Telegram.com: Federal jury rules in favor of Shell franchisees, awards $3.3 million: “After a three-week trial, the jury found that Royal Dutch/Shell Group of Companies violated state and federal regulations by raising the price of wholesale gasoline to the dealers and ending a long-standing rent subsidy program. The franchisees sued four years ago, claiming Shell was attempting to drive them out of business so it could operate the stations itself.”; “The jury's $3.3 million award is likely to grow by millions when interest and attorneys fees are factored in, said the franchisees' lawyer, Gary Greenburg, who called the verdict a "total victory" for his clients.” (ShellNews.net) 9 Dec 04
By GREG SUKIENNIK
Associated Press Writer
BOSTON— A federal jury on Wednesday awarded $3.3 million in damages to eight Massachusetts Shell gas station franchisees who sued the parent company, claiming it unfairly raised wholesale gas prices.
After a three-week trial, the jury found that Royal Dutch/Shell Group of Companies violated state and federal regulations by raising the price of wholesale gasoline to the dealers and ending a long-standing rent subsidy program.
The franchisees sued four years ago, claiming Shell was attempting to drive them out of business so it could operate the stations itself.
The jury found the increases were not "commercially reasonable" and that the termination of the rent subsidy program violated the lease agreements between the company and the franchisees.
The jury's $3.3 million award is likely to grow by millions when interest and attorneys fees are factored in, said the franchisees' lawyer, Gary Greenburg, who called the verdict a "total victory" for his clients.
"Our clients have struggled mightily over the last several years," he said. "Several of these people worked for years for no wages or minimal wages and built true family businesses."
Shell had argued that the company's practices were not designed to drive the franchise owners out of business. A spokeswoman said the company plans to appeal.
"We remain convinced that our facility leases and wholesale gasoline pricing practices comply with our contractual obligations, are entirely lawful and are consistent with industry practices," Shell spokeswoman Karyn Leonardi-Cattolica said.
U.S. District Judge Rya Zobel is expected to hold a hearing within 30 days to determine interest and attorneys fees, Greenburg said.
The Shell stations whose owners sued are in South Boston, Scituate, South Attleboro, Walpole, Webster, West Boylston, Worcester and two in Southbridge.
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