Sutton

THE PETROLEUM MARKETING PRACTICES ACT

The Petroleum Marketing Practices Act of 1978 (“PMPA”), 15 U.S.C. §§ 2801-2805 , remedied what Congress perceived as a disparity in bargaining power between oil companies (“franchisors”) and their retail service station franchisees (“franchisees”). PMPA prohibits franchisors from failing to renew franchises, except on specific grounds. 15 U.S.C. § 2802 (a)(2) & (b)(1)(B). Franchisors must give franchisees 90 days written notice of intent not to renew and the reasons for not renewing. 15 U.S.C. §§ 2802 (b)(1)(A) & 2804(a)(1) & (2), (c)(1) & (3)(A).

FACTS

Plaintiff William S. Sutton (“Sutton”) has operated a gasoline service station since 1970 under various leases and supply contracts with defendant Atlantic Richfield Company (“Arco”). Arco holds the station premises under a lease executed in 1968 from their fee owner, American-Hawaiian Properties. The lease (“base lease”), which runs until 1995, provides for payment of a minimum rent plus additional rent based on the quantity and price of gasoline sold on the premises.

In 1975, Sutton purchased the premises from American-Hawaiian, thereby becoming Arco’s landlord as well as Arco’s…