Wine Country Gateway Recreational etc. v. Eagle Energy CA2/6

FACTS

The Wine Country Gateway Recreational Vehicle Park, LLC (WCG); Templeton Market and Deli, Inc.; Letters, Inc.; John Letters; and Abby Allen (collectively Plaintiffs) each operate independent service stations in Paso Robles, Templeton, and Santa Maria. Eagle Energy, Inc. (Eagle) is a fuel distributor. Eagle acts as a middleman between Phillips 66 Company, the manufacturer of 76 brand fuel, and independent service stations. In 2010 and 2013, Plaintiffs entered into 10-year contracts with Eagle to supply fuel to their service stations. Because fuel prices can fluctuate daily, sometimes even hourly, the contracts contain no set price for the fuel delivered. This is typical in the petroleum industry. 2016 Litigation In 2016, Plaintiffs sued Eagle alleging that Eagle was overcharging them for fuel. Plaintiffs claimed that under their contracts, Eagle could only charge them a specific market rate known as the dealer tank wagon or “DTW” rate, but that Eagle was charging them $0.03 per gallon more. Plaintiffs alleged causes of action for breach of contract, fraud, unfair business practices, and declaratory relief on their right to terminate their contracts. Eagle cross-complained…