In the Matter of a Mail Dispute Between:

JOHN D. KETTELLE
and
BIONETICS CORP.

P.S. Docket No. MD-148

05/21/92

Grant, Quentin E.

APPEARANCE FOR DISPUTANT JOHN D. KETTELLE: John D. Kettelle, Pro Se,
President, Ketron, Inc., 1005 N. Glebe Road, #250,
Arlington, VA 22201-4751

APPEARANCE FOR DISPUTANT BIONETICS CORP.: Mollie Ward, Esq., Jones,
Blechman, Woltz and Kelly, P.C., Post Office Box 12888,
Newport News, VA 23612-2888

INITIAL DECISION

The Office of Field Legal Services, Philadelphia, PA, has forwarded this mail dispute for resolution pursuant to Domestic Mail Manual (DMM) § 153.72 and 39 C.F.R. Part 965.

The parties have filed submittals and comments pursuant to the Rules of Practice. The following findings of fact are based on such submittals and comments and the exhibits attached thereto.

Bionetics Corp. has requested that disputant Kettelle not be permitted to represent Ketron, Inc. in this proceeding because under the Rules of the Supreme Court of Virginia a corporation may not be represented before a tribunal (defined as including "any agency, authority, board or commission") by its officers, employees or agents who are not authorized to practice law in Virginia. This request is denied. The Rules of Supreme Court of Virginia do not apply to representation in proceedings before the United States Postal Service. There is no rule or regulation applicable to this proceeding which bars a corporate officer, not an attorney, from representing a corporate disputant.

Bionetics has requested a hearing to present oral argument. The parties appear to have set forth fully and clearly in submittals and comments their arguments in the matter. Therefore, a hearing is not required and the request is denied.

FINDINGS OF FACT

1. The disputants are John D. Kettelle, president of Ketron, Inc. (Ketron), a Pennsylvania corporation, and The Bionetics Corporation (Bionetics), a Virginia corporation.

2. The mail in dispute is addressed to Ketron, Inc., 1725 Jefferson Davis Highway, Suite 602, Arlington, VA 22202-4102.

3. Pursuant to a Purchase Agreement dated August 22, 1991, Bionetics purchased Ketron's assets related to Ketron's operating division including contracts performed, and all of the assets in Ketron's offices located in Rosslyn, VA. The purchase included rights to use the name "Ketron, Inc." and "Ketron" and all of the "tangible and intangible personal property of all kinds" related to the assets purchased. The purchase did not include the stock of Ketron.

4. Since August 22, 1991, Bionetics has referred to the assets purchased from Ketron, Inc. as the "Ketron Division of Bionetics" and the "Bionetics Ketron Division."

5. In early 1992, Bionetics moved the Ketron Division operations from Rosslyn to Crystal City, Virginia with a mailing address at 1725 Jefferson Davis Highway, Suite 602, Arlington, VA 22202-4102.

6. Ketron, Inc. filed for relief under Chapter 11 of the United States Bankruptcy Code on September 19, 1991. Ketron is presently operating as a debtor in possession of its assets.

7. Disputant Kettelle and his son are the only individuals associated with the debtor Ketron, Inc. The only asset of Ketron is its claim against the United States relative to a terminated government contract. Ketron shares office space with a law firm at 1005 N. Glebe Road, Arlington, VA 22201.

8. Bionetics Ketron Division employs 25 persons and oversees and performs 10 contracts at the Crystal City location (1725 Jefferson Davis Hwy.).

9. From August 22, 1991 until February 1992, Bionetics Ketron Division received mail addressed to Ketron, Inc. without interference by Ketron. However, in February 1992, disputant Kettelle filed a change of address form with the Crystal City Station, Arlington, VA directing that mail addressed to Ketron, Inc. at 1725 Jefferson Davis Hwy. be forwarded to his new address, 1005 N. Glebe Rd., Suite 250, Arlington, VA 22201. Bionetics then instructed the postmaster to disregard the change of address order.

10. The vast majority of mail addressed to Ketron, Inc. at 1725 Jefferson David Hwy. is related to assets purchased by Bionetics from Ketron and is intended to be received by Bionetics Ketron Division.

CONCLUSIONS OF LAW

Generally, mail addressed to corporations is delivered as addressed or to an authorized agent, or in case of disagreement among corporate officers or others connected with the company, in accordance with the order of the president of the corporation. DMM § 153.51. On the other hand, mail delivery rules are intended to cause mail to reach the destination intended by the sender. Vol. I, Opinion of the Solicitor of the Post Office Dept., p. 713 (1882).

Disputant Bionetics, on the record before me, has established its right to direct the delivery of the disputed mail. Under the Purchase Agreement, Ketron, Inc., sold to Bionetics the right to use the name "Ketron, Inc.," and all of the assets of its operating division in Rosslyn, VA including all of the Ketron contracts performed in that office. Bionetics later moved this division to Crystal City, VA where it uses the mailing address Bionetics Ketron Division, 1725 Jefferson Davis Highway, Suite 602, Arlington, VA 22202-4102 and where, from August 1991 to February 1992, it received mail addressed to Ketron, Inc. without interference by Ketron. Disputant Kettelle, representing Ketron, has not disputed the representation of Bionetics that the vast majority of the disputed mail is intended to be received by Bionetics Ketron Division at that address. Therefore, even though Ketron, Inc. still exists and Mr. Kettelle is its chairman, the corporation, by virtue of the sale to Bionetics, has effectively surrendered to Bionetics the right to delivery of the disputed mail which should be delivered to Bionetics in accordance with the intention of the great majority of the senders.

This decision does not determine the ownership of the disputed mail. Any mail received by Bionetics clearly intended for Ketron, Inc., the debtor in possession, or for Mr. Kettelle, individually, is to be promptly forwarded by Bionetics.

Disputant Kettelle has requested an expansion of this proceeding to include ten other potential disputes involving unnamed post offices to which he has sent change of address orders. Bionetics objects to the request. The instant dispute is the only one properly before me for resolution based on forwarding pursuant to DMM § 153.72 and assignment by the Judicial Officer. The request is denied

Grant, Quentin E.,
Chief Administrative Law Judge