DC Circ. Defers To USPS In PenAir Contract Dispute

Law360, New York (April 3, 2012, 6:19 PM EDT) -- The D.C. Circuit on Tuesday overturned a ruling that the U.S. Postal Service properly awarded a mail delivery contract to Alaska's Peninsula Airways Inc., saying the dispute hinged on "hopelessly" ambiguous statutory language that the Postal Service needed to clarify.

The appeals court stopped short of vacating the Postal Service's decision to award PenAir a contract to deliver mail along five rural Alaskan routes, but asked the agency to present an authoritative interpretation of disputed language in the Rural Improvement Act of 2002.

"Although the U.S....
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