Convenience Retailers, LLC v. Kambit, Inc., and consolidated actions & Irvine Fuel Exchange Inc., et al.
N/AOUTCOME:
The owner of three “76” fuel/service stations sought to evict the tenants/operators (our clients) of each station upon termination of the term of each lease. Federal law concerning fuel franchises did ... not afford our clients protection from eviction. In a case of first impression relying entirely upon the opinions of the Commissioner of Corporations (as there were no statutes or case law on point), judgement after court trial was entered in favor of our clients, finding that their service bay and convenience store businesses at the premises constituted a franchise under California law and the plaintiff had failed to follow statutorily mandated procedures for termination of a franchise. Our clients prevailed in the eviction proceedings, were allowed to continue possession of their businesses, and were awarded substantial attorney fees against the plaintiff. The judge presiding over the trial retired soon thereafter and went on to describe the case as one of the most interesting cases of his career. Subsequently, the owners of the 76 stations sought to terminate the franchises of each of our three clients, at which time we sued the fuel station owner and the fuel company, Phillips 66 (aka ConocoPhillips) for fraud and other claims. That hotly litigated case eventually resulted in a very successful settlement for our clients. Where they originally stood to lose their businesses without any compensation, we helped our clients maintain possession and continue to derive profits years after eviction proceedings were instituted and, eventually, they became the sole owners of the stations, including the land.
