diego stems from a 2003 lawsuit by 35 franchisees who said UPS hurt their business when it converted the Mail Boxes Etc. chain into the UPS Store.

The franchisees claim that the new format emphasized UPS shipping instead of what they say was more profitable packing services.

The appellate ruling is procedural and the underlying claims are meritless, a UPS spokeswoman said.