Rossi v. Mobil Oil Corp.

710 F.2d 821, 13 Fed. R. Serv. 1036, 1983 U.S. App. LEXIS 27143
CourtTemporary Emergency Court of Appeals
DecidedJune 2, 1983
DocketNos. 9-65, 9-67
StatusPublished
Cited by8 cases

This text of 710 F.2d 821 (Rossi v. Mobil Oil Corp.) is published on Counsel Stack Legal Research, covering Temporary Emergency Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rossi v. Mobil Oil Corp., 710 F.2d 821, 13 Fed. R. Serv. 1036, 1983 U.S. App. LEXIS 27143 (tecoa 1983).

Opinion

DUNIWAY, Judge:

In No. 9-65, Mobil Oil Corporation appeals from a judgment for Rossi and Siemer, based upon a partial summary judgment establishing liability and upon the verdict of a jury fixing damages. In No. 9-67, Rossi and Siemer appeal from the judgment and order denying a new trial. We affirm in both appeals.

[824]*824I. Background.

A. The Facts.

Plaintiffs Rossi and Siemer, doing business as a general partnership, leased from Mobil a retail motor gasoline service station in Costa Mesa, California. Their second three-year lease was to expire December 31, 1976, and pursuant to the lease Mobil gave notice that it would not renew. Negotiations for a new lease failed, but Rossi and Siemer did not vacate the premises. On April 19, 1978, Mobil brought an unlawful detainer action in Orange County Superior Court. That court entered a judgment on January 20,1981 that Rossi and Siemer had been in unlawful possession of the. service station since the lease expired on January 1, 1977. The judgment was stayed pending appeal, however, and on December 17,1982, the California Court of Appeal reversed the judgment in favor of Mobil. Mobil Oil Corp. v. Rossi, 138 Cal.App.3d 256, 187 Cal.Rptr. 845 (1982).

Mobil had been delivering gasoline and other petroleum products to Rossi and Siemer at the station under a Retail Dealer Contract. Mobil stopped deliveries in March 1978, with neither the consent of Rossi and Siemer nor the approval of the Department of Energy. Rossi and Siemer asked the Department on April 28, 1978, to order Mobil to resume deliveries and on June 19, 1979, the Department issued a Decision and Order requiring Mobil to deliver withheld supplies and to continue supplying Rossi and Siemer in the future. The Federal Energy Regulatory Commission affirmed that order on August 7,1980. Mobil has not brought a separate action attacking that decision.

While the agency action was pending, Rossi and Siemer opened another legal front by suing Mobil in federal district court for the Central District of California on June 13,1979. They asked the court for damages and an injunction requiring Mobil to resume regular deliveries and to provide, as well, all the gasoline that it had withheld from them since March 1978. The district court granted the injunction on September 19,1979, modifying it on October 1 by deleting the requirement that Mobil turn over to the retailer all the products it had withheld in past months. The court held for Rossi and Siemer on cross motions for summary judgment on October 30, 1981, and a jury awarded damages of $162,000.

B. The Law.

The Emergency Petroleum Allocation Act of 1973,15 U.S.C. § 751 et seq., and regulations under it, 10 C.F.R. Part 211 (1977), since expired, required Mobil, subject to various conditions, to allocate and deliver petroleum products to each operator of a retail outlet to whom it sold gasoline during each corresponding month in 1972. 10 C.F.R. § 211.9(a) (1977). The parties do not dispute that they were subject to what the regulations term a supplier/wholesale purchaser-reseller relationship, § 211.9(a)(2)(i), or that Mobil’s obligation to deliver gasoline supplies to Rossi and Siemer was regulated by the Act and the regulations. Those regulations provide that Mobil could stop deliveries to Rossi and Siemer only if the Department approved in writing, § 211.-9(a)(2)(i), or if Rossi and Siemer went out of business, within the meaning of §§ 211.-11(c) and 211.106(c). Because the Department did not approve Mobil’s cut-off of product deliveries to Rossi and Siemer, the legality of the termination is governed by § 211.11(c). The operator of a retail sales outlet “shall be deemed to have gone out of business with respect to that outlet for purposes of § 211.11 if it vacates the site on which it conducts such business.” 10 C.F.R. § 211.106(c)(1).

In the administrative proceedings, Mobil had argued that a supplier could stop deliveries when it reasonably believed that the retailer unlawfully occupied a retail outlet, because, by its unlawful occupation, the retailer is deemed to have gone out of business. The Department and Commission and the district court held that a supplier could not terminate deliveries to a retailer it believed to be in unlawful possession, but could be compelled by the Department to continue deliveries until a state court holds the retailer’s occupancy to be unlawful. The district court relied on the Department [825]*825and Commission orders that held Mobil to be in violation of § 211.11(e). It found that those orders did not exceed the agencies’ authority and were supported by substantial evidence.

II. Estoppel and Joinder.

Rossi and Siemer argue preliminarily that this court should not hear Mobil’s appeal because (1) Mobil is collaterally estopped by its failure to challenge the Department and Commission orders directly under § 211 of the Economic Stabilization Act of 1970, 12 U.S.C. § 1904 note, and (2) Mobil has not joined the Department as a party to this action.

A. Collateral estoppel.

Section 5(a)(1) of the Emergency Petroleum Allocation Act, 15 U.S.C. § 754(a)(1), incorporated by reference § 211 of the Economic Stabilization Act of 1970, 12 U.S.C. § 1904 note, providing for direct judicial review of orders issued under the Allocation Act’s authority. Section 210, 12 U.S.C. § 1904 note, permits private suits such as this one by persons claiming injury from any act or practice arising out of the Allocation Act. District courts have jurisdiction to hear suits brought under either section. Rossi and Siemer argue that because Mobil did not mount a direct attack under § 211 upon the Commission’s order affirming the Department’s finding of an Allocation Act violation, Mobil is estopped from contesting that finding in this proceeding.

“Offensive use of collateral estoppel occurs when the plaintiff seeks to foreclose the defendant from litigating an issue the defendant has previously litigated unsuccessfully in an action with another party.” Parklane Hosiery Co. v. Shore, 1970, 439 U.S. 322, 326 n. 4, 99 S.Ct. 645, 649 n. 4, 58 L.Ed.2d 552. We have held that where administrative proceedings “deal with specific issues between designated parties in enforcement or other determinative proceedings, ... the prevailing rule is that administrative determinations may be given collateral estoppel effect between the parties and their privies if they are the result of fair adversary hearings and are supported by substantial evidence ...” Atlantic Richfield Co. v. Federal Energy Administration,

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Bluebook (online)
710 F.2d 821, 13 Fed. R. Serv. 1036, 1983 U.S. App. LEXIS 27143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rossi-v-mobil-oil-corp-tecoa-1983.