SANTIAGO-SEPÚLVEDA v. Esso Standard Oil Co.

638 F. Supp. 2d 193, 2009 U.S. Dist. LEXIS 66537
District Court, D. Puerto Rico·Decided July 30, 2009·No. Civil 08-1950 (CCC)(JA), 08-1986 (CCC)(JA), 08-2025 (CCC)(JA), 08-2032 (CCC)(JA), 08-2044 (CCC)(JA)·Published·Cited by 6 cases

Opinion

OPINION AND ORDER

JUSTO ARENAS, United States Chief Magistrate Judge.

This matter is before the court on motions by plaintiffs from cases 08-1950, OS-1986, and 08-2025 to amend and/or vacate the partial final judgment that was entered on June 30, 2009. (Docket Nos. 288, 289, 291, 292.) Plaintiffs from cases 08-1950 and 2025 filed one of the motions pursuant to Federal Rules of Civil Procedure 52(b), 59(e) and 60(b) on July 13, 2009, and plaintiffs from case 08-1986 filed the other pursuant to the same rules on the same day. Defendant Esso Standard Oil (Puerto Rico), Inc. (“Esso”) filed a timely response in opposition on July 27, 2009. (Docket No. 295.) For the reasons set forth below, plaintiffs’ motion is DENIED.

I. PROCEDURAL AND FACTUAL BACKGROUND

As noted in the opinion and order granting partial final judgment, the facts of this ease have been recounted multiple times. See Santiago-Sepúlveda v. Esso Standard Oil Co. (P.R.), 582 F.Supp.2d 154, 156-74 (D.P.R.2008); (Docket Nos. 118, 145, 149, 228, 288.) Plaintiffs sought unsuccessfully to enjoin Esso from terminating their gasoline retail franchises. Nearly all plaintiffs then entered into franchise agreements with Total. 1 The judgment confirmed that Esso and Total had complied with the requirements of the Petroleum Marketing Practices Act (“PMPA”), 15 U.S.C. § 2801 et seq., in their dealing with plaintiffs. (Docket No. 288, at 21.) Pursuant to a severance clause within the franchise agreement executed between Total and plaintiffs, and in accordance with section 2805(f) of the PMPA, the judgment severed three provisions of the franchise agreement: one permitting Total to lease portions of the gasoline retail stations to third parties without a corresponding rent reduction to plaintiffs, one permitting Total to unilaterally increase the plaintiffs’ rent by improving the stations, and one requiring plaintiffs to purchase for resale only those products and services endorsed or favored by Total. The judgment did, however, find that two *197 other questionable provisions were permissible under the PMPA and Puerto Rico law: one placing non-competition restrictions on plaintiffs and one allowing Total to supply plaintiffs with “non-branded” gasoline for resale.

Plaintiffs now advance this motion to amend and/or vacate the judgment. They ask that the court make findings as to additional provisions of the franchise agreement, that it reconsider its finding that the non-compete agreement is valid, that it declare the franchise agreement null and void, and that it set aside the entry of judgment. They also request that the court set a briefing schedule so plaintiffs can further elaborate on the issue of contract validity.

Plaintiffs complain that not every contractual provision that they opposed in their complaints has been addressed by the court. Their complaints allege that the proposed franchise agreements are illegal because of the following terms: Total reserves the right to unilaterally change the rent charged to plaintiffs; Total charges a “transfer fee” to recover 60% of the “good will” value of the franchises; Total charges rental fees in excess of the amount permitted by Puerto Rico law; the franchise agreement allows Total to unilaterally terminate franchises without granting plaintiffs an opportunity to cure any deficiencies; Total requires that plaintiffs assume liability for fuel spills or leaks; Total requires that plaintiffs accept gasoline pumps, dispensers and other equipment as a “comodato,” or gratuitous bailment; Total failed to provide plaintiffs with an “offering circular” required by the Federal Trade Commission; and Total has not offered to compensate Plaintiffs for improvements plaintiffs have made in the leased premises. (Docket No. 2.) Not included in this list or addressed in this opinion and order are those provisions about which plaintiffs complained not because of the provisions’ inherent illegality, but because they were allegedly discriminatory. I have already found that Total’s contract terms are not discriminatory. Santiago-Sepúlveda v. Esso Standard Oil Co. (P.R.), 582 F.Supp.2d at 182.

II. STANDARD FOR A MOTION TO AMEND OR VACATE JUDGMENT

“No matter how a party titles it, ‘a post-judgment motion made within ten days of the entry of judgment that questions the correctness of a judgment is properly construed as a motion to alter or amend judgment under Fed.R.Civ.P. 59(e).’ ” Negrón-Almeda v. Santiago, 528 F.3d 15, 20 (1st Cir.2008) (quoting Global Naps, Inc. v. Verizon New Eng., Inc., 489 F.3d 13, 25 (1st Cir.2007)). I accordingly treat plaintiffs’ motion as such. Nat'l Metal Finishing Co. v. BarclaysAm./Commercial, Inc., 899 F.2d 119, 122 (1st Cir.1990) (the difference between Rule 59(e) and Rule 52(b) is not of “dispositive significance,” but “Circuit precedent suggests that challenges to the correctness of a judgment are properly construed as motions under Rule 59(e).”); Vasapolli v. Rostoff, 39 F.3d 27, 37 n. 8 (1st Cir.1994) (“Even if plaintiffs’ post-judgment motion were to be considered under Rule 60(b)(6) rather than Rule 59(e), the outcome would be the same.”).

“Rule 59(e) motions are granted only where the movant shows a manifest error of law or newly discovered evidence.” Prescott v. Higgins, 538 F.3d 32, 45 (1st Cir.2008) (affirming denial of a Rule 59(e) motion where movant “merely restate[d] the same arguments that he made in his opposition to summary judgment and in his cross-motion for summary judgment.”) (quoting Kansky v. Coca-Cola Bottling Co. of New Eng., 492 F.3d 54, 60 (1st Cir.2007)). “[A] motion for reconsideration should be granted if the court ‘has patently *198 misunderstood a party ... or has made an error not of reasoning but apprehension.’ ” Ruiz Rivera v. Pfizer Phams., LLC, 521 F.3d 76, 82 (1st Cir.), cert. denied, — U.S.—, 129 S.Ct. 180, 172 L.Ed.2d 241 (2008) (quoting Sandoval Díaz v. Sandoval Orozco, No. 01-1022, 2005 WL 1501672, at *2 (D.P.R. June 24, 2005)).

In all events, “[district courts enjoy considerable discretion in deciding Rule 59(e) motions, subject to circumstances developed in the case law.” ACA Fin. Guar. Corp. v. Advest, Inc., 512 F.3d 46, 55 (1st Cir.2008) (citing Venegas-Hernández v.

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SANTIAGO-SEPÚLVEDA v. Esso Standard Oil Co., 638 F. Supp. 2d 193, 2009 U.S. Dist. LEXIS 66537 (prd 2009).

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