Naph-Sol Refining Co. v. Cities Service Oil Co.

506 F. Supp. 77, 1980 U.S. Dist. LEXIS 9672
District Court, W.D. Michigan·Decided May 28, 1980·No. No. G78-85 C.A·Published·Cited by 3 cases

Opinion

ON PLAINTIFF’S MOTION TO STRIKE DEFENSES.

FOX, Senior District Judge.

The court hereby adopts the following findings of fact and conclusions of law with respect to the motion of plaintiff Naph-Sol Refining Company to strike the First, Second and Third Defenses from the answer of defendant Cities Service Oil Company in the above-captioned action:

FINDINGS OF FACT

(1) This action was commenced by plaintiff Naph-Sol Refining Company against defendant Cities Service Oil Company and defendant Department of Energy on February 21, 1978.

(2) In this action, plaintiff seeks to recover alleged price overcharges and attorneys’ fees resulting from sales of motor gasoline by defendant Cities Service Oil Company to plaintiff at prices allegedly in excess of those permitted by the Mandatory Petroleum Price Regulations of defendant Department of Energy.

(3) On September 15,1976, plaintiff instituted another action against Cities Service Oil Company in this court, Civil Action No. G76-451, in which plaintiff sought to recover treble damages and attorneys’ fees with respect to alleged price overcharges on sales of motor gasoline by defendant Cities Service Oil Company to plaintiff at prices allegedly in excess of those permitted by the Mandatory Petroleum Price Regulations of the Department of Energy.

(4) The complaints in both actions relate to the same sales of motor gasoline by defendant Cities Service Oil Company to plaintiff beginning in January 1974 and continuing to the present date.

(5) There has been no final judgment in either action.

(6) In its First Defense contained in its answer in this action, defendant Cities Service Oil Company alleges that plaintiff has split its cause of action and that the complaint must be dismissed because of the pendency of the previous action, which abates all other actions.

(7) In its Second Defense in its answer in this action, defendant Cities Service Oil Company alleges that final judgment in the previous action will bar the complaint in this action on the basis of res judicata.

(8) In its Third Defense in its answer in this action, defendant Cities Service Oil Company alleges that the statute of limitations bars portions of the relief sought by plaintiff.

CONCLUSIONS OF LAW

(1) In Ashland Oil Co. of California v. Union Oil Co. of California, 567 F.2d 984 (Em.App.1977), cert. denied, 435 U.S. 994, 98 S.Ct. 1644, 56 L.Ed.2d 83 (1978), the Temporary Emergency Court of Appeals held that Section 210 of the Economic Stabilization Act creates separate and distinct causes of action for compensatory damages and for exemplary damages and that either type of relief could be sought in a single action or in separate actions.

(2) For these reasons, the First Defense in the answer of defendant Cities Service Oil Company is insufficient as a matter of law and should be stricken.

[80]*80(3) The doctrine of res judicata is inapplicable because there has not been a final and conclusive adjudication of the issues between the parties in either action.

(4) For these reasons, the Second Defense in the answer of defendant Cities Service Oil Company is insufficient as a matter of law and should be stricken.

(5) Neither the Emergency Petroleum Allocation Act nor Section 210 of the Economic Stabilization Act contains a statute of limitations. In such circumstances, a federal court should apply the most analogous state law if it is consistent with the underlying policies of the federal statute. Ashland Oil Co. of California v. Union Oil Co. of California, supra.

(6) The most analogous state statute of limitations to an action to recover compensatory damages under Section 210 of the Economic Stabilization Act is Section 600.-5813 of Michigan Statutes Annotated, which prescribes a six-year period of limitations for personal actions where no other limitation period is stated in the applicable statute. Walper v. Knowles, 295 Mich. 687, 295 N.W. 363 (1940); Sweet v. Shreve, 262 Mich. 432, 247 N.W. 711 (1933); Case v. Goren, 43 Mich.App. 673, 204 N.W.2d 767 (1972); Fries v. Holland Hitch Co., 12 Mich. App. 178, 162 N.W.2d 672 (1968); Schreiber v. Loew’s Inc., 147 F.Supp. 319 (W.D.Mich. 1957); Schram v. Lucking, 31 F.Supp. 749 (E.D.Mich.1940), affirmed, 117 F.2d 160 (6th Cir. 1941).

(7) Because plaintiff seeks in this action to recover compensatory damages for overcharges beginning in January 1974, and this action was commenced within six years thereafter, no portion of plaintiff’s claim for relief is barred by the applicable state statute of limitations.

(8) For these reasons, the Third Defense in the answer of defendant Cities Service Oil Company is insufficient as a matter of law and should be stricken.

IT IS THEREFORE ORDERED, ADJUDGED AND DECREED that the motion of plaintiff to strike the First, Second and Third Defenses contained in the answer of defendant Cities Service Oil Company in this action is hereby granted.

ON MOTION OF DEFENDANT DEPARTMENT OF ENERGY TO DISMISS AS TO IT OR, IN THE ALTERNATIVE, BE DROPPED AS A PARTY

The court hereby adopts the following findings of fact and conclusions of law with respect to the motion of the Department of Energy to dismiss the complaint in the above-captioned action as to it or, in the alternative, to be dropped as a party:

FINDINGS OF FACT

(1) This action was commenced by plaintiff Naph-Sol Refining Company against defendant Cities Service Oil Company and defendant Department of Energy on February 21, 1978.

(2) In this action, plaintiff seeks to recover alleged price overcharges and attorneys’ fees resulting from sales of motor gasoline by defendant Cities Service Oil Company to plaintiff at prices allegedly in excess of those permitted by the Mandatory Petroleum Price Regulations of defendant Department of Energy.

(3) On April 24, 1978, defendant Department of Energy filed its answer.

(4) On December 19, 1979, the Department of Energy finally adopted the Proposed Consent Order entered into on October 30, 1979 by the Department of Energy and Cities Service. In that Order the Department of Energy agrees that Cities Service’s “determinations ... of its classes of purchaser for gasoline . are correct.” 44 Fed.Reg. 75233 (Dec. 19, 1979).

(5) Cities’ Objections to Plaintiff’s Proposed Findings of Facts and Conclusions of Law on Plaintiff’s Motion for Partial Summary Judgment were based largely upon its view that the Department of Energy had made a finding that its classes of purchaser were correct.

(6) A dispute has arisen concerning the scope and validity of the December 19,1979 Order.

[81]*81 CONCLUSIONS OF LAW

(1) In Dyke v. Gulf Oil Corporation

Naph-Sol Refining Co. v. Cities Service Oil Co., 506 F. Supp. 77, 1980 U.S. Dist. LEXIS 9672 (W.D. Mich. 1980).

506 F. Supp. 77 (Naph-Sol Refining Co. v. Cities Service Oil Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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