AFMS Continues to Press Its Case despite Legal Setbacks

AFMS Continues to Press Its Case despite Legal Setbacks

1/8/2012

 

AFMS, a leading parcel consulting firm based in Portland, Oregon, continues to press its case in court despite a series of legal setbacks it has suffered. The firm charged that the two largest parcel carriers in the country, FedEx Corp and UPS Inc, acted illegally by conspiring to boycott consultants and to pressure shippers using these intermediaries with the loss of their discounted rates.

In late November, a California Federal District Court judge, said that AFMS LLC failed to prove that the move of the two parcel giants harmed the industry beyond the supposed damage to the business of AFMS.

According to Judge Margeret M. Morrow’s ruling, since AFMS was not able to show that damage was done to companies other than itself, it does not have any legal standing to bring a lawsuit charging federal antitrust violations that the firm claimed to have been committed by FedEx and UPS

AFMS, on December 12, responded to the concerns of Judge Morrow by providing the court documents containing the names of a number of consultants who were allegedly harmed by the moves of FedEx and UPS. Among these consultants were Distribution Management Inc, Insource Spend Management Group, and Columbia Services Inc.

AFMS also included a company it declined to identify, but said that it is a well-established East Coast consultancy which the firm only referred to as Company X, as among those harmed by the actions of UPS and FedEx.

In its amended complaint, AFMS said that many other consultants are afraid to come forward because of fear of retribution from FedEx and UPS.

The November ruling of Judge Morrow marks the second time in 6 months she has thrown out the complaint of AFMS against FedEx and UPS.

WRITTEN BY:

blakeh@wellsdrew.com