American Petrofina Co. of Texas v. D & L Oil Supply, Inc.

583 P.2d 521, 283 Or. 183, 1978 Ore. LEXIS 1018
CourtOregon Supreme Court
DecidedAugust 1, 1978
DocketTC 78638, SC 25059
StatusPublished
Cited by27 cases

This text of 583 P.2d 521 (American Petrofina Co. of Texas v. D & L Oil Supply, Inc.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Petrofina Co. of Texas v. D & L Oil Supply, Inc., 583 P.2d 521, 283 Or. 183, 1978 Ore. LEXIS 1018 (Or. 1978).

Opinion

*185 LENT, J.

This is an action at law arising out of a series of disputes between a supplier of petroleum products, American Petrofina Company ("Fina”), and a regional distributor, D & L Oil Supply, Inc. ("D & L”), which has its place of business in Salem. The case was tried to the court without a jury. The major problem on appeal involves Fina’s obligations to D & L under a price support agreement. Fina’s appeal challenges the sufficiency of the evidence to support the trial court’s judgment for D & L in this and other particulars. 1 We view the evidence in the light most favorable to D & L, and must affirm the trial court’s judgment unless we can say there was no evidence to support it. See Hendrix v. McKee, 281 Or 123 at 126, 575 P2d 134 (1978).

In March of 1971 the parties entered into a written agreement, entitled a "Distributor Sales Contract,” under which Fina agreed to sell and D & L agreed to buy gasoline and other petroleum products. The price support dispute concerns the sale of gasoline only. Although the contract did not specify a price per gallon, it is undisputed that throughout the period involved in this case the base price to be paid by D & L was $0.1465 per gallon for regular gasoline and three cents more per gallon for premium.

The written contract does not refer to price support, but at the time it was executed the parties orally agreed that Fina would, under certain circumstances, furnish price support. They are now in sharp disagreement about the terms of that oral agreement. Fina did furnish some price support, but not the amount to which D & L claims it was entitled. Further background information will help to clarify the parties’ contentions.

*186 D & L, from its Salem location, supplied a number of independent retail service stations in the Willamette Valley and on the coast. In order to remain competitive as independent service stations, these retail dealers had to sell gasoline to the public at a price lower than that being charged by the major brand service stations in their trading areas. In order to supply gasoline to these stations at a price which would permit them to maintain their competitive status as independent stations, D & L looked to the price support to be furnished by Fina.

For pricing purposes, Fina and D & L divided the area served by D & L into a number of zones. The price support furnished by Fina on a particular purchase of gasoline depended on the price situation in the zone to which that gasoline was to be delivered and where it was to be sold by a given retail station. The rate of price support furnished during a given period for a particular price zone was tied to the retail price of major brand gasoline. Fina, shortly after the initial agreement, provided D & L with a schedule for price support (which Fina calls a "Competitive Price Allowance” or "CPA”) from which the following figures are excerpted:

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Bluebook (online)
583 P.2d 521, 283 Or. 183, 1978 Ore. LEXIS 1018, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-petrofina-co-of-texas-v-d-l-oil-supply-inc-or-1978.