Iannuzzi v. EXXON CO., USA DIV. OF EXXON

572 F. Supp. 716, 1983 U.S. Dist. LEXIS 13094
CourtDistrict Court, D. New Jersey
DecidedOctober 4, 1983
DocketCiv. A. 82-1416
StatusPublished
Cited by4 cases

This text of 572 F. Supp. 716 (Iannuzzi v. EXXON CO., USA DIV. OF EXXON) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iannuzzi v. EXXON CO., USA DIV. OF EXXON, 572 F. Supp. 716, 1983 U.S. Dist. LEXIS 13094 (D.N.J. 1983).

Opinion

OPINION

GERRY, District Judge.

Plaintiff, Carolyn Iannuzzi, individually and as executrix of the Estate of Charles Iannuzzi, brought this action against defendant, Exxon Company, U.S.A., a division of Exxon Corporation (“Exxon”) for an alleged wrongful termination of a franchise agreement between Charles Iannuzzi and/or Carolyn Iannuzzi and Exxon. Plaintiff contends that the termination violated both the Petroleum Marketing Practices Act (the “PMPA”), 15 U.S.C. §§ 2801-2806 (Supp. II 1978), and the New Jersey Franchise Practice Act (the “New Jersey Act”), N.J.Stat.Ann., 56:10-1 et seq. (West Supp.1982), and also constituted a breach of contract under state common law. This action is before the court on Exxon’s motion for summary judgment.

I. Summary Judgment.

On this motion for summary judgment, pursuant to F.R.Civ.P. 56, Exxon, the moving party, has the burden of demonstrating that there are no genuine issues as to any material facts and that it is entitled to judgment as a matter of law. See Van Houten Service, Inc. v. Shell Oil Co., 417 F.Supp. 523 (D.N.J.1975), aff’d without opinion, 546 F.2d 421 (3d Cir.1976). Accordingly, the evidence presented to the court will be construed in favor of Mrs. Iannuzzi, *718 the party opposing the motion, Continental Insurance Co. v. Bodie, 682 F.2d 436 (3d Cir.1982); Hollinger v. Wagner Mining Equipment Co., 667 F.2d 402 (3d Cir.1981); Mid-West Paper Products Co. v. Continental Group, Inc., 596 F.2d 573, 579 (3d Cir. 1979); and she will be given the benefit of all favorable inferences that can be drawn from it. Peterson v. Lehigh Valley District Council, United Brotherhood of Carpenters and Joiners, 676 F.2d 81 (3d Cir.1982). Furthermore, any facts asserted by Mrs. Iannuzzi which are supported by affidavits or other evidentiary material are regarded as true. See Scott v. Plante, 532 F.2d 939 (3d Cir.1976).

Here, in addition to the presumption to which plaintiff is entitled, the facts as they appear in Mrs. Iannuzzi’s “Statement of Facts of the Case on Which There Exists Genuine Issues” in her original brief in opposition to the motion were not controverted by Exxon. See Reply Memorandum of Defendant Exxon in Support of Its Motion for Summary Judgment at 5. Exxon does, of course, dispute Mrs. Iannuzzi’s characterization of the legal effect of those facts.

II. Background.

Carolyn and Charles Iannuzzi owned property as tenants-in-common on which an Exxon service center was located in Malaga, New Jersey. (Deposition of Carolyn Iannuzzi, 12:1 — 4, 10-25.) During the first 15 years of the station’s operation, which presumably began in 1948, Mrs. Iannuzzi’s name appeared along with her husband’s on several agreements. It also appeared more recently on a number of documents, including a “First Refusal Option to Buy” which continued in effect until the termination of the franchise (id. at 101:10-16; 106:1-16), a General Guaranty and a financial statement. Furthermore, her name appeared as owner-operator of the station on New Jersey sales licenses, joint income tax returns and checks used in the course of business operations.

Furthermore, during Mr. Iannuzzi’s lifetime and after his death, Mrs. Iannuzzi performed numerous duties associated with the operation of the service center including: ordering products, maintaining credit card use, banking, bookkeeping, preparing and filing returns, paying bills and fees, paying employees and checking inventory. (Deposition of Charles Iannuzzi, Esq., 7:18-25; 8:1-5; 11:23-25, 17:18-25, 18:6-9, 19:12-14, 22:12-21 and 25:9-18; and affidavit of Carolyn Iannuzzi.) For purposes of this motion, the service center was run by both Charles and Carolyn Iannuzzi, with Charles being responsible for outside operations and Carolyn being responsible for inside operations.

Nonetheless, Mrs. Iannuzzi did not sign nor was she mentioned in the Sales Agreement entered into between Exxon and Charles Iannuzzi in February, 1976. Charles Iannuzzi and Exxon also entered into an Equipment Lease in June of that year. With the enactment of the PMPA in 1978, Mr. Iannuzzi was provided with statutory protection from arbitrary and discriminatory termination of his franchise by virtue of the Act.

The Sales Agreement formed the basis of the franchise as that term is defined in the PMPA. It provided in pertinent part as follows:

Breach and Termination: (a) It is agreed that if ...

Buyer dies ... then Seller may at any time thereafter (immediately or otherwise) terminate this contract by giving Buyer written notice of Seller’s election to do so and this contract shall expire and come to an end on the date fixed in said notice as if said date were fixed herein for the expiration of the term thereof.

(Emphasis added.)

On June 16, 1980, Charles Iannuzzi died. Exxon was put on notice of his death no later than two weeks from the time of his death. (Deposition of Charles Iannuzzi, 37:5-22, 39:10-25, 40:1-8, 42:15-22, 44:20-25; Deposition of Carolyn Iannuzzi, 21:3-12, 109:1-5.) Exxon continued to deliver fuel products to the service station until May 4, 1981.

*719 When Charles Iannuzzi died, the Department of Energy (the “DOE”) regulations under the Mandatory Allocation Program prohibited the revision of supplier/purchaser relationships except by mutual consent of the parties. Former 10 C.F.R. § 211.9. The DOE supply obligation ran to the station location and not to the individual dealer; the regulations specifically provided “[t]he supplier/purchaser relationships required by this part shall not be altered by changes in ownership .... ” Former 10 C.F.R. § 211.9(c) (emphasis added). Accordingly, Exxon had to continue to supply the service station here at issue as long as the regulatory program was in effect. Trigg v. Texaco, Inc., 511 F.Supp. 447, 449 (S.D.Tex.), aff’d, 665 F.2d 350 (5th Cir. 1981); Three J’s Speed Shop, Inc. v. Mobil Oil Corp., CCH Business Franchise Guide 91 7898 (E.D.Pa., August 31,1982).

On January 28, 1981, President Reagan issued Executive Order No.

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Bluebook (online)
572 F. Supp. 716, 1983 U.S. Dist. LEXIS 13094, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iannuzzi-v-exxon-co-usa-div-of-exxon-njd-1983.