Portland 76 Auto/Truck Plaza, Inc. v. Union Oil Co.

Good Law
153 F.3d 938·98 Daily Journal DAR 8897·1998 WL 484618·1998 U.S. App. LEXIS 20191·98 Cal. Daily Op. Serv. 6428
United States Court of Appeals for the Ninth CircuitAugust 19, 1998Nos. 95-35543, 95-36022California5,750 words

Opinion

Lead Opinion

Kleinfeld, J.

A fuel wholesaler improved one leased truck stop less than others. Did this violate the Robinson-Patman Act, 15 U.S.C. § 13 et seq., or Petroleum Marketing Practices Act, 15 U.S.C. § 2801 et seq.? The lease? The Robinson-Patman Act issue turns out to be especially difficult.

I. FACTS

Unocal made two agreements with Portland 76, in 1978. It leased a truck stop in Oregon to Portland 76, and contracted to sell Portland 76 motor fuel for resale. The lease in effect at the times relevant to most of the issues in this case ran from April 1, 1991 to February 28, 1994. No option to renew was included in the lease, and it provided for automatic expiration without notice February 28, 1994. The truck stop became seedy over the years. More attractive and convenient tack stops, including Unocal truck stops, could better attract truck drivers to pull in. Portland 76’s theory of the ease was that Unocal should have improved the truck stop commensurately with other Unocal truck stops, and in letting it go downhill, breached both its lease obligations and its Robinson-Patman duty not to discriminate among the retailers to whom it sold fuel.

The lease included an extraordinarily detailed…

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