Jefferson v. Chevron USA Inc.

713 So. 2d 785, 1998 WL 264006
CourtLouisiana Court of Appeal
DecidedMay 20, 1998
Docket98-CA-0254, 97-C-2436
StatusPublished
Cited by33 cases

This text of 713 So. 2d 785 (Jefferson v. Chevron USA Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jefferson v. Chevron USA Inc., 713 So. 2d 785, 1998 WL 264006 (La. Ct. App. 1998).

Opinion

713 So.2d 785 (1998)

Elmira P. JEFFERSON, et al.
v.
CHEVRON U.S.A. INC., et al.

Nos. 98-CA-0254, 97-C-2436.

Court of Appeal of Louisiana, Fourth Circuit.

May 20, 1998.

*786 Walter C. Thompson, Jr., James M. White, III, Mark P. Seyler, Barkley & Thompson, New Orleans, for Plaintiffs-Appellees Elmira P. Jefferson, et al.

Gene W. Lafitte, Marie Breaux, Karen Daniel Ancelet, Liskow & Lewis, New Orleans, for Defendant-Appellant Chevron, U.S.A. Inc.

*787 Before KLEES, PLOTKIN and McKAY, JJ.

KLEES, Judge.

This case comes before this Court on Chevron U.S.A.'s motion for summary judgment. Chevron has devolutively appealed from the trial court's denial of its motion for summary judgment as to plaintiffs' antitrust claims and has filed an application for supervisory writs from the ruling of the trial court on plaintiffs' non-antitrust claims. Although the trial court rendered judgment in plaintiffs' favor, plaintiffs answered defendant's appeal on the basis of statements made in the trial court's reasons for judgment. On joint motion of the parties, this Court consolidated the writ application with the present appeal.

For the reasons stated more fully herein, we affirm the trial court's judgment denying defendant's motion for summary judgment as to plaintiffs' antitrust claims. As to the trial court's ruling on plaintiffs' non-antitrust claims, we grant defendant's application for supervisory writs, vacate the ruling of the trial court and remand for further proceedings.

PROCEDURAL HISTORY

In March of 1994, the plaintiffs brought the present suit for damages against Chevron U.S.A. ("defendant") and three of Chevron's wholesale distributors. Plaintiffs alleged violations of the Louisiana Anti-Trust statute, LSA-R.S. 51:121, et seq., and violations of the Louisiana Unfair Trade Practices Act, LSA-R.S. 51:1401, et seq. Plaintiffs further asserted claims against defendant for other violations of state law, including breach of contract, abuse of rights, intentional interference with business relationship, misrepresentation and unjust enrichment.

Defendant answered plaintiffs' petition, and subsequently brought a motion for summary judgment. Following a hearing, the trial court denied defendant's motion and issued written reasons for judgment.

This devolutive appeal followed. While the usual procedural vehicle for seeking review of a denial of a motion for summary judgment would have been by supervisory writ, defendants were afforded an expedited right of appeal from the trial court's ruling pursuant to LSA-R.S. 51:135, a special provision for review of antitrust actions. However, the appellate jurisdiction conferred by LSA-R.S. 51:135 applies specifically to antitrust claims, and, absent irreparable injury, defendant has no right to appeal the denial of the summary judgment as to plaintiffs' non-antitrust claims. La. Code Civ. Proc. art.2083; Orleans Parish School Bd. v. Scheyd, Inc., 95-2653 (La. App. 4 Cir. 4/24/96), 673 So.2d 274. Accordingly, defendant sought supervisory writs of review of these issues, and this Court has consolidated this writ application with the present appeal. Thus, both the antitrust claims and the non-antitrust claims will be considered at this time, albeit through separate procedural vehicles.

FACTS

The following statement of facts is taken from plaintiffs' petition and from the documents submitted at the motion for summary judgment.

The plaintiffs in this case are current or former Chevron service station dealers in the Greater New Orleans area. Defendant Chevron U.S.A. refines, produces and manufactures various petroleum products and motor fuels, including gasoline and diesel fuels, and markets these products in three ways. First, it sells gasoline to branded independent dealers, such as plaintiffs, who also generally lease their service station outlets from Chevron. Second, Chevron sells gasoline to wholesalers and unbranded retailers, commonly referred to as "jobbers." Jobbers sell the gasoline to "jobber-supplied" stations under the Chevron insignia and trademark. Further, jobbers provide their own transportation for the delivery of motor fuels. Third, Chevron sells gasoline directly through Chevron-owned service stations operated by Chevron employees, or "co-op" stations.

The plaintiffs in this case represent the first level in Chevron's distribution system. Each of the plaintiffs in this case entered into Dealer Supply Contracts ("contracts") with Chevron that obligate them to buy all of their Chevron branded gasoline directly from *788 Chevron, and to pay "Company's [Chevron's] prices to Dealer in effect at the time and place of delivery for the particular product, grade, quantity and type of delivery involved, as established by Company from time to time." (Dealer Supply Contract, paragraph 3(b)). All but two of the plaintiff dealers also lease their stations from Chevron pursuant to a Lease Agreement containing a variable monthly rent computed partly on the basis of the number of gallons of Chevron fuel that the plaintiffs have sold each month. Chevron contends that it has a substantial financial investment in the acquisition, remodeling and maintenance of the leased stations and further maintains the environmental responsibility for the fuel purchased by the independent dealers.

Defendants Val J. Dauterive & Sons, Inc., Dade Vincent, Inc. d/b/a Metro Oil & Gas, and Huber Oil Company, Inc. are Chevron "jobbers" who purchase gasolines and diesel fuels from Chevron for resale, and who distribute those products to independent stations and retailers not bearing the Chevron trademark. By the terms of the contracts, Chevron prohibits the plaintiff dealers from purchasing Chevron motor fuels from Chevron's jobbers, and Chevron prohibits the jobbers from selling Chevron motor fuels to the plaintiff dealers. By this lawsuit, plaintiffs seek a declaratory judgment and injunctive relief prohibiting the defendant jobbers from refusing to sell fuel to plaintiffs. These defendants did not participate in the motion for summary judgment brought in the trial court by defendant Chevron, and plaintiffs' claims against these defendants are not part of this appeal.

The basis of plaintiffs' claims against Chevron is that Chevron arbitrarily manipulates the price of the fuel it sells to the independent dealers and unreasonably prohibits plaintiffs from purchasing the fuel at lower prices from the jobbers. The price the plaintiff dealers pay to Chevron for gasolines and diesel fuels is called the "dealer tank wagon," or "DTW" price. Based on the DTW price in effect, the plaintiffs set the price to the public or "street price." The price the jobbers pay for their wholesale supplies of motor fuels purchased from Chevron is referred to as the "rack" price, and the jobber-supplied stations set their street price accordingly. At the co-op stations, Chevron retains title to the fuel until it is sold to the public at the pump, and Chevron sets the street price for the gasoline.

Chevron periodically adjusts the prices for its fuels based on a zone pricing mechanism. Chevron has established price zones, which it refers to as "price reference areas," and Chevron makes "temporary competitive adjustments" based on the prices of the competition in the particular area. Plaintiffs allege that Chevron enhances the competitive advantage of its company-operated stations by dictating the DTW and the subsequent retail price charged by the plaintiff dealers.

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Bluebook (online)
713 So. 2d 785, 1998 WL 264006, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jefferson-v-chevron-usa-inc-lactapp-1998.