Bp West Coast Products Llc, a Delaware Limited Liability Company v. Raymond D. May Sharanjeet K. Ghumman, and Nandi, Inc. West Jet, Inc.

Good Law
447 F.3d 658·2006 WL 1133319·2006 U.S. App. LEXIS 10798
United States Court of Appeals for the Ninth CircuitMay 1, 200605-15076California2,785 words

Opinion

Opinion

Cowen, J.

Raymond May and Sharanjeet Ghum-man appeal the order of the district court granting summary judgment in favor of BP West Coast Products LLC (“BPWCP”). The district court concluded that BPWCP did not violate the Petroleum Marketing Practices Act (“PMPA”) when it sold its interests in the gas facilities operated by May and Ghumman and non-renewed its franchise relationships with May and Ghumman. The principal issue on this appeal is whether BPWCP acted in good faith and in the normal course of business when it determined to sell the facilities in compliance with the PMPA. We have jurisdiction pursuant to 28 U.S.C. § 1291 and will affirm.

I.

BPWCP owns the real property and improvements of several ARCO-branded gasoline facilities in the western United States. BPWCP leased some of the facilities to franchisees as lessee dealers. May and Ghumman were lessee dealers who operated gas stations and am/pm Mini Markets pursuant to written franchise agreements with BPWCP.

As lessee operators, they were required to pay monthly rent and royalties on fuel sales. They could not discontinue the ARCO brand at their facilities and had to renew their respective agreements with BPWCP every three…

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