Valu Gas Inc. et al. v. Equilon Enterprises LLC, et al.
Published: Dec. 3, 2002 | Result Date: Oct. 17, 2002 | Filing Date: Jan. 1, 1900 |Case number: BC260592 Verdict – $71,490,700
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Thomas P. Bleau
(Bleau Fox APLC)
Defendant
Experts
Plaintiff
Daniel W. Bookhart
(technical)
Steven N. Williams
(Joseph Saveri Law Firm )
(technical)
Richard X. Hanson
(technical)
Defendant
Jeffrey Rouse
(technical)
Laurence A. Miller
(technical)
Facts
The plaintiffs are Shell-branded gasoline station franchisees. The defendants are Equilon Enterprises, LLC, a
joint venture between Shell Oil Company and Texaco formed in 1998, and three former and current employees
of Equilon, Burke Albeida, Milton Price and George Radici.
The plaintiffs brought claims for breach of contract arising out of EquilonÆs failure to maintain their stations
pursuant to the written lease with Equilon.
The other plaintiffs brought a claim for fraud arising out of the defendantÆs affirmative misrepresentation to the
plaintiffs that nothing could be done to lower the rent they were paying under the lease when, in fact, Equilon
had created a specific program that permitted a franchisee to challenge his or her rent by hiring an appraiser to
perform an appraisal of the land and equipment and improvements at the specific property. According to the
terms of the program, known as the "Interim Rent Challenge" the appraisal would then be used to calculate a
new rent, which would then be charged to the franchisee instead of the rent set forth in the lease.
As a result of the misrepresentation, the plaintiffs actually paid hundreds of thousands of
dollars in rent to Equilon, which they otherwise would not have had to pay had they been told of
the program. The plaintiffs claimed $5,465,705 which included overcharges in rent actually paid,
interest on the said amounts and lost goodwill value, which resulted from the fraud.
Settlement Discussions
The plaintiffs submitted a demand of $22,300,000; the defendants offered $93,000.
Deliberation
two days
Poll
10-2 (damages); unanimous as to liability
Length
18 days
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