Becker v. Crown Central Petroleum Corp.

340 A.2d 324, 26 Md. App. 596, 1975 Md. App. LEXIS 498
CourtCourt of Special Appeals of Maryland
DecidedJune 4, 1975
Docket924, September Term, 1974
StatusPublished
Cited by9 cases

This text of 340 A.2d 324 (Becker v. Crown Central Petroleum Corp.) 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
Becker v. Crown Central Petroleum Corp., 340 A.2d 324, 26 Md. App. 596, 1975 Md. App. LEXIS 498 (Md. Ct. App. 1975).

Opinion

*598 Orth, C. J.,

delivered the opinion of the Court.

The General Assembly of Maryland at its session held in 1973 made known its concern about the distribution and sale through marketing arrangements of petroleum products in this State. It declared that the economy, the public interest, welfare and transportation were vitally affected thereby and found it necessary to define the relationships and responsibilities of the parties to certain agreements pertaining thereto. Code, Art. 23, § 167A. It did so by enacting the “Maryland Gasoline Products Marketing Act” as a subheading under the “Corporations” Article. 1 Ch. 662, Acts 1973, codified as Art. 23, §§ 167A to 167-1. Section 3 of ch. 662 made the Act'apply “to dealer agreements and all renewals and extensions thereof entered into on or after July 1,1973.”

As enacted in 1973 the Act defined certain terms, § 167C; 2 required certain information to be given by a distributor to a prospective dealer, § 167D; set out provisions to which marketing agreements are subject, § 167E; imposed liability *599 on a distributor for wrongful termination of the agreement, § 167F; specified defenses to actions based on termination of the agreement, § 167G; provided for notice of intent to terminate or cancel an agreement, § 167H; and designated remedies for violations of the Act, § 167-1. It is manifest that the Legislature adopted a comprehensive scheme covering three general areas: (1) it required certain information to be given by a distributor to a prospective dealer; (2) it delineated certain provisions to which marketing agreements [were] subject; and (3) it provided sanctions for violations.

The first area enabled a prospective dealer to make an intelligent and considered decision on whether to enter into an agreement. It included such data as the gallon volume history; the names and addresses of previous dealers at the location for the past five years and the reasons their marketing agreements were terminated; any legally binding disposition of the location; the training programs the distributor will furnish and the specific goods and services it will provide. Full disclosure was required of (a) all obligations required of the dealer, (b) all restrictions on sale, transfer and termination of the agreement, and (c) the total amount of any cash deposits required, interest charges to be paid thereon and conditions for the return of the deposit. Art. 23, § 167D (1) - (7).

Section 167E delineated the “[p]rovisions to which marketing agreements [were] subject.” The section began:

“Every marketing agreement between a distributor and a dealer shall be subject to the following provisions whether or not expressly set forth therein:”

The provisions were set out in eight paragraphs. One gave a dealer a grace period within which he may cancel an executed agreement, ¶ (2). Three specified what a dealer shall not be required to do: to keep open for any specified number of hours a day or days a week unless expressly set forth in the agreement, ¶ (1); to sell products at a price fixed by the distributor, ¶ (4); to use any promotion in the *600 operation of the business, ¶ (5). Paragraph (3) prohibited an agreement waiving the right of either the dealer or distributor to trial by jury or to interpose counterclaims or cross-claims. Paragraph (6) established certain rights and obligations in the event of any termination or cancellation of an agreement by mutual agreement or otherwise. Paragraph (7) forbade a distributor from withholding unreasonably its consent to any assignment, transfer, or sale of a marketing agreement. Paragraph (8) read:

“With respect to nonrenewal of a marketing agreement, either party must give the other party notice of his intent not to renew a marketing agreement at least 90 days prior to the expiration of the term of that marketing agreement.”

The third area dealt with sanctions. They included civil liability for damages for violation of any provision of the Act and other remedies legal or equitable as may be available to the party injured by a violation, § 167-1. A distributor who has a written marketing agreement with a dealer shall be liable to the dealer as provided in § 167-1 for the distributor’s wrongful or illegal termination or cancellation of the marketing agreement during its terms, § 167F. Defenses to an action predicated upon the termination or cancellation of an agreement are designated in § 167G, but they are available only when notice of intent to terminate or cancel is given as provided in § 167H, namely, written notice to the other party in person or by certified mail at least 60 days prior to the date which it intends to terminate or cancel the, marketing agreement, “provided, however, that where criminal misconduct, fraud, abandonment, bankruptcy or insolvency of the dealer, adulteration of product, or the giving of a dishonored nonsufficient fund check, is proven at the time of termination or cancellation, the 60-day notice shall not be required.”

On 3 July 1973 Crown Central Petroleum Corporation and Earl Becker entered into a “Lease and Dealer Agreement.” It is clear that within the contemplation of the Act, Crown was a distributor, Becker was a dealer and the agreement was a *601 marketing agreement. Under date of 29 March 1974 Crown sent Becker a “Notice of Cancellation” which was received by him on 3 April 1974 by certified mail. The Notice read:

“You are hereby notified that pursuant to provisions thereof we are hereby cancelling the following agreements which have heretofore been entered into by you with us:
BRANDED SERVICE STATION LEASE AND DEALER AGREEMENT DATED JULY 3,1973.
THIS NOTICE SHALL BE EFFECTIVE JUNE 30,1971,.
We reserve all claims against you by reason of any breach by you of the above agreements or any of them or by reason of any indemnity agreement contained therein.”

On 5 June 1974 Becker instituted an action in the Circuit Court for Baltimore County against Crown for a declaratory judgment and interlocutory injunctive relief. On 1 July the parties filed a stipulation. They agreed in paragraph 1 thereof:

“1. Plaintiff, Earl Becker, shall temporarily remain at the service station located at 5217 Baltimore National Pike, Baltimore, Maryland 21229 under the terms of the Branded Service Station Lease and Dealer Agreement dated July 3, 1973 between the Plaintiff and Defendant until August 31, 1974 or until this case has been heard and decided on the merits, whichever shall first occur.”

This rendered moot the request for injunctive relief. Paragraphs 4 and 5 of the stipulation read:

“4. The 90-day notice of non-renewal called for under the provisions of Article 23, Sections 167E (8) of the Maryland Code was not afforded the Plaintiff.
*602 5.

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Bluebook (online)
340 A.2d 324, 26 Md. App. 596, 1975 Md. App. LEXIS 498, Counsel Stack Legal Research, https://law.counselstack.com/opinion/becker-v-crown-central-petroleum-corp-mdctspecapp-1975.