§486H-2 - Wrongful or illegal termination; unreasonable nonrenewal; damages; defenses.
[§486H-2] Wrongful or illegal termination;
unreasonable nonrenewal; damages; defenses. (a) Except as provided in
section 486H-3, a petroleum distributor shall be liable to a gasoline dealer
who sells the products of the petroleum distributor under a franchise from the
distributor for damages and such equitable relief as the court deems proper
resulting from the wrongful or illegal termination or cancellation of the
franchise during its term or the petroleum distributor's unreasonable refusal
to renew the franchise.
(b) A gasoline dealer suffering damages as a
result of the termination or cancellation of, or failure to renew, the dealer's
franchise may bring an action under this section against the petroleum
distributor who wrongfully or illegally terminated, canceled, or unreasonably
refused to renew the dealer's franchise in the court of general jurisdiction in
which such petroleum distributor has the distributor's principal place of
business, is found, or has an agent. The action may be brought without regard
to the amount in controversy. If the gasoline dealer prevails in the action,
the dealer may recover actual damages sustained, the costs of the suit,
including reasonable attorneys' fees, and such equitable relief as the court
deems proper.
The court may also grant such temporary relief
as it may deem necessary and proper.
(c) It shall be a defense to any action
brought under this section that the franchise was terminated, canceled, or not
renewed because:
(1) The gasoline dealer failed to comply
substantially with essential and reasonable requirements of the franchise
agreement;
(2) The gasoline dealer failed to act in good faith
in carrying out the terms and provisions of the franchise; or
(3) Of any of the reasons enumerated in section 486H-3;
or
(4) Of other legitimate business reasons; provided
that a termination, cancellation, or failure to renew a franchise for the
purpose of enabling the petroleum distributor to assume operation of the
gasoline dealer's business shall not be considered to be a legitimate business
reason unless the gasoline dealer is paid reasonable compensation for the value
of the dealer's franchise, including goodwill.
(d) No action may be brought under this
section for a cause of action which arose more than two years prior to the date
on which the action is brought. [L 1975, c 133, pt of §1; gen ch 1985]