Rittmiller v. Blex Oil, Inc.

624 F.2d 857
CourtCourt of Appeals for the Eighth Circuit
DecidedJuly 11, 1980
DocketNos. 79-1875, 79-1876
StatusPublished
Cited by26 cases

This text of 624 F.2d 857 (Rittmiller v. Blex Oil, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rittmiller v. Blex Oil, Inc., 624 F.2d 857 (8th Cir. 1980).

Opinion

SACHS, District Judge.

Benjamin Rittmiller d/b/a Ben’s Service and D. John, Inc. d/b/a Don’s Service appeal from an order entered in the district court for the District of Minnesota1 denying them preliminary injunctive relief. These actions have been combined for purposes of appeal. For the reasons set forth below, we affirm the order of the district court.

[859]*859Each plaintiff operates a service station that is owned by the individual defendant, Raymond Blexrud. The premises are occupied by plaintiffs without formal leases, on a monthly rental orally specified. The corporate defendant, Blex Oil, Inc. (“Blex”), owned by Blexrud, supplies gasoline to plaintiffs pursuant to oral agreements. The complaint alleges that the retail price that plaintiffs can charge for gasoline is set by oral agreement.

On June 25,1979, plaintiffs set their own gasoline prices, without approval from Blex. Shortly thereafter defendant Blexrud notified each plaintiff of a drastic increase in the monthly rent, to $5,000 per month from $250 and $175 respectively. Apparently after objections were made that such rent increases were coercive efforts to cause violations of the antitrust laws, the rent increases were rescinded, and plaintiffs were given notices of termination of their tenancies, effective September 1, 1979. Plaintiffs allege that defendants’ actions since June of 1979 are attempts to coerce plaintiffs to maintain retail prices at those levels set by defendant Blex.

The Court infers from a somewhat sketchy record that Blex tacitly acknowledges attempts to control the retail price of gasoline charged by plaintiffs at the service stations. Blex contends that plaintiffs have been managers of its service stations who are compensated by payment of a fixed commission, a number of cents per gallon sold. Compare, Simpson v. Union Oil Co., 377 U.S. 13, 84 S.Ct. 1051, 12 L.Ed.2d 98 (1964). Blex further contends that its responsibility for retail pricing of gasoline is asserted by the United States Department of Energy, which classifies it as a retailer, and that it has entered into a supply contract or Participation Agreement with Kerr-McGee Corporation, requiring that Blex maintain certain price margins as a “reseller-retailer” of gasoline. Kerr-McGee is bound by a consent decree which apparently contains price restriction provisions.

Plaintiffs’ four-count complaints are identical in all material aspects. Count One alleges a price-fixing conspiracy in the retail sale of gasoline, in violation of the federal antitrust laws. Plaintiffs claim $250,000 lost profits to be recovered threefold, with attorney fees. Count Two alleges that the individual defendant, Blexrud, has attempted to terminate plaintiffs' tenancies in retaliation for their independent pricing of gasoline. Plaintiffs seek injunc-tive relief under the federal antitrust laws. Count Three, asserting pendent jurisdiction, alleges a violation of the Minnesota antitrust laws by conduct previously alleged. Count Four, also a pendent jurisdiction claim, alleges that plaintiffs have acquired rights as franchisees under Minnesota’s franchise statute (Minn.St. § 80C.01 et seq.) and, by reason of the statute, are entitled to a temporary injunction against terminations.

Upon presentation of verified complaints and arguments of counsel, the district court issued temporary restraining orders, without prejudice, however, to proceedings in state court to evict plaintiffs under Minnesota’s unlawful detainer statute. After considering the affidavits of the parties and pertinent legal contentions, the temporary restraining orders were vacated by the district court on September 14, 1979, and motions for a preliminary injunction were denied. Motions to reconsider were thereafter denied, as were motions for injunctive relief pending appeal. This Court denied similar motions .prior to oral argument and again, on May 1, 1980, after argument.

The scope of review on appeal from an order granting or denying a preliminary injunction is limited. It has been repeatedly ruled that such an interlocutory order may be reversed only if the trial court abused its discretion or based its decision on an erroneous legal premise. Federal Trade Commission v. National Tea Co., 603 F.2d 694, 696 (8th Cir. 1979). In light of the “large degree of discretion vested in the trial court,” appellants carry a “heavy burden” when they seek to reverse the denial of a preliminary injunction. American Home Investment Company v. Bedell, 525 F.2d 1022, 1023 (8th Cir. 1975).

[860]*860It has been recently acknowledged that this Circuit has not fully resolved the articulation of guidelines to be used by the district courts in ruling requests for a preliminary injunction. Minnesota Association of Health Care Facilities, Inc. v. Minnesota Department of Public Welfare, 602 F.2d 150, 152 (8th Cir. 1979). A significant new formulation appeared two years ago in Fennell v. Butler, 570 F.2d 263 (8th Cir. 1978), where the Court directed the district court on remand to apply standards that have been used in the Second Circuit. The Second Circuit has held that a preliminary injunction is authorized upon a showing of either 1) probable success on the merits and possible irreparable injury or 2) sufficiently serious questions going to the merits to make them fair ground for litigation and a balance of hardships tipping decidedly toward the party requesting the preliminary relief. Sonesta International Hotels Corp. v. Wellington Associates, 483 F.2d 247 (2d Cir. 1973). These tests authorize the district court to examine summarily the merits of the dispute, the potential for immediate injury to the parties, and the availability of ultimate remedies less drastic than the granting of injunctive relief in the initial stages of litigation.

1. The Antitrust Claims

The district court ruled that plaintiffs have established “fair ground for litigation”. Plaintiffs do not argue for a more generous evaluation of their antitrust claims on appeal and do not brief the antitrust questions.

Plaintiffs’ affidavits filed in support of the motions for temporary injunctive relief tend to show that plaintiffs have been acting as independent dealers in recent years, thereby rendering illegal any retail price-fixing agreements with Blex. Assertions are made in defendants’ brief, however, which, if proven, would place some doubt on the nature of the distribution system and the illegality of the alleged pricing practices of defendant Blex.

Plaintiffs made no written request for a hearing and it has not been demonstrated that an oral request was made to the district court. In the absence of an adequate factual record and briefing, the Court cannot meaningfully question the district court’s tentative appraisal of the merits of the antitrust claims.

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624 F.2d 857, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rittmiller-v-blex-oil-inc-ca8-1980.