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Monday, September 10, 2001 VOLUME 2 ISSUE 37  

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Court Rules in Equilon’s Favor
Suit by 20 retailers lacked evidence, court says

LOS ANGELES — A U.S. District Court for the Central Division of California last month ruled against a group of Shell- and Texaco-branded retailers in the Los Angeles area, who had filed a suit against Equilon Enterprises LLC, claiming that its new franchise agreements and rent program were intended to drive them out of business and violated their rights under the Petroleum Marketing Practices Act, Equilon reported this morning.

According to Equilon officials, the court’s opinion was that the retailers had produced no credible evidence demonstrating a specific intent by Equilon to impact their business. It also determined that the agreements were found to be the result of a “careful, deliberative process, with the goal being the creation of uniform dealer agreements.”

“We are very pleased with the Court’s decision,” said David Burrow, Equilon’s general manager for the Pacific South region. “We felt confident that the evidence would support Equilon’s position that we developed the franchise agreements in good faith.”

Equilon, based in Houston, is a U.S. joint venture between Texaco and Shell Oil Co. Equilon refines and markets Shell- and Texaco-branded products in 32 states in the West and Midwest and includes Shell’s and Texaco’s nationwide transportation and lubricants businesses.


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