Akparewa v. Amoco Oil Co.

771 A.2d 508, 138 Md. App. 351, 2001 Md. App. LEXIS 81
CourtCourt of Special Appeals of Maryland
DecidedApril 30, 2001
Docket939, Sept. Term, 2000
StatusPublished
Cited by2 cases

This text of 771 A.2d 508 (Akparewa v. Amoco Oil Co.) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Akparewa v. Amoco Oil Co., 771 A.2d 508, 138 Md. App. 351, 2001 Md. App. LEXIS 81 (Md. Ct. App. 2001).

Opinion

KENNEY, Judge.

This appeal was taken from a decision by the Circuit Court for Baltimore City granting summary judgment in favor of appellee, Amoco Oil Company (“Amoco”), and against appellant, Gabriel Akparewa (“Akparewa”), and from the decision dismissing appellant, Vaga, Inc. (“Vaga”). Akparewa raises three issues on appeal, which we have reworded as follows, and Vaga raises one:

1. When Amoco’s violations of the statutory disclosure requirements under § 11-803 of the Commercial Law Article were not in dispute, did the trial court err in granting Amoco, rather than appellant, summary judgment?

2. Did the trial court err in granting Amoco summary judgment on the Dealer Act claim related to Miller and Hartman?

3. Did the trial court err in granting Amoco summary judgment on the negligent misrepresentation claim?

4. Did the trial court err in dismissing appellant Vaga, Inc. for lack of standing?

We find that there was a genuine material dispute of fact such that the grant of summary judgment was inappropriate, but we affirm the circuit court’s decision that Vaga, Inc. had no standing.

*355 FACTUAL BACKGROUND

Akparewa emigrated from Nigeria to the United States in 1977. He graduated from Alabama A & M University in 1980 with a B.S. degree in business administration and received an M.B.A. from Morgan State University in 1983. In early 1996, Akparewa was seeking a business opportunity. After speaking with gasoline dealers who said that the business was profitable, he concentrated his efforts on acquiring a gasoline dealership. Akparewa would visit a station and subsequently contact the owner to inquire if it was for sale and for what price.

The Park Circle Amoco

Akparewa eventually contacted the owner of the Park Circle Amoco gasoline station and convenience store, located at 3312 Reistertown Drive in Baltimore City (“Park Circle Amoco”). Amoco owns Park Circle Amoco and leases it to franchisees. The franchisee at the time of Akparewa’s initial inquiries, David Farhat (“Farhat”), indicated at first that he did not want to sell, but told Akparewa to check back. Farhat had been the franchisee since May 9, 1994. Prior to Farhat, the franchisee of the Park Circle Amoco was Owen Ray, who had operated the station for approximately twenty years before transferring it to Farhat.

After some negotiation, Farhat agreed to sell his interest in the Park Circle Amoco for $170,000. Akparewa had done his own market research by evaluating the prices dealers would accept for their stations, the location of the station, whether a convenience store was attached, and the impact of traffic patterns on the location. Akparewa apparently did not ask to see Farhat’s books and records and never inquired into the sales figures or other performance indicators from the Park Circle Amoco. 1

*356 The Akparewa/Farhat Contract

Akparewa’s attorney drew up a contract for the sale of the Park Circle Amoco, and he and Farhat signed it on February 5, 1997. Pursuant to the agreement, Akparewa agreed to purchase the business goodwill of the Park Circle Amoco, the equipment, the inventory, and “all right, title and interest in the lease rights between [Farhat] and Amoco.” Akparewa paid $10,000 down and was to pay an additional $100,000 at closing. Farhat financed the additional $60,000 of the purchase price. Closing was contingent upon Amoco’s consent to the assignment of the franchise: 2 “Closing -will only take place after Amoco has finally approved the sale of the business from [Farhat] to Buyer.” Farhat was to deliver, at closing, the following document: “the consent by Amoco Oil Company (“Amoco”) to the assignment to Gabriel Akparewa by and between Amoco and David M. Farhat on terms satisfactory to the Buyer.”

After concluding the contract with Farhat, Akparewa contacted his cousin, Valentine Korie, and asked if he would be interested in becoming a co-owner of the business. Korie agreed, and they formed a corporation, Vaga, to operate the business.

Akparewa/Amoco Disclosure

Akparewa delivered a copy of the contract with Farhat to Amoeo’s offices in Towson. Amoco responded by sending Akparewa a dealer application, a blank business plan, and a disclosure statement.

Amoco’s disclosure statement provided information about the Park Circle Amoco and the contemplated franchise. 3 In particular, the disclosure statement provided Park Circle Amoco’s gallonage history for only the two most recent calendar years, that is, 1995 and 1996. It did not include the *357 gallonage for 1994. It provided Farhat’s name and address, but not that of the prior franchisee, Owen Ray. Amoco’s disclosure statement also indicated that it retained the right to “encourage” Akparewa to use particular vendors but that he would not be obligated by contract to use those vendors.

After Amoco approved Akparewa’s dealer application and business plan, Akparewa closed on the Farhat contract. He signed Amoco’s one year trial franchise contract (the “Agreement”) on or about July 15,1997. Vaga was not a party to the Agreement, which specifically named Akparewa as the lessee/franchisee. The Agreement also provided that it could not be assigned without Amoco’s prior written consent.

Akparewa’s Operation of the Park Circle Amoco

Akparewa began operating Park Circle Amoco on or about July 15, 1997. Akparewa had purchased the existing inventory of the store as part of the transaction with Farhat, and he purchased subsequent inventory on an as-needed basis from various vendors.

During the course of the year, Akparewa worked with Amoco’s representative, Stephen Brown, who periodically checked on the operation of the Park Circle Amoco. Amoco also employed “mystery shoppers” to evaluate the store’s operation. No negative evaluations were given by the mystery shoppers, but Brown was not satisfied with the manner in which Akparewa was running his store. Brown noted several problems with the store; for example, the store was not clean, shelves were empty, merchandise was not placed on the shelves facing the customer, and merchandise was not labeled with a price. Akparewa contends that Brown kept telling him to “re-merchandise” and that he do so through an entity identified as Miller & Hartman, a vendor with which Brown was familiar. Akparewa initially declined to do so.

On September 19, 1997, Brown visited the store and discussed ongoing problems with Akparewa. He also wrote a note stating that the store should be re-merchandised and that the “lease is in jeopardy of being canceled.” Akparewa then *358 agreed to use Miller & Hartman. To do so, Akparewa had to order a week’s supply of inventory in advance, rather than purchasing on an as-needed basis.

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Bluebook (online)
771 A.2d 508, 138 Md. App. 351, 2001 Md. App. LEXIS 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/akparewa-v-amoco-oil-co-mdctspecapp-2001.