Sears Roebuck Co. v. USPS

After the Postal Service determined that appellants were ineligible for a discounted rate for folded self-mailers, the Postal Service assessed revenue deficiencies for over $1.25 million. The Postal Service determined that appellants were ineligible for the discounted rate because their mailers, which exceeded seven inches in length, had been sealed only on the left edges, and not on the top and bottom edges. The PCSC upheld the assessments. Appellants then filed suit in district court to overturn the PCSC's decision, but the district court affirmed. The court found no inconsistency in the Postal Service’s interpretation of the Domestic Mail Manual. The court also found that the Postal Service’s interpretation of the sealing requirements is perfectly consistent with the terms of the Manual and entirely reasonable. Accordingly, the court denied appellants' challenges and affirmed the judgment. However, the court reversed and vacated the district court's award of surcharges after the government confessed error. View "Sears Roebuck Co. v. USPS" on Justia Law