Curry v. Equilon Enters., LLC

233 Cal. Rptr. 3d 295, 23 Cal. App. 5th 289
CourtCalifornia Court of Appeal, 5th District
DecidedApril 26, 2018
DocketE065764
StatusPublished
Cited by27 cases

This text of 233 Cal. Rptr. 3d 295 (Curry v. Equilon Enters., LLC) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Curry v. Equilon Enters., LLC, 233 Cal. Rptr. 3d 295, 23 Cal. App. 5th 289 (Cal. Ct. App. 2018).

Opinion

MILLER Acting P.J.

*292Plaintiff and appellant Sadie M. Curry brought a class action case against defendant and respondent Equilon Enterprises, LLC, doing business as Shell Oil Products US (Shell). Curry's causes of action included (1) failure to pay overtime compensation; (2) failure to pay for *293missed break periods; and (3) unfair business practices ( Bus. & Prof. Code, § 17200 ). The trial court found Shell was not Curry's employer and therefore granted Shell's motion for summary judgment. Curry contends the trial court erred in its finding and by granting summary judgment. We affirm the judgment.

FACTUAL AND PROCEDURAL HISTORY

A. BACKGROUND

Prior to May 2003, Shell owned approximately 365 service stations in California. Shell operated some of the stations itself, with its own employees. Prior to May 2003, Shell changed its business model. Shell no longer operated its own service stations with its own employees. Instead, Shell offered leases and operating agreements to entities that sought to run Shell's service stations. The leases provided that the operators/lessees (Operators) had a lease interest in the service stations' convenience stores and car wash facilities. Operators retained all the profits from the convenience stores and car wash facilities.

The operating agreements were known as "Multi-Site Contractor Operated Retail Outlet Agreements" (MSO Contract). Under the MSO Contract, Operators operated the stations' fuel facilities for Shell in exchange for compensation from Shell.1 Shell owned the gasoline that was sold to customers. Shell received all the revenue from the fuel sales. Shell unilaterally set the fuel prices. Operators were required to complete daily gasoline price surveys from competing gas stations, submit that information to Shell, and then change the fuel prices as directed by Shell. Shell reimbursed Operators for the labor expenses associated with operating the fuel portion of the service station.

In addition to the daily price surveys, Shell required Operators to perform various tasks for the purposes of maintenance, safety, accounting, and maintaining Shell's brand standards. The tasks were set forth in the "MSO Site Operations Manual,"

*298which was produced by Shell. Although Shell required Operators to conduct certain tasks, "operator[s] always maintained control over the daily work of [their] own employees."

Some of the tasks that were required included: (1) daily inventory reconciliation of fuel-tracking the amount of fuel stored in Shell's tanks against the amount of fuel sold to customers; (2) routine maintenance of the car wash performed by certified technicians; (3) maintaining a file of station records, *294such as sales reports, any credit card imprints, and recorded "drive-offs"/non-payments; (4) on a daily basis, transmitting a report of fuel sales and credit card data; and (5) on a monthly basis, transmitting a report of convenience store and car wash sales.

One clause in the MSO Contract provided, "Operator has the right to select, hire, and discharge such employees, provided, however, Operator shall remove any such employee promptly upon [Shell's] request for good cause shown. [Shell] shall not select, hire, discharge, supervise or instruct any of Operator's employees." Another clause in the MSO Contract provided, "[Shell], its agents, and representatives may enter any [station], at all reasonable times, to inspect the facilities, procedures, and material being used in the sale of the Motor Fuel Products or other products, to obtain samples of and conduct tests on the Motor Fuel Products, to inspect the Records, and to audit, observe, and otherwise verify Operator's compliance with this Agreement."

Shell also provided Operators with an "Enhanced Customer Value Proposition Reference Guide" (CVP Guide). The CVP Guide was designed to help Operators meet Shell's brand standards by recommending certain tasks and frequencies for the performance of the tasks. Some examples: (1) fuel price signs should be clean and unobstructed, therefore signs should be inspected daily; (2) landscaping should be well maintained without weeds or garbage, therefore weeds should be pulled on a weekly basis and litter should be collected at least once a shift; and (3) the air and water machine should function properly, therefore, at the start of each shift, the machine should be inspected. The CVP Guide explained that because the Operators' stations are independent businesses, different methods or frequencies may be used than those recommended by Shell.

Shell also provided Operators with a "Retail Service Station Health, Safety and Environmental Reference Manual" (HSE Reference). The HSE Reference "contains summary information about various Federal health, safety and environmental laws and regulations." It also contains information about how to deter robberies.

From May 2001 to March 5, 2003, Curry was employed directly by Shell and worked at a station in Menifee. In March 2003, Curry began working at a gas station operated by Circle K Stores, Inc., which was not affiliated with Shell.

A.R.S., a limited liability company (ARS) had an MSO Contract and leases with Shell. "ARS operated approximately 15 gas stations throughout San Diego County and employed over 100 people at those stations." One of *295ARS's stations was the Via Rancho station. Another of ARS's stations was the Carmel Mountain station. The Via Rancho station and the Carmel Mountain station each had a convenience store and a car wash. Both stations had copies of the MSO Site Operations Manual, the CVP Guide, and the HSE Reference.

In July 2003, Curry met with an ARS employee who recruited Curry to manage the Via Rancho station in exchange for a $32,000 annual salary. Curry completed an ARS employment application, and then *299signed ARS's offer of employment. Curry was not required to read the MSO Site Operations Manual, CVP Guide, or HSE Reference.

ARS assigned Curry's job duties. Curry reported to ARS employees. Curry was trained by ARS employees. The cashiers supervised by Curry were ARS employees. In April 2004, Curry "was promoted by ARS to multi-site manager and at that time became manager of [a second station,] the Carmel Mountain Station." The cashiers Curry supervised at the Carmel Mountain Station were ARS employees.

Curry prepared daily reports for ARS. "Curry was instructed by ARS to conduct gas surveys and to transmit on a daily basis ... the information/results to ARS." When Shell inspected the two stations Curry managed, if Curry was present then she walked around the station with the inspector. Inspections occurred three to four times a year.

"ARS alone determined that Curry would be deemed an exempt employee, at which station(s) Curry would work, when she would work and what compensation and health and welfare benefits she should receive.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
233 Cal. Rptr. 3d 295, 23 Cal. App. 5th 289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/curry-v-equilon-enters-llc-calctapp5d-2018.