Sgro v. Getty Petroleum Corp.

854 F. Supp. 1164, 1994 U.S. Dist. LEXIS 8352, 1994 WL 272988
CourtDistrict Court, D. New Jersey
DecidedJune 17, 1994
DocketCiv. A. 91-2007 (MLP)
StatusPublished
Cited by19 cases

This text of 854 F. Supp. 1164 (Sgro v. Getty Petroleum Corp.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sgro v. Getty Petroleum Corp., 854 F. Supp. 1164, 1994 U.S. Dist. LEXIS 8352, 1994 WL 272988 (D.N.J. 1994).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

PARELL, District Judge.

I. INTRODUCTION

This is an action in which plaintiff Anthony P. Sgro (“Sgro”) sues defendant Getty Petroleum Corp. (“Getty”) seeking specific performance of an alleged contractual obligation to remove underground petroleum tanks located on Mr. Sgro’s property, and seeking damages for alleged breach of contract and tor-tious interference with plaintiffs actual and/or prospective economic advantage. Defendant counterclaims for damages from plaintiff in the amount of increased removal costs, in the event that plaintiff is granted specific performance.

This Court has jurisdiction pursuant to 28 U.S.C. § 1332 based upon diversity of citizenship between plaintiff, a resident of New Jersey, and defendant, a Delaware Corporation having its principal place of business in New York. The amount in controversy ex- *1169 elusive of interest and costs exceeds $50,000. The following are the Court’s findings of fact and conclusions of law following a non-jury trial, pursuant to Rule 52(a) of the Federal Rules of Civil Procedure.

II. FINDINGS OF FACT

Plaintiff owns property (“the property”) located at 845 Broadway in West Long Branch, New Jersey. He purchased the property in or about June, 1985. The prior owner had leased it for a number of years to Getty (and its predecessors and sub-tenants) for use as a Getty gas station, and when Sgro acquired the property it contained various items of equipment owned by Getty including signs, gas pumps, a tire machine, an in-ground lift, and several underground storage tanks (“the tanks”). Shortly after acquiring the property, Sgro entered into an oral arrangement with Getty whereby the property would be supplied with Getty petroleum products, and would be operated as a Getty service station by plaintiff. In connection with that arrangement the parties entered into a written Equipment Loan Agreement (Ex. J — 1) 1 . A Dealer Supply Contract (Ex. J-4) and other proposed contracts were prepared at that time, but were never executed by the parties.

The items of equipment owned by Getty at the property, including the underground tanks, were used by plaintiff subject to the terms and conditions of the Equipment Loan Agreement. That Agreement provided that upon the expiration or other termination of the agreement, plaintiff was obligated to return Getty’s equipment to it. The Equipment Loan Agreement also provided the following with respect to Getty’s rights in the equipment at termination of the Agreement:

If the Equipment is not sold by Company to Operator, a succeeding supplier of petroleum products, or to any other party, then Company may without notice to Operator enter at any time upon the Station or any other premises of Operator and take back said equipment; ...

(Ex. J-l ¶ 3(b).)

Plaintiff and his family and persons hired by them operated the property as a Getty station from on or about July 1, 1985 until approximately October, 1987, when plaintiff stopped operating that business and closed the Getty station. Plaintiff apparently continued to operate the adjacent property, an auto body shop which he had owned and operated for 30 years.

On November 2, 1987 plaintiffs attorney, Gary Fox, Esq., sent a letter to Getty requesting that it remove its equipment from the property as soon as possible. (Ex. J-ll.) That letter further stated:

We also request that you have the soil tested and provide to us certificate stating that the soil is clean, in accordance with all EPA and ECRA environmental standards. We would also request that you repair any holes in the pavement, which the removal of the aforementioned may create by filling the holes with clean sand, trap rock and covering same with an appropriate cover of black top consistent with the black top in the surrounding area.

(Ex. J-ll.)

Following receipt of that letter, Getty promptly began the preparations for removing the equipment by issuing a work order on November 20, 1987, (Ex. J-17), to Lombardo •Equipment Company (“Lombardo”), an independent contractor. Before Lombardo commenced performance on the job, however, plaintiff himself orally contacted Getty and told Getty that he continued to be interested in leasing the property as a gas station, either to Getty or to another company. Plaintiff thereafter negotiated with various entities, including Getty, Globe Petroleum Co. (“Globe”) and Century Oil U.S.A., Inc. (“Century”). 2 Getty accordingly instructed Lombardo to await further instructions regarding removal of the equipment.

*1170 As of March, 1988 plaintiffs negotiations with Getty were not reaching fruition; his negotiations with Globe had ended; and Century had indicated to plaintiff and to Getty that it would want Getty’s equipment removed if it leased the property. Getty therefore revived its preparations to remove the equipment, including the underground tanks, by issuing a Request for Bid, (Ex. J-39), which again resulted in Getty engaging the Lombardo firm to perform the removal. The work was scheduled to begin on March 11, 1988. However, when the Lombardo crew arrived that day, plaintiff only permitted Lombardo to remove the signs and gas pumps, and would not discuss the scheduling of a date for the contractor to remove the rest of Getty’s equipment. (Ex. D-l and testimony of Adel Hreiz and Thomas Lom-bardo.)

On May 23, 1988 Edward Delaney, Getty’s Field Sales Manager, wrote to plaintiffs attorney, Gary Fox, Esq., stating that since Mr. Sgro had refused to discuss further equipment removal directly with Getty representatives, Getty was requesting through Mr. Fox’s office “a date when all equipment may be either removed or sold to Mr. Sgro.” (Ex. J-6.) In response, Mr. Fox wrote to Getty on August 29, 1988, stating inter alia as follows:

[P]lease be advised that client is requesting that you remove all of the fixtures on the property by two weeks from today’s date, including gas tanks, light posts, signs, in ground lift and air compressor.
In addition, we are going to require that you provide us with a certification, consistent with federal law, that the property is in a “clean state” after removal of the gas tanks.

(Ex. J — 8.)

The same letter also discussed a dispute which had arisen between the parties concerning a balance due to Getty in a stated invoice amount of approximately $1,900. Further, the letter stated:

We have a prospective tenant that is interested in leasing the property as of September 1, 1988. In fact, as a result of the problems that you caused for us with Century Oil, the property has been off the market since November of 1987.

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Bluebook (online)
854 F. Supp. 1164, 1994 U.S. Dist. LEXIS 8352, 1994 WL 272988, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sgro-v-getty-petroleum-corp-njd-1994.