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Friendliness evaporates in lawsuit

Staff -- Logistics Management, 3/1/2001

Although FedEx and United Parcel Service may be banding together against what they see as a common enemy in Deutsche Post, they are still competitors—as a recent lawsuit demonstrates.

Last month, FedEx obtained a restraining order in Shelby County (Tenn.) State Court against freight forwarder Fritz Cos. of San Francisco, blocking it from disclosing to UPS confidential information about the customs brokerage service it provides to FedEx and seeking unspecified damages. UPS intends to acquire Fritz in a stock deal valued at $450 million.

FedEx charges that Fritz disclosed confidential information and trade secrets to Big Brown during acquisition negotiations. That information allegedly related to the customs-brokerage service agreement it had with Fritz and FedEx's proposed acquisition of some of Fritz's assets.

Fritz spokesman Graeme Stewart says the company can't comment directly on the pending litigation, but adds, "We will vigorously defend ourselves. We will mount a defense based on the merits of the case."

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