LOS ANGELES (Reuters) – A federal choose on Monday dominated {that a} small enterprise contracted to ship packages for FedEx (NYSE:) on the California-Oregon border should arbitrate with FedEx over claims it made in opposition to the corporate of racketeering and different alleged authorized violations.
In granting FedEx Floor’s movement to compel arbitration, Choose Sallie Kim wrote that PYNQ failed to indicate it could be unconscionable to require arbitration. Most authorized disputes between FedEx Floor and its contractors are resolved exterior the courtroom.
FedEx has vowed to “vigorously defend the lawsuit” and has requested the court docket to dismiss the case.
PYNQ Logistics Companies sued FedEx Floor on Nov. 14 in federal court docket in Northern California, alleging that it engages in a systemic sample of unlawful and wrongful enterprise practices that violate U.S. anti-racketeering regulation.
PYNQ requested the court docket to find out that its relationship with FedEx Floor is that of an worker quite than a contractor, and reserved the proper to pursue the case as a category motion.
The case gave the impression to be the primary the place a former FedEx Floor contractor has sued the worldwide supply big below the U.S. Racketeer Influenced and Corrupt Organizations Act (RICO), PYNQ’s lawyer advised Reuters.
If the court docket had decided that FedEx Floor’s roughly 6,000 contractors are staff, it may have pushed up its labor prices and threatened the supply big’s ongoing efforts to slash prices.
