FedEx sever ties with some delivery contractors as partners threaten to suspend holiday deliveries

FedEx Corporation, a leading transport and delivery company in the United States, cut ties with one of its largest delivery partners. The break-up is effective immediately.

According to Fox Business, FedEx has ended its partnership with its ground delivery contractor, Spencer Patton. It has also filed a lawsuit against the company to ask the court to stop the contractor from spreading false information about the company for alleged financial gain.

The suit is directed at Patton's Route Consultant Inc., a consultancy for delivery businesses. FedEx claimed that this firm is the real beneficiary of all Patton's efforts until now. Just hours after the filing where FedEx is seeking a "permanent injunctive relief and monetary damages" from Spencer Patton for false and misleading statements about FedEx Ground, the company proceeded to cancel all of its contracts with the contractor.

Moreover, FedEx alleged that the news coverage stemming from Patton's campaign had damaging effects on the company and also eroded goodwill within the network of contractors.

The company reiterated that Patton's actions were actually a promotional campaign for his own company that offers delivery providers, consultancy, and brokerage.

In any case, with its contract with FedEx, Patton has 225 FedEx Ground routes in 10 states and offers various business services to around 6,000 contractors in the U.S. that move and deliver packages for this unit. It apparently has large coverage and Patton threatened to halt all deliveries for the holiday season and FedEx responded with a lawsuit.

FedEx assured the consumers that it has contingency plans to cover all the 225 ground delivery routes that its former partner previously covered. These routes include 10 states so there will be no interruption for holiday deliveries.

"My business is losing money every day," CNN Business quoted Patton as saying regarding FedEx’s move to cancel its contract. "And my business will not be able to continue operation past Nov. 25. peak season which is one of the highest cost of operations time of the year. I have to double the number of trucks and hire drivers but I will not do so if things don't change."

Finally, contrary to what Patton has been claiming, FedEx said that the Ground network is stable and stressed that it will consider any attempt at collective bargaining a violation of the contract.