Nahabet
Nahabet v. Chevron Products Co.
Opinion
Lead Opinion
MEMORANDUM *
Michael Nahabet (“Nahabet”) appeals the district court’s grant of summary judgment in favor of Chevron USA (“Chevron”). We have jurisdiction over Nahabet’s timely appeal pursuant to 28 U.S.C. § 1291 , and we review the district court’s grant of summary judgment de novo. Clicks Billiards, Inc. v. Sixshooters, Inc., 251 F.3d 1252, 1257 (9th Cir.2001). Viewing the evidence in the light most favorable to Nahabet, we must determine whether there are any genuine issues of material fact and whether the district court correctly applied the relevant law. Robi v. Reed, 173 F.3d 736, 739 (9th Cir.1999). We affirm.
Nahabet’s failure to maintain and produce the Z Reports constituted a breach of a material and properly incorporated provision of the Dealer’s Lease. For that reason, Chevron could have rightfully terminated Nahabet’s franchise. On June 22, 2000, Chevron served Nahabet with a Notice of Termination which stated that Chevron intended to terminate Nahabet’s franchise in ninety days for failure to maintain required records. Chevron, however, included within the Notice of Termination an offer that Nahabet could cure his breach:
Nothing required Chevron to extend to…
Dissenting Opinion
Reinhardt, J.
dissenting.
The Petroleum Marketing Practices Act allowed Chevron, upon learning of grounds for termination, 120 days to issue a termination notice. 15 U.S.C. § 2802 (b)(2)(A)(i). Although Chevron possessed the right to terminate its lease with Nahabet, instead it provided him with a chance to cure his material breach in its Notice of Termination. Once given this opportunity, Nahabet could have cured his breach with “books and records,” and not only with the Z reports required by Chevron’s original Dealer Agreement. Nahabet did in fact provide his “books and records” to Chevron, albeit prior to receipt of the notice. Accordingly, there exists an unresolved factual issue as to whether Chevron could have conducted an adequate audit with the materials Nahabet furnished it: an issue that precludes summary judgment. I would therefore hold that the district court erred in granting summary judgment to Chevron. Accordingly, I respectfully dissent.