BP West Coast Products LLC v. SKR Inc.

989 F. Supp. 2d 1109, 2013 WL 5728899, 2013 U.S. Dist. LEXIS 151764
CourtDistrict Court, W.D. Washington
DecidedOctober 22, 2013
DocketCase No. C11-6074 MJP
StatusPublished
Cited by9 cases

This text of 989 F. Supp. 2d 1109 (BP West Coast Products LLC v. SKR Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BP West Coast Products LLC v. SKR Inc., 989 F. Supp. 2d 1109, 2013 WL 5728899, 2013 U.S. Dist. LEXIS 151764 (W.D. Wash. 2013).

Opinion

ORDER GRANTING SUMMARY JUDGMENT TO BPWCP ON COUNTERCLAIMS,, DENYING MOTION TO VOLUNTARILY DISMISS COUNTERCLAIMS, AND DENYING MOTION TO AMEND MOTION TO VOLUNTARILY DISMISS COUNTERCLAIMS

MARSHA J. PECHMAN, Chief Judge.

This matter initially came before the Court on Plaintiffs motion for summary judgment on Defendants’ counterclaims. (Dkt. No. 92.) The Court considered the motion, Defendants’ response (Dkt. No. 102), and Plaintiffs reply (Dkt. No. 103). After this motion was fully briefed, individual Defendants submitted on their. own behalf and on behalf of the corporation SKR, Inc. a motion to voluntarily dismiss Defendants’ counterclaims without prejudice. (Dkt. No. 106.) Plaintiff opposed this motion. (Dkt. No. 109.) One of the grounds on which Plaintiff opposed the motion was that it was improperly submitted as a pro se filing on behalf of a corporation and while Defendants are represented. by a licensed attorney. (Id. at 2-3.) Plaintiffs opposition was filed on September 11, 2013. Nearly one month later, on October 10, 2013, Defendants’ local counsel filed a motion to amend the motion to voluntarily dismiss counterclaims, only to the extent the Court would consider it filed by the attorney of record in this case. (Dkt. No. 122.)

[1114]*1114Upon consideration of all the motions, responsive pleadings and relevant information before the Court, the Court DENIES the motion to voluntarily dismiss and the motion to amend the motion to voluntarily dismiss, and GRANTS the motion for summary judgment on Defendants’ counterclaims. The motion for summary judgment incorporates the facts and background section from Plaintiffs simultaneously filed motion for summary judgment on Plaintiffs claims (Dkt. No. 91), and background from that motion and its supporting attachments is referenced below.

Background

Plaintiff BP West Coast Products (“BPWCP”) filed suit against Defendants SKR, Inc., Sherif K. Riad and his wife Nagwa Riad (collectively “SKR”), for violating certain franchising agreements, deed restrictions and trademark rights. SKR operates two gasoline stations — one in Vancouver, Washington, and one in Beaverton, Oregon. As alleged, SKR refuses to sell ARCO branded gasoline and am/pm products, which BPWCP alleges is a breach of the franchising agreements SKR entered into, and certain deed restrictions and real estate agreements.

BPWCP markets and distributes ARCO-branded gasoline. (Dkt. No. 1 at 3.) ARCO gasoline is sold to the public through a network of independent dealers licensed to use the ARCO Marks and trade dress pursuant to agreements defined as franchises under the Petroleum Marketing Practices Act. (Id.) BPWCP is also franchisor of convenience stores under the am/pm service mark (“ampm"). (Id.) The Riads, through their wholly owned corporation, Defendant SKR, Inc., purchased from BPWCP a gasoline dealership and ampm convenience store business in 2008 (“Beaverton Station”) and 2001 (“Vancouver Station”). (Dkt. No. 1 at 4.)

Defendants entered into an ARCO Gasoline Dealer Agreement (“GDA”) and an ampm Mini Market Agreement related to the Beaverton Station effective October 1, 2008 (collectively, “Beaverton Site Agreements”). (Dkt. No. 47 at 9.) The GDA included both the sublease for the Beaver-ton Property and a Motor Fuel Supply Agreement. (Dkt. No. 91 at 2.) Both agreements had a term of three years with optional rights of renewal (Id.) After profitably operating the Beaverton Station for over six years, Defendants began looking to purchase another ARCO gas station in 2006. (Id.)

Mr. Riad attended a How-to-Bid seminar in 2006 conducted by BPWCP’s broker, NRC Realty, but was unsuccessful in placing any bids. (Dkt. No. 91 at 3.) Ms. Riad attended another How-to-Bid seminar in April 2007. Ms. Riad contends she approached then-regional sales manager Marty Cuneo to inquire about profit margins SKR could expect on gasoline and store sales. (Dkt. No. 93-1 at 38.) She claims he disclosed she could estimate future profitability by using a margin of 9 cents per gallon and a 30-32% margin on in-store sales. (Id. at 81-83.) According to NRC’s attendance records and Mr. Cuneo himself, Mr. Cuneo was not at the April 2007 How-to-Bid seminar. (Dkt. No. 100-1 at 2, Dkt. No. 95 at 2.)

After the seminar, Defendants requested and received Property Specific Packages (“PSPs”) on a few properties, outlining store-specific information including recent annual in-store sales figures, and gallons of gasoline sold. (Dkt. No. 91 at 3.) The PSPs did not contain information on profitability of any stations, and contained an express disclaimer stating, “The sales information stated above is the actual operating results for this unit. It does not constitute a suggestion, representation or warranty of future sales. A [1115]*1115new franchisee’s or operator’s individual financial results are likely to differ.” (Dkt. No. 100-1 at 4.)

After some personal investigation of three sites, Defendants placed bids and were successful on one property, the Vancouver Station. (Dkt. No. 91 at 4.) BPWCP agreed to sell Defendants the Vancouver Station for $1,625,000.00, below the market value of $2,060,000.00 contingent on Defendants’ agreement to (1).en-ter into an ampm Mini Market franchise agreement with a twenty year term, (2) enter into an ARCO Gasoline Dealer Agreement granting BPWCP the exclusive right to supply gasoline to the Vancouver Station for twenty years, and (3) take title to the property by way of a Special Warranty Deed imposing Deed Restrictions. (Dkt. No. 91 at 4-5.)

Around October of 2011, SKR stopped ordering gasoline from BPWCP and began selling unbranded gasoline in violation of the GDAs and Deed Restrictions. (Dkt. No. 91 at 8.) Defendants do not dispute this is the case. They state in their Response to the Motion for Summary Judgment:

We would have no dispute as to declaratory relief requested by BPWCP had they kept their covenant to sell us gas at a competitive price. But they didn’t and it wasn’t reasonable for us to be expected to abide by the Deed restrictions. We are forced to sell unbranded fuel in an attempt to maintain our livelihood, and protect our investment.

(Dkt. No. 102 at 2.) Defendants do not, in their response, dispute the validity of any agreements at issue. Instead, SKR primarily argues BPWCP did not act within the spirit of the contracts. (Id. at 3.)

SKR initially filed counterclaims against BPWCP and several individual BPWCP employees as Third-Party defendants. This Court dismissed all claims against third party defendants without leave to amend, as well as several other counterclaims against BP. (Dkt. No. 46.) SKR, in their second amended counterclaims, pursues an array of counterclaims for breach of contract, violations of Washington’s Franchise Investment Protection Act (“FIPA”), Oregon’s Motor Fuel Franchise Act (“OMFFA”) and Washington’s Gasoline Dealer Bill of Rights Act (“GDBRA”), violations of the Consumer Protection Act (“CPA”), fraud and misrepresentation, equitable relief, and declaratory relief. (Dkt. No. 47.)

BPWCP moved to dismiss all counterclaims except certain enumerated claims. (Dkt. No. 49 at 21-22.) The Court granted the motion to dismiss. (Dkt. No.

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Cite This Page — Counsel Stack

Bluebook (online)
989 F. Supp. 2d 1109, 2013 WL 5728899, 2013 U.S. Dist. LEXIS 151764, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bp-west-coast-products-llc-v-skr-inc-wawd-2013.