Sierra Club v. United States Postal Service

MEMORANDUM OF DECISION

I.

On November 9, 1970, the Sierra Club (“the Club”) was notified by the San Francisco Postmaster that his office was considering revocation of the special third class postage rate. The preliminary reason given for the action at this time was a change in the Club’s income tax exemption under Section 501(c)(4) (of the Internal Revenue Code). The Club filed a timely appeal for reconsideration with the Postal Service (“the Service”). The appeal was denied by the Director, Office of Mail Classification (“OMC”), United States Post Office in February, 1971. In July, 1971 the Club was notified that its special second class postage rate had also been revoked by the OMC. On October 8, 1971 a suit for judicial review was commenced to compel the Service to reinstate the special second and third class mailing rates and to refund all excess postage fees. Subsequent to the filing of the original complaint, the defendants agreed to and did temporarily rescind the revocation and refund the excess postage paid, and the plaintiff agreed to stay further action on the law suit pending appeal to the OMC. It was agreed by the parties that the special non-profit rates could not…