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Monday, September 24, 2001 VOLUME 2 ISSUE 39  

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Equilon Wins Dealer Suit
Request for $648,000 in fees denied

LOS ANGELES -- Consistent with its Aug. 17, 2001 ruling in the Coast Village v. Equilon case, the United States District Court for the Central District of California denied the plaintiffs' request to be awarded over $2,000,000 in attorney and expert witness fees. The plaintiffs were seeking $648,000 in attorney fees, plus a treble multiplier, and $66,685 in expert witness fees.

In a decision filed September 19, Judge Audrey Collins denied the plaintiffs' request stating that the plaintiffs “expressly failed to substantiate their claim'' that Equilon's new agreements were prepared in bad faith and for the purpose of driving the lessee dealers out of business.

The Coast Village v. Equilon case, filed by a group of 20 gasoline dealers operating in the Los Angeles area, claimed that the new franchise agreements and rent program were intended to drive them out of business and violated their rights under the Petroleum Marketing Practices Act (PMPA). Judge Collins found on August 17, 2001 that there was no evidence supporting their claim.

"After the Court initially ruled in Equilon's favor, we felt confident they would deny the plaintiffs' request for reimbursement of an excessive amount in fees," said David Burrow, general manager for Equilon's Pacific South Region. "Once again, this decision further reinforces Equilon's position that the new franchise agreements were developed in good faith."


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