The parties have reached a tentative $3,895,000 settlement in an nationwide action filed against the Uniform Code Council, Inc. on behalf of all persons that paid a membership fee to and acquired a company prefix from UCC prior to August 28, 2002, and to whom UCC mailed an unreturned "renewal invoice" for membership in UCC, or who otherwise paid a renewal fee to UCC. The action alleged that the company violated its own contract with exempt customers by attempting to require them to pay unnecessary fees. To take part in the settlement, participants must submit a claim form postmarked no later than March 10, 2004.

This lawsuit claims that businesses that paid membership fees to UCC and acquired a company prefix from UCC prior to August 28, 2002, are not obligated to pay annual "renewal fees" to UCC. UCC began sending annual "renewal fee" invoices to its existing members beginning in November 2002 and continued to send such invoices until June 2003. Some businesses that received the invoice paid the unnecessary renewal fee. Others did not. The action seeks a court order declaring that businesses who became members of UCC prior to August 28, 2002, are under no obligation to pay annual renewal fees as a condition for continued membership in UCC or as a condition for their continued use of the company prefix issued to them by UCC prior to August 28, 2002. The suit also seeks to recover damages for those who did pay the "renewal fee" invoice.
The settlement provides that:
1. If you paid a membership fee to UCC prior to August 28, 2002, you will be entitled to perpetual membership in UCC and not be obligated to pay annual renewal fees to UCC, either now or in the future, as a condition for continued membership in UCC, or as a condition for your continued use of the company prefix issued to you before August 28, 2002. However, this does not apply to any company prefix(es) issued to you by UCC after August 28, 2002.

2. If you are such a member, UCC's "licensing agreement" --which pertains to your company prefix and accompanied UCC's renewal invoice-- will be declared null and void.

3. If you are such a member and you have paid the renewal fee, you are entitled to compensation from the settlement fund.

4. If you are such a member, you will be entitled to basic membership benefits, which are:
(a) continued use of your company prefix issued by the UCC prior to August 28, 2002, (b) listing of your company in the UCC membership directory, (c) discount pricing on UCC events and products, and
(d) Membership support through the UCC's Customer Service organization, educational events, and Equipment/Service Provider Directories.

Though you are not required to pay a membership renewal fee, you may choose to do so. Such payment entitles members to certain enhanced benefits: access to the online UCC Solution Center, enhanced supply chain support through UCC's customer service team; free web seminars on supply chain solutions; and a quarterly newsletter. If you file a claim for reimbursement of your annual renewal fee, such enhanced benefits will not be available to you, unless you begin paying annual renewal fees sometime in the future.

Your share of the settlement fund will depend on how much you paid UCC as a renewal fee and on the number of class members who file claims seeking compensation from the fund. As illustration, if every single eligible class member timely filed a claim, your gross recovery would be roughly 48% of the renewal fee you paid. Similarly, if half of the eligible class members file claims, your gross recovery would be roughly 100% of the renewal fee you paid.

The settlement will not be effective until the court grants it final approval. The court has scheduled a hearing on the matter for March 26, 2004.