Fuels

Judge Dismisses Utica from Minimum Markup Suit

Case continues against Renew E-85

OSHKOSH, Wis. -- Winnebago County Circuit Court Judge Barbara Key has dismissed Utica Energy LLC from a lawsuit filed by 42 Green Bay, Wis., area convenience store operators accusing the company and Renew E-85 LLC ethanol stations of unfair gasoline pricing, reported The Oshkosh Northwestern. The case continues against Renew E-85.

After a hearing last Friday, Key determined there was "no disputed fact" that would require the Oshkosh ethanol producer to remain a part of the lawsuit, which seeks a total of $12 million in penalties [image-nocss] for violations of the state's Unfair Sales Act, also referred to as the minimum markup law, at Renew E-85's fuel station in Green Bay, said the report.

According to case filings cited by the newspaper, the c-store operators sought to prove Utica Energy "operated and managed Renew E85 LLC as its 'alter ego,' controlled pricing at its fuel stations and that Renew had no identity separate and apart from Utica," but Key ruled against the plaintiffs. The companies, in state incorporation documents, list the same business address, and Paul Olsen as the agent for both businesses.

Governor Jim Doyle has previously directed state agencies not to seek penalties against ethanol producers for Unfair Sales Act violations. Under the law, fuel stations are required to mark up the price of fuel sold to consumers in order to ensure fair competition. In the civil suit, the convenience store operators have argued their profits and operations have been harmed by Renew's decision to sell 10%, 20% and 85% ethanol fuel at their costs regardless of whether it is above or below posted fuel prices at Green Bay and Milwaukee motor vehicle fuel distribution centers.

Phil Younger of Renew, said Key's decision is positive, but does not resolve the overall lawsuit. "We're pleased about that first step, and we will have to see where it goes," he told the paper.

Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Foodservice

Opportunities Abound With Limited-Time Offers

For success, complement existing menu offerings, consider product availability and trends, and more, experts say

Snacks & Candy

How Convenience Stores Can Improve Meat Snack, Jerky Sales

Innovation, creative retailers help spark growth in the snack segment

Technology/Services

C-Stores Headed in the Right Direction With Rewards Programs

Convenience operators are working to catch up to the success of loyalty programs in other industries

Trending

More from our partners