California Appeals Court Reinstates Staples Suit

The state's 2nd District Court of Appeal has reinstated a lawsuit claiming that Staples Inc. overcharged customers when shipping products, saying the company in effect sold insurance without a license.

The ruling said the trial court erred when it said Staples was exempt from insurance licensing rules. Staples doubled insurance costs on some items and pocketed the increase as a commission, according to court papers.

Customer Alan Wayne had sued on behalf of California residents and was seeking class-action status. He accused Staples of violating the state's insurance rules and unfair business practices law.