Camden, NJ – A federal judge has ruled that a Hamilton Township UPS Store could face trial over claims it overcharged customers for notary services, rejecting a motion by the new franchise owner to dismiss the case on summary judgment.
Chief U.S. District Judge Renée Marie Bumb held that sufficient evidence exists for a jury to decide whether Hamilton Pack N Ship LLC, which took over the store in 2021, is a “mere continuation” of its predecessor, RK & SP Services LLC, and could therefore be held liable under New Jersey’s successor liability law.
The ruling stems from a class action led by Barbara McLaren, who alleges she and other customers were charged more than state law allows for notarizing documents at the Hamilton Square UPS Store.
Key Points
- Court denies summary judgment for Hamilton Pack N Ship LLC, allowing the case to proceed.
- Plaintiffs claim UPS Store franchise overcharged for notary fees in violation of New Jersey law.
- Judge finds a jury could determine the new owner is a “mere continuation” of the previous operator.
Dispute over successor liability
Hamilton Pack N Ship argued that as a purchaser of the franchise’s assets, it bore no responsibility for RK & SP Services’ past conduct. The company maintained that it simply bought the location and began operating a new UPS Store, not inheriting prior debts or liabilities.
McLaren countered that Pack N Ship effectively continued RK & SP’s business under a different name, pointing to continuity in staff, operations, and location. She argued that these factors supported applying the “mere continuation” exception, which allows liability to transfer when a new business is essentially the same as its predecessor.
Judge says key facts must go to jury
In her opinion, Judge Bumb noted that determining whether Pack N Ship qualifies as a “mere continuation” involves examining intent and factual circumstances best resolved at trial. While some factors weighed against finding successor liability, others—such as operational overlap and business continuity—created enough factual dispute to prevent dismissal.
The court’s ruling means the plaintiffs can continue pursuing claims that the new UPS Store operator is responsible for alleged overcharging that occurred before and after the franchise transfer.
Potential class-wide impact
The case, filed in 2021, could have broader implications for UPS Store franchises across New Jersey if McLaren’s class claims are certified. Plaintiffs allege that notary customers were routinely charged more than state law permits, a violation that could affect hundreds of transactions statewide.
With summary judgment denied, the matter now moves toward trial, where a factfinder will determine whether Hamilton Pack N Ship is legally the successor to RK & SP Services—and whether the alleged overcharges violated New Jersey’s notary fee regulations.