Vold v. Marathon Oil Co.

407 F. Supp. 1011, 1975 U.S. Dist. LEXIS 11556
CourtDistrict Court, W.D. Kentucky
DecidedJuly 7, 1975
DocketCiv. A. C 75-0056L(A)
StatusPublished
Cited by3 cases

This text of 407 F. Supp. 1011 (Vold v. Marathon Oil Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vold v. Marathon Oil Co., 407 F. Supp. 1011, 1975 U.S. Dist. LEXIS 11556 (W.D. Ky. 1975).

Opinion

ALLEN, District Judge.

FINDINGS OF FACT AND CONCLUSIONS OF LAW

Plaintiff, Gordon A. Void, filed a complaint against the defendant, Marathon Oil Company, on February 21, 1975 seeking to have enjoined the actions and practices of the defendant varying and changing the terms of plaintiff’s credit on purchases of petroleum products for sale at retail, and also for varying and changing the method of rent payments and terms relating thereto contrary to law, equity and Federal Energy Administration Regulations.

Jurisdiction on the Court was bestowed by 28 U.S.C § 1381 (federal question), § 1332 (diversity) and § 1337 (commerce), as it arises under the Emergency Petroleum Allocation Act of 1973, 15 U.S.C. §§ 751 — 756, (hereinafter the Act). The amount in controversy exceeds $10,000.

On February 28th of this year, the Court entered a temporary restraining order enjoining the defendant from refusing to deliver gasoline to the plaintiff on terms other than load-to-load, and further reciting that plaintiff would receive a load of 7,700 gallons from the defendant on or before March 3, 1975. Plaintiff was required to post a bond in the form of cash or certified check in the amount of $1,500 which he did.

While this action was pending, defendant filed an action in the Jefferson County First Magisterial District Court seeking a writ of forcible detainer against the plaintiff from possession of the gasoline station occupied by him and owned by the defendant. The First Magisterial District found the plaintiff to have been guilty of the forcible detainer, and this Court enjoined the defendant from carrying out a writ of possession granted to it by the Magisterial Court, and from taking further steps in that court until the motion of the plaintiff for a preliminary injunction had been heard.

It was established at the hearing on the motion for a preliminary injunction that plaintiff had entered into a lease with the defendant of a gasoline station located in the Lyndon, Kentucky area, the lease being for a period of one year, subject to the right to renew at the end of each year. The lease provided that the lessee should pay as rent for the premises the sum of 1% cents per gallon for every gallon delivered to plaintiff’s station for resale, provided that the sum payable should not be less than $438 per month.

It was agreed, in paragraph 4 of the lease, that the time for rental payment, pursuant to the terms, was of the essence in the lease, and if lessee did not pay each and every installment on or before the day when it became due, defendant could declare the lease forfeited and terminated immediately without making demand for payment of the rent. The lease also gave Marathon the right to enter in and repossess the premises without demand or notice.

The lease was renewed in 1973 and again in 1974. When the lease was first entered into, the plaintiff was placed on the meter plan by the defendant and that policy continued until October, 1974, at which time he was placed on the load-to-load plan. Under the meter plan, the salesman of the defendant goes to the plaintiff’s filling station and calculates the number of gallons dispensed or sold for a previous seven day period. He does this on seven day increments and effects collection at that time.

Under the load-to-load method, the dealer is charged with paying for a previous load received or billed to him prior to receiving a second load of product.

On May 14, 1973, immediately before the Act went into effect, there were 120 Marathon dealers in plaintiff’s classification; 69 of these were on a load-to-load basis and 51 were on the meter plan. *1014 The meter plan method was not intended to be permanent or long-term but the primary purpose was to assist a new dealer in getting on his feet so that he could transfer to the load-to-load basis and become self-sufficient.

Plaintiff, with the exception of two months, did not sell sufficient gasoline to meet the minimum monthly rental payments. As a result, he was deficient in these payments at the end of the first and second fiscal years of his operation. He was allowed by the defendant to fall behind in his payments of these amounts and to liquidate them over a period of some five and one-half months in one year and over a shorter period of time in the other year.

On December 12, 1974, defendant sent to plaintiff an invoice stating that he owed Marathon $473.94 for the first quarter of fiscal 1974-75. On January 27, 1975, a second invoice was sent to plaintiff stating that he was deficient in the amount of $510.75, representing the arrearage on the second quarter rent on fiscal 1974 — 75. Following receipt of this second invoice, plaintiff took a check for approximately $1,300 to the defendant’s bulk plant in Louisville and left an order for an additional load of gasoline. This was on February 3, 1975, and when plaintiff did not receive a load within 48 hours, he called the defendant and was advised that he had been placed on a C. O. D. basis. At that time he was current, insofar as payments for the gasoline were concerned, but was in arrears on the minimum rent due to the tune of approximately $984.69. Very shortly thereafter, defendant thereupon failed to provide plaintiff with any gasoline for the month of February, and as a result, plaintiff only pumped a total of 3,500 gallons for that month, which he received through the offices of the Nay Oil Company. Gasoline was received by the plaintiff from the defendant on March 4th, pursuant to this Court’s order, and it has been so received since that time.

Plaintiff has four employees in his service, the only full-time one being his son and one of the part-time ones being his wife. His gasoline sales have varied from 17,738 gallons in August, 1974 to 3,512 gallons in February, 1975. In the month of April, 1975, his sales were approximately 15,500 gallons, and they have never exceeded 17,738 gallons since August, 1974, although it is obvious that a sale of 25,100 gallons per months would be the amount required to meet the minimum monthly requirements from gasoline sales.

Plaintiff was, for 34 years, a civil engineer, but subsequent to that time went into the filling station business to earn a living. Prior to becoming one of Marathon’s dealers, he was a Shell Oil Company dealer, and in that capacity lost some $7,000 in the last year of his operations with that company.

Plaintiff claims to have made a profit of $9,936 in his last fiscal year of operation, but the figures submitted by him are not completely convincing on this score, but be that as it may, it is obvious that he has fallen way short of meeting what was apparently the mutual hope of the parties that he could sell at least 25,100 gallons per month, and that any amount sold above 373,000 gallons a year might be considered an above-average or excellent performance.

Defendant claims that his relations with plaintiff have been unsatisfactory in that several bad checks were received by it from him, and that his open accounts became delinquent. However, it is established that all the bad checks were made good, and that the only amounts actually owing to the defendant are those for the rental payments.

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Cite This Page — Counsel Stack

Bluebook (online)
407 F. Supp. 1011, 1975 U.S. Dist. LEXIS 11556, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vold-v-marathon-oil-co-kywd-1975.