Cason v. Texaco, Inc.

621 F. Supp. 1518, 1985 U.S. Dist. LEXIS 14077
CourtDistrict Court, M.D. Louisiana
DecidedNovember 7, 1985
DocketCiv. A. 83-936-B
StatusPublished
Cited by24 cases

This text of 621 F. Supp. 1518 (Cason v. Texaco, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cason v. Texaco, Inc., 621 F. Supp. 1518, 1985 U.S. Dist. LEXIS 14077 (M.D. La. 1985).

Opinion

POLOZOLA, District Judge.

Herbert Cason filed this suit alleging certain violations of the Petroleum Marketing and Practices Act (“PMPA”) 1 and the Louisiana Unfair Trade Practices and Consumer Protection Law 2 . Cason contends that Texaco, Inc. (“Texaco”) has engaged in unfair trade practices and predatory pricing schemes in an effort to terminate his lease of a service station. According to Cason, Texaco engaged in these alleged practices to transform the plaintiff’s dealer operated station into a company operated station.

Texaco has filed three motions for summary judgment. 3 In its motions, Texaco seeks to dismiss the claim brought pursuant to the PMPA, certain of plaintiff’s Unfair Trade Practices and Consumer Law claims, and, finally, seeks to resolve the issue of whether there was a breach of a fiduciary relationship between Texaco and the plaintiff. In addition, Texaco has filed three motions in limine which seek to exclude evidence of (a) unfair trade practices occurring prior to August 30, 1982; (b) a nationwide plan of Texaco to eliminate independent retailers; and (c) Cason’s intent to sublease the retail marketing outlet.

I. Petroleum Marketing and Practices Act

Texaco reurges an earlier motion for summary judgment which seeks to dismiss two claims alleging violations of PMPA. The first claim alleges a violation of 15 U.S.C. § 2802(b)(3)(A) which provides in pertinent part that:

For purposes of this subsection, the following are grounds for nonrenewal of a franchise relationship:
(A) The failure of a franchisor and the franchisee to agree to changes or additions to the provisions of the franchise if
(i) such changes or addition are the result of determinations made by the franchisor in good faith and in the normal course of business; and
(ii) such failure is not the result of the franchisor’s insistence upon such changes or additions for the purpose of preventing the renewal of the franchise agreement.

The plaintiff contends that the only new issue raised by the present motion is his alleged admission that he was not “singled out for harsh treatment by Texaco.” Texaco asserts that this admission is the equivalent of the plaintiff having admitted that Texaco acted in “good faith” in proposing changes as is required by 15 U.S.C. § 2802(b)(3)(A). Senate Report, S.Rep. No. 95-731, 95th Cong.2d Sess. 37, reprinted in 1978 U.S.Code Cong. & Ad.News 873, 895-896, states that the “good faith test is meant to preclude sham determinations from being used as an artifice for termination or nonrenewal.” 4 The good faith requirement of the statute has been interpreted to require only “subjective good faith, i.e. a ‘good heart’ without evil intent.” Munno v. Amoco Oil Co., 488 F.Supp. 1114, 1120 (D.Conn.1980). 5 This Court holds that questions of subjective intent are factual inquiries. Tiller v. Amerada Hess Corp., 540 F.Supp. 160 (D.S.C. *1522 1981). 6 Therefore, this Court is precluded from granting the motion for summary judgment at this time because of the factual dispute regarding the intent of the parties. 7

Texaco also contends that plaintiff's allegations that Texaco violated 15 U.S.C. § 2802(b)(3)(D)(iii) are without merit. 15 U.S.C. § 2802(b)(3)(D) provides

(3) For purposes of this subsection, the following are grounds for nonrenewal of a franchise relationship:
(D) ... a determination made by the franchisor in good faith and in the normal course of business, if—
(i) such determination is—
(I) to convert the leased marketing premises to a use other than the sale or distribution of motor fuel,
(II) to materially alter, add to, or replace such premises,
(III) to sell such premises, or
(IV) that renewal of the franchise relationship is likely to be uneconomical to the franchisor despite any reasonable changes or reasonable additions to the provisions of the franchise which may be acceptable to the franchisee;
(ii) with respect to a determination referred to in subclause (II) or (IV), such determination is not made for the purpose of converting the leased marketing premises to operation by employees or agents of the franchisor for such franchisor’s own account; and
(iii) in the case of leased marketing premises such franchisor, during the 90-day period after notification was given pursuant to section 104 [15 U.S.C. § 2804], either—
(I) made a bona fide offer to sell, transfer, or assign to the franchisee such franchisor’s interests in such premises; or
(II) if applicable, offered the franchisee a right of first refusal of at least 45-days duration of an offer, made by another, to purchase such franchisor’s interest in such premises.

Cason has alleged in his complaint that Texaco has violated the PMPA by not offering to assign its lease to the plaintiff. Texaco contends, however, that 15 U.S.C. § 2802(b)(3)(D)(iii) requires it to offer to assign its interest in the lease only if it had refused to renew the franchise because of its decision “to materially alter, add to, or replace such premises.” See 15 U.S.C. § 2802(b)(3)(D)(i)(II). Texaco asserts that since it offered to renew the franchise, this section is inapplicable to the present set of facts.

The Court finds that it is premature to make a legal determination of the exclusiveness of the grounds for nonrenewal set forth in 15 U.S.C. § 2802(b)(3). There are genuine issues of material fact to be resolved at the trial which preclude the Court from granting the motion for summary judgment. See Dorden v. Heist, 743 F.2d 1135 (5th Cir.1984) and Williams v. Shell Oil,

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Bluebook (online)
621 F. Supp. 1518, 1985 U.S. Dist. LEXIS 14077, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cason-v-texaco-inc-lamd-1985.