Doebereiner v. Sohio Oil Co.

683 F. Supp. 791, 1988 U.S. Dist. LEXIS 3143, 1988 WL 33134
CourtDistrict Court, S.D. Florida
DecidedMarch 31, 1988
Docket88-8034-CIV
StatusPublished
Cited by3 cases

This text of 683 F. Supp. 791 (Doebereiner v. Sohio Oil Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Doebereiner v. Sohio Oil Co., 683 F. Supp. 791, 1988 U.S. Dist. LEXIS 3143, 1988 WL 33134 (S.D. Fla. 1988).

Opinion

ORDER

GONZALEZ, District Judge.

THIS CAUSE was heard by the court at an evidentiary hearing held March 16 and 17, 1988 on the Motion for Preliminary Injunction of the plaintiff, George Doeber-einer. Pursuant to Rule 52(a), Fed.R. Civ.P., the court now enters the following Findings of Fact and Conclusions of Law.

FINDINGS OF FACT

1. Plaintiff George Doebereiner has leased a service station at the intersection of Northlake Boulevard and Interstate 95 (1-95) in Palm Beach Gardens since 1978.

2. On March 25, 1986, plaintiff entered a new lease agreement with defendant So-hio Oil Company, d/b/a Gulf Products Division (GPD), for a three year term from April 1, 1986 through March 31, 1989.

*792 3. On October 30, 1987, plaintiff received a certified check from the defendant advising him that the lease would be terminated, effective January 31, 1988 pursuant to § 102(b)(2)(A) of the Petroleum Marketing Practices Act, 15 U.S.C. § 2801 et seq. The parties stipulated to continue the franchise pending this hearing.

4. Defendant seeks to terminate the lease agreement on the ground that plaintiff has failed to comply with the hours of operation provision contained therein. The lease requires the station to be open from 6 a.m. to 12 a.m. seven days per week.

5. Mr. Norm Graziani, District Manager of Gulf Products Division, Miami District, testified that the company determines hours of operation by considering several factors, including the location of the station, its proximity to the interstate, the nature of the surrounding area, the volume of traffic near the station and the number of competitors’ stations nearby and their hours of operation.

6. Plaintiffs station is located on a busy east-west road and is the first station off the interstate. The portion of 1-95 near plaintiffs station had been under construction and did not open to traffic until December 21, 1987.

7. Mr. Graziani testified that the location of plaintiffs station, the impending opening of 1-95, plus the hours of operation of competitors’ stations, led to the establishment of the hours prescribed in plaintiff’s lease.

8. Mr. Graziani also testified that the philosophy of GPD is to serve the motoring public in general and Gulf customers specifically. Maintaining competitive hours is an important element of developing and keeping regular customers. Mr. Graziani testified that a customer who frequently finds his regular gas station closed is likely to take his business to a competitor’s station with better hours.

9. Several individuals who operate gas stations under franchise agreements with competitors of GPD testified that their leases require them to open from 6 a.m. until 12 a.m. These dealers all operate stations close to plaintiff’s station.

10. Not all dealer-operated Gulf stations in the South Florida area are required to maintain the same hours as plaintiff’s station. The evidence established that the various hours of operation at different stations are based on the factors described above.

11. The prior lease agreement between plaintiff and GPD only required plaintiff to open the station between 7 a.m. and 10 p.m. GPD changed the hours provision in the new lease because the portion of 1-95 near plaintiff’s station was scheduled to open in 1987.

12. The evidence revealed that plaintiff did not comply with the 7 a.m. to 10 p.m. provision of the prior lease. GPD twice sent warning letters to plaintiff, advising him that he was in violation of the lease agreement for failing to remain open between 7 a.m. and 10 p.m.

13. In February 1986, plaintiff received the current lease agreement. Although he expressed dissatisfaction with the hours provision, plaintiff executed and returned the lease on March 26, 1986.

14. Plaintiff contends that he signed the lease after being assured by Mr. Graziani that GPD would review the hours if they were not mutually beneficial. This assurance was made in a letter sent to plaintiff by Mr. Graziani prior to the time plaintiff signed the lease.

15. Between April 1,1986 and February 2, 1987, plaintiff’s station was normally opened weekdays from 7 a.m. to 10 p.m. with shorter hours maintained on weekends.

16. In December 1986, Palm Beach County commenced road construction near plaintiff’s station. Plaintiff reduced his hours even more because business had declined as a result of the construction. Mr. Graziani conferred with plaintiff in June 1987 and agreed that plaintiff could close at 10 p.m. until the construction was completed, at which time plaintiff would have to comply with the hours provision in the lease.

*793 17. The road construction was completed in August 1987. Nevertheless, plaintiff continued to close early in violation of the lease agreement.

18. On August 24, 1987, Mr. Graziani sent plaintiff a warning letter which stated that further violations of the hours provision would result in termination of the franchise agreement.

19. Spot checks of plaintiffs station during the week of October 12-18, 1987 showed plaintiff closing at or before 10 p.m. Monday through Saturday and at 8 p.m. on Sunday. This violation led to the franchise termination letter dated October 30, 1987.

20. Plaintiff has maintained the lease hours since December 21, 1987, the day the 1-95 link near the station opened.

21. Plaintiff testified that he does not make any profit between the hours of 10 p.m. and 12 a.m. The gross profit after expenditures for gasoline averages $7.00 or $8.00 per night. Plaintiffs wife, who maintains the station’s books, testified that the station loses approximately $30.00 per night when it stays open until 12 a.m.

22. Plaintiffs financial statements for January 1986, January 1987 and January 1988 were introduced into evidence. Plaintiff testified to the net income and legal expenses for each of the three months. In January 1986, the net income was $986.00 and legal and financial expenses were $120.00. January 1987 showed a net income of $1,255.00 with legal and financial expenses of $140.00. Plaintiff testified that the legal and financial expenses of those months were representative of the usual amount paid each month.

23. The January 1988 financial statement reflected a negative net income of $7,387.00. However, during that month plaintiff incurred legal and financial expenses of $10,740.00 in connection with the termination of the franchise. Had plaintiff not incurred these legal expenses, his net income for the month would have been over $3,000.00, twice the net income of the previous January.

24. Plaintiff testified that the net income for the station varied from month to month, depending on what purchases were made in a given month. He also attributed the increase in income in January 1988 to a number of new accounts opened with the station and to a rebate check received by the business.

25. Plaintiff also testified that he had, on a number of occasions, requested that GPD provide him with a hi-rise “Gulf” sign, new computerized tanks and a security drawer.

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Cite This Page — Counsel Stack

Bluebook (online)
683 F. Supp. 791, 1988 U.S. Dist. LEXIS 3143, 1988 WL 33134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doebereiner-v-sohio-oil-co-flsd-1988.