UPS lawsuit claims consumers paid for insurance but did not receive compensation for losses

UPS insurance class action lawsuit overview: 

• Who: John Chris Kotsis filed a class action lawsuit against United Parcel Service Inc. 
• Why: Kotsis claims UPS repeatedly denies insurance claims for things of value shipped with the company that end up being damaged or lost, despite allegedly representing that it will provide coverage for things of value it ships.  
• Where: The class action lawsuit was filed in Washington federal court.

The United Parcel Service (UPS) has repeatedly denied insurance claims related to the loss or damage of things of value after they were entrusted to the company, a new class action lawsuit alleges. 

Plaintiff John Chris Kotsis claims UPS falsely represents that it will provide insurance coverage for things of value that it ships, before later maintaining that the items — gold coins, in his case — are not covered under its terms and conditions. 

The plaintiff argues the terms and conditions cited by UPS when allegedly denying insurance claims are “excessively complex and impenetrable” to the point that the company’s own workers don’t understand them and that they cannot be effectively communicated to consumers.

“UPS’s website lists hundreds of pages of ‘terms and conditions’ that describe, among other things, what claims UPS will dishonor,” the UPS class action states. “Not even UPS’s agents knew why gold coins were not insured. How could a mere customer be made aware of this?” 

The plaintiff wants to represent a nationwide class of consumers who have shipped a package with UPS that was lost or damaged and who were subsequently denied an insurance claim made to the company. 

UPS does not reimburse fees to customers who have shipped items damaged, lost, class action says

The plaintiff argues UPS also declines to repay any of the option fees or other fees it collects from customers for shipments that end up getting lost or being damaged. 

“UPS should not be allowed to collect payments for services it does not perform, and charge fees to customers for promises to reimburse them for losses UPS never intends to honor,” the UPS class action states. 

The plaintiff claims UPS is guilty of breach of contract, fraud, negligence and unfair or deceptive trade practices under the Federal Trade Commission Act. 

Plaintiff is demanding a jury trial and requesting an award of punitive damages for himself and all class members. 

UPS workers reached a tentative agreement with the Teamsters union last month to install air conditioning systems in the company’s brown delivery trucks. 

Have you been denied an insurance claim by UPS for an item that was damaged or lost? Let us know in the comments! 

The plaintiffs are represented by Ronald G. Rossi of Rossi & Co. PC. 

The UPS insurance class action lawsuit is Kotsis v. United Parcel Service Inc., Case No. 2:23-cv-01111, in the U.S. District Court for the Western District of Washington.

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