Unified Dealer Group v. Tosco Corp.

MEMORANDUM AND ORDER

The lawsuit presents an issue of first impression: whether the Petroleum Marketing Practices Act (“PMPA”) permits a franchisor to condition renewal of a motor fuel franchise upon a change in the franchise trademark. Currently pending before the Court is the motion of defendants Tosco Corporation and Tosco Northwest Company (“Tosco”) for summary judgment on plaintiffs’ complaint. After carefully considering the papers submitted by the parties, including their supplemental memoranda, and having had the benefit of oral argument on June 11, 1998 and August 24, 1998, the motion for summary judgment is GRANTED.

BACKGROUND

I. Factual Background

Tosco is an independent refiner and marketer of petroleum products without its own source of crude oil. Tosco sells refined petroleum products, including motor fuel, at the wholesale and retail level. In 1994, Tosco acquired from BP Exploration & Oil, Inc. (“BP Exploration”) all service station properties owned or leased by BP Exploration in Northern California, together with marketing distribution facilities. Tosco also acquired from BP Exploration a license to use the “BP” trademark in California. The license expires on…