Fuels

The Chicago 17

BP owners say company failed to comply with Illinois franchise, contract law
CHICAGO -- The owners of 17 BP-branded gas stations/convenience stores in metropolitan Chicago and northwestern Indiana have brought a lawsuit against BP for failing to comply with the Illinois Franchise Disclosure Act (IFDA) and basic contract law, essentially contesting the accuracy of fluctuating gasoline prices passed along to consumers. On Tuesday, attorneys filed an amended claim for the 17 stations.

The plaintiffs bring a variety of legal claims, including: BP's sale of gas station and c-store franchises without complying with the consumer protection provisions [image-nocss] of the IFDA. Fraud by BP in a "sealed-bid" process which was overseen by co-defendant NRC in inducing the plaintiffs to become the owner/operators of BP branded gasoline stations and c-stores, and to purchase real estate and other assets from BP at inflated prices. Breach of contract by BP in failing to set its gasoline prices in good faith and assigning the fuel supply contracts to jobbers (co-defendants Atlas and Graham), which led to even worse pricing for these dealers and their customers. Breach of contract by BP in converting from the BP Connect/Wild Bean Cafe c-store to ampm, which is a lower-grade program, without doing adequate market research. The station owners contend that after selling them their BP stations with "lofty" promises of success and locking the dealers into 20-year commitments in which they are not permitted to convert their stations to other brands, BP and its jobbers are now setting their prices in ways that are calculated to drive the dealers out of business and to force them to sell out at huge losses.

The 17 stores are in Glen Ellyn, Downers Grove, Elmhurst, Yorkville, Oswego (2), Aurora, Romeoville (2), Plainfield, Joliet, Elk Grove Village, Orland Park, Crestwood, Chicago and Wauconda, Ill., and Munster, Ind.

"These owners are fighting BP to bring the best possible gasoline prices to the customers," said the plaintiffs' attorney, Carmen Caruso of Chicago-based Stahl Cowen.

Scott Dean, a spokesperson for BP, Naperville, Ill., told CSP Daily News that the company has "no comment on pending litigation." Chicago-based NRC also had no comment by press time.

BP supplies more than 15 billion gallons of gasoline every year to U.S. consumers through 12,000 retail outlets. BP is the single, global brand formed by the combination of the former British Petroleum, Amoco, ARCO, ARAL and Burmah Castrol.

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