Mobil Oil Corp. v. Burdo

69 Misc. 2d 153, 329 N.Y.S.2d 742, 1972 N.Y. Misc. LEXIS 2145
CourtSuffolk County District Court
DecidedMarch 2, 1972
StatusPublished
Cited by9 cases

This text of 69 Misc. 2d 153 (Mobil Oil Corp. v. Burdo) is published on Counsel Stack Legal Research, covering Suffolk County District Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mobil Oil Corp. v. Burdo, 69 Misc. 2d 153, 329 N.Y.S.2d 742, 1972 N.Y. Misc. LEXIS 2145 (N.Y. Super. Ct. 1972).

Opinion

Oscar Murov, J.

This is a summary proceeding under article 7 of the Real Property Actions and Proceedings Law to recover possession of a gasoline station based upon an alleged breach of the respondent’s lease and supply contract with the petitioner landlord.

The respondent operated a gasoline station in the Town of Huntington, State of New York, pursuant to an annual lease with the petitioner. The respondent also entered into a retail dealer’s contract with the petitioner to sell its products.

The petitioner alleges that, in violation of its supply contract with the respondent, the respondent’s employee adulterated its products by adding regular gas to its premium tanks and selling this combination of fuels to motorists as premium gasoline. Accordingly, the petitioner asks this court to grant an order evicting the respondent and allowing petitioner to recover possession.

The respondent denies the allegations but contends, that in any event, the word adulterate ” as used in the supply contract,- does not include the mixing of two gasolines produced by the same supplier. Respondent also claims that the landlord xvaived the breach of the supply contract by not acting promptly when informed of it. The respondent stated that the petitioner, although notified of this incident on November 29, 1971, did not act upon it until January 3, 1972. During this interval the petitioner collected rent and supplied the respondent with numerous deliveries of gasoline. Based upon these actions the respondent contends that this court may properly find a waiver of the alleged breach by the petitioner. The respondent further contends that he was not present during the alleged incident and neither authorized nor condoned such a practice. Accordingly, the respondent contends that even if the incident occurred, he did not breach his contract with the petitioner since he should not be held accountable, in this instance, for the unauthorized acts of his employee. The respondent also requests this court to invoke its equity powers to prevent eviction on the grounds that it is too drastic a remedy which would terminate the respondent’s livelihood, investment and good will of his customers.

The court finds, after trial, as a matter of fact and law, the following:

[155]*155On November 28, 1971 and again on November 29, 1971, respondent’s employee did in fact siphon gasoline from the regular tank and deposit it in the premium tank. This fact has been established by a fair preponderance of the credible evidence. By the terms of the lease, a breach of the supply contract is a breach of the lease. Having proven this fact, it still remains to decide whether such mixing of fuels is an “ adulteration” under the terms of the supply contract. Paragraph Six of the reail dealer’s contract provides that the Buyer shall not mix any other products with the Seller’s products or adulterate them in any way.” The petitioner claims that such mixing violates the language and intent of the above-noted clause. The respondent denies this.

The respondent states in his brief that the landlord failed to establish that the tenant mixed any other products with Mobil’s or that he adulterated them in any way. The tenant alleges that the landlord is seeking to expand the meaning of the word adulterate ” by using it to categorize the acts of the tenant’s employee. The tenant states that the word as defined 11 by the law dictionaries and the general dictionaries, means to mingle or deteriorate by introduction of a foreign substance with the genuine article.” This being the case, respondent alleges that the mixing of fuels was not a breach of the supply contract. We do not agree.

The Random House Dictionary of the English Language defines “ adulterate ” as the following: To debase by adding inferior materials or elements; make impure by admixture; use cheaper, inferior, or less desirable goods in the production or marketing of (any professedly genuine article) ” (italics added).

The unabridged edition of Webster’s Third New International Dictionary defines ‘ adulterate ’ ’ as the following: “ 1 a: to corrupt, debase, or make impure by the addition of a foreign or a baser substance; prepare (as for sale) with one or more ingredients included that are not part of the alleged substance * * * (2): to sell (a commodity) under the name of another commodity * * * lessen the purity of ’ ’ (italics added). It seems abundantly clear that the word adulterate ”, as used in society and within the context and intent of the parties to the supply contract, was intended to prevent exactly what has taken place in this instance. We agree with the petitioner that, by adding regular gasoline of a lower octane rating to his supply of premium gasoline, the tenant was making his premium gasoline inferior.

[156]*156The court finds respondent’s definition of “ adulteration ” as untenable. While this is a civil matter now before this court, the acts by the employee may be a basis for further criminal action (General Business Law, § 391-a, subd. 4). The Legislature of this State has specifically stated that such mixing of fuels constitutes a fraud upon the consuming public and is punishable as a misdemeanor.

In his lease with the petitioner, the respondent agreed, in paragraph Four, that the premises shall not be used in connection with the sale of alcoholic beverages or any purpose prohibited by law, ordinance, covenant, condition or restriction ”. This court finds that even if the tenant could have supplied this court with some technical definitions of “ adulteration ” which would have supported his claim, the lease itself would be sufficient to define adulteration with sufficient clarity so as to include within its meaning the mixing of regular and premium gasolines. The tenant, by the terms of the lease, was put on notice that the mixing of fuels, an act prohibited by law, was not to be tolerated by the landlord. It is certainly clear to this court that the intention of the parties to the lease was violated by the employee’s acts.

The respondent argues that since the lease and supply contract were both drawn by the landlord ‘1 any ambiguity must be resolved in favor of the lessee ”. In support of this basic principle of contract law, the respondent cites several cases. This court does not differ with this principle of law, but rather, finds such ambiguity lacking in this case. We are mindful of the fact that where a landlord asks for termination of a lease based upon its breach, the court should proceed with caution since the continuation rather than the extinction of grants is favored. (Trent v. Corwin, 76 N. Y. S. 2d 198; Brause v. 2968 Third Ave. Leasing Co., 41 Misc 2d 348.) However, even though this court has strictly construed the lease and supply contract against their author, it is compelled to agree with the landlord that an adulteration ” has in fact occurred.

The tenant claims that, even if a breach of the contract can be found, the landlord waived such breach by waiting more than a month before notifying the tenant that it would act upon such breach and seek his eviction. The tenant alleges that during this period numerous gasoline deliveries were made to his station and that two months’ rent was paid. The trial established these allegations to be true. The tenant contends that such acts on the part of the landlord, in effect, waived the breach.

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Bluebook (online)
69 Misc. 2d 153, 329 N.Y.S.2d 742, 1972 N.Y. Misc. LEXIS 2145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mobil-oil-corp-v-burdo-nydistctsuffolk-1972.