Ascom Hasler Mailing Systems, Inc. v. United States Postal Service
885 F. Supp. 2d 156
D.D.C.2012Background
- In the 1970s, Pitney Bowes developed CMRS and USPS authorized it under a 1978 SOU; a 1979 CMRS regulatory framework established trust accounts and reporting.
- Ascom and Neopost later developed CMRS and received USPS authorization in 1988 and 1990 respectively; CMRS allowed carriers to earn interest on customer deposits prior to USPS receipt.
- In 1995, USPS issued new CMRS regulations eliminating commercial trustee accounts and directing deposits into USPS accounts, ending the interest income for manufacturers.
- Plaintiffs allege contract, unjust enrichment, and takings claims arising from USPS’s 1995 regulatory changes and alleged promises to retain interest income.
- USPS moved to dismiss, and after prior rulings, the case proceeded to trial on liability and damages; the court found no enforceable contracts or improper takings.
- The court ultimately awarded judgment for USPS on several counts, finding no contract, no implied-in-fact or law contract, no promissory estoppel, and no regulatory taking.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was there an express or implied contract on interest income? | Neopost alleged an informal contract mirroring Pitney Bowes’ arrangement. | USPS did not promise or bind itself to perpetual interest; no authority or definite terms established. | No binding contract established. |
| Did Ascom/Neopost have an implied-in-fact contract on interest income? | Ascom/Neopost relied on conduct implying agreement. | No mutual assent or clear term; no authority to bind USPS. | No implied-in-fact contract. |
| Did promissory estoppel support recovery for CMRS interests? | Promises conveyed reliance and detriment in developing CMRS. | Promises were indefinite; no justified injustice shown. | Promissory estoppel not established. |
| Did USPS’s 1995 CMRS regulations constitute a taking of property rights? | Loss of interest income was a regulatory taking requiring compensation. | Regulation served legitimate cash management and public purposes. | No regulatory taking under Penn Central; not too far. |
Key Cases Cited
- United States v. Winstar Corp., 518 U.S. 839 (Supreme Court 1996) (promissory-like expectations in a regulatory context; government contracts with regulatory effects)
- Penn Central Transportation Co. v. City of New York, 438 U.S. 104 (Supreme Court 1978) (three-factor test for regulatory takings: economic impact, investment-backed expectations, character of government action)
- Fifth Third Bank of Western Ohio v. United States, 52 Fed. Cl. 264 (Fed. Cl. 2002) (contract formation and government contracting authority standards)
- Cienega Gardens v. United States, 331 F.3d 1319 (Fed. Cir. 2003) (regulatory changes outside expected scope may not preclude taking claims)
- Full Value Advisors v. SEC, 633 F.3d 1101 (D.C. Cir. 2011) (three Penn Central factors; no per se approach)
