United Parcel Service, Inc. v. Postal Regulatory Commission, No. 19-1026 (D.C. Cir. 2020)
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The DC Circuit granted UPS's petition for review, challenging the Commission's Order Adopting Final Rules Relating to the Institutional Cost Contribution Requirement for Competitive Products, No. 4963. The order modified Commission regulations that are meant to ensure that all of the Postal Service's competitive products collectively cover what the Commission determines to be an appropriate share of the institutional costs of the Postal Service.
The court held that two aspects of the Commission's order require a remand. First, the Commission has not adequately explained how the statutory phrases "direct and indirect postal costs attributable to [a particular competitive] product through reliably identified causal relationships" and "costs . . . uniquely or disproportionately associated with any competitive products" can coincide. Second, in focusing on costs attributed to competitive products under 39 U.S.C. 3633(a)(2), the Commission failed to discharge its responsibility under section 3633(b) to "consider . . . the degree to which any costs are uniquely or disproportionately associated with any competitive products." Therefore, the order is arbitrary and capricious because it is largely incomprehensible with respect to the matters in issue. Accordingly, the court remanded for further consideration.
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