Yi v. Circle K Stores, Inc.

258 F. Supp. 3d 1075
CourtDistrict Court, C.D. California
DecidedJune 26, 2017
DocketCV 16-2171-RSWL-AJWx
StatusPublished
Cited by9 cases

This text of 258 F. Supp. 3d 1075 (Yi v. Circle K Stores, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yi v. Circle K Stores, Inc., 258 F. Supp. 3d 1075 (C.D. Cal. 2017).

Opinion

ORDER re: Defendant’s Motion for Summary Judgment or, in the Alternative, Partial Summary Judgment [30]

HONORABLE RONALD S.W. LEW Senior U.S. District Judge

Currently before the Court is Defendant Circle K Stores Inc.’s (“Defendant”) Motion for Summary Judgment or, in the Alternative, Partial Summary Judgment (“Motion” or “Motion for Summary Judgment”). Having reviewed all papers submitted pertaining to this Motion, the Court NOW FINDS AND RULES AS FOLLOWS: the Court GRANTS Defendant’s Motion [30],

I. BACKGROUND

A. Factual Background

Plaintiff operates a gas station in Los Angeles (“the Station”). Compl. ¶¶ 1, 4, ECF No. 1-1. His mother, the late Mrs. Oe Sun Yi (“Mrs. Yi”), previously operated the Station as a franchisee to ExxonMobil Corp., Inc. (“Exxon”). Id. at ¶¶ 6,18. Elizabeth Yi is Plaintiffs sister and Mrs. Yi’s daughter, and she is a non-party to the action. Decl. of Anthony D. Phillips (“Phillips Decl.”) Ex. A, at 15:20-23. Defendant owns and operates gas stations and convenience stores. See Compl. ¶ 2; Decl. of Timothy S. Tourek (“Tourek Deck”) ¶ 3.

Until 2011, Mrs. Yi was the franchisee and Exxon was her franchisor. Id. at ¶ 6; Phillips Decl. Ex. B, at 18:16-21. In June 2011, Exxon and Defendant agreed that Defendant would purchase Exxon’s property and contractual interest in approximately 400 Mobil-branded retail fuel stations in Southern California, including Mrs. Yi’s Station. Tourek Decl. ¶ 4. Pursuant to California Business & Professions Code § 20999.25(a), before Exxon sold the Station to Defendant, Mrs. Yi had a legal right to a bona fide offer from Exxon to purchase the Station. Id.

On October 20, 2011, Exxon sent Mrs. Yi the “Terms and Conditions of Bona Fide Offer of Sale” for the Station. Phillips Decl. Ex. D, at 4. Exxon offered to sell Mrs. Yi the Station for $2,611,000. Id. Defendant had sent Mrs. Yi a letter, dated October 7, 2011, entitled “Assignment Offer” (“Assignment Offer”), requesting that she assign Defendant her right to receive a bona fide offer from Exxon. Phillips Decl. Ex. E, at 131. In exchange for assignment of Mrs. Yi’s right to the bona fide offer, Defendant would be “willing to sit down ... and negotiate a mutually agreeable sale of the [Station] ... after [Defendant] [1079]*1079closes its purchase of the [S]tation from [Exxon].” Id. Before executing the Assignment Offer, Plaintiff called Timothy Tour-ek — the West Coast Vice President of Op-erátions at Defendant’s indirect parent company — asking where Mrs. Yi should fax the Assignment Offer. Phillips Deck Ex. B, at 62:3-63:3, 47:25-48:15. Mrs. Yi signed and Plaintiff faxed the Assignment Offer on her behalf by the due date. Id. at 44:13-14, 65:5-20.

In Fall 2013, a Hopkins Appraisal Report for Defendant appraised the Station at $3.6 million. Tourek Deck Ex. 1. On September 18,.2013, Plaintiff.emailed Defendant that he and Mrs. Yi would accept the Assignment Offer and planned “to exercise our option of negotiating a mutually agreeable sale of the [Station].” Phillips Deck Ex. J. On February 22, 2012, Defendant took title to the Station that it had agreed to buy from Exxon in June 2011. Tourek Deck ¶ 8.

In early 2014, Defendant performed a divestment analysis to determine whether it would .be beneficial to divest itself of several gas stations, including Mrs. Yi’s Station, or whether it should enter sale-leaseback transactions for those sites. Tourek Deck ¶ 12. Between February and July 2014, Defendant used a broker to gather purchase offer prices from third parties for the relevant gas Stations. Id. The third-party offer for Plaintiff and Mrs. Yi’s Station was $3.6 million. Id.

Plaintiff emailed Defendant on March 5, 2014, stating that he would seek to move forward with the sale “for the asking price.” Phillips Decl. Ex. K, at 2. On March 18, 2014, Mrs. Yi and Defendant executed a Contract of Sale and Station Lease (“Contract of Sale and Lease”), formalizing their franchisor-franchisee relationship. Tourek Deck Ex. 2. That same day, Mrs. Yi executed a “Successor in Interest Designation” form (“Successor in

Interest Form”), designating Plaintiff as primary successor in interest and Elizabeth Yi as alternate successor in interest pursuant to the terms in the Contract of

Sale and Lease. Phillips Deck Ex. I.

On May 29, 2014, Defendant sent Mrs. Yi a Non-Binding Letter of Intent inviting her to make an offer to purchase the Station, stating that it would consider the “highest and best offer.” Phillips Decl. Ex. M. Plaintiff offered to purchase the Station from Defendant for $2.6 million in a Letter of Intent dated June 29, 2014. Decl. of Mark Yi (“Yi Decl.”) Ex. 6. On October 1, 2014, Defendant counter-offered to sell the Station for $3.6 million. Phillips Decl. Ex. N. Plaintiff did not counter back.

Mrs. Yi died intestate on November 11, 2015. Phillips Decl. Ex. B, at 20:7-9. On December 22, 2015, Plaintiff emailed Defendant stating that he “would like to execute the survivorship” for the Station. Id at 182:24-183:11. On March. 18,. 2016, Defendant sent Plaintiff agreements that would assign him the franchise agreements as Mrs. Yi’s successor in interest (“Assignment Agreements”). Phillips Decl. Ex. B, at 192:23-24;. Ex. P. Plaintiff never executed them. Id.

Plaintiff continues to operate the Station and pays higher rent in light of the $3.6 million appraisal. Tourek Decl. ¶ 17. Upset that Defendant did not sell him or Mrs. Yi the Station at Exxon’s bona fide offer price or at the equivalent of .October 2011 fair market value, Plaintiff' filed the instant action.

B. Procedural Background

Plaintiff filed his Complaint on March 7, 2016 in the Los Angeles Superior Court [1-1]. Defendant removed the action to federal court on March 31, 2016 [1]. The Complaint asserted the following causes of action: (1) breach of contract; (2) breach [1080]*1080of the covenant of good faith and fair dealing; (3) fraud; (4) unfair competition in violation of California Business & Professions Code §§ 17200 et seq.\ (5) violation of California Business & Professions Code § 21140.6.

On April 6, 2017, Defendant filed a Motion for Summary Judgment as to the entire Complaint or, in the alternative, Partial Summary Judgment as to Plaintiffs requests for expectation damages and specific performance of certain claims. Def.’s Ntc. of Mot. for Summ. J. 1:23-36, 3:5-16, ECF No. 30. Plaintiff filed its Opposition on April 26, 2017 [32], and Defendant filed its Reply on May 2,2017 [36],

II. FINDINGS OF FACT

1. On or about October 20, 2011, Exxon sent Mrs. Yi a letter, “Terms and Conditions of Bona Fide Offer” which offered to' sell Mrs. Yi the Station for $2,611,000. Phillips Decl. Ex. D; Pl.’s Facts ¶ 11.' ’ '

2. On or about October 7, 2011, Defendant sent Mrs. Yi a letter titled “Assignment Offer.” Phillips Decl. Ex. E; Def.’s Stmt, of Undisputed Facts (“SUF”) ¶ 11; Pl.’s Stmt, of Genuine Disputes of Material Fact (“Pl.’s Facts”) ¶ 12.

3. The letter included the following provisions: “With this letter' we are requesting that you assign to [Defendant] your rights to receive a bona fide offer (or a right of first refusal) from [Exxon],” Phillips Decl. Ex. E; Def.’s SUF ¶ 12(a); PL’s Facts ¶ 12(a).

4.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
258 F. Supp. 3d 1075, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yi-v-circle-k-stores-inc-cacd-2017.