G. DAMAGES : 2. § 2805(d)(1)(B) and (d)(2) Exemplary damages
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Four Corners Service Station, Inc. v. Mobil Oil Corporation, No. 89-300044-F (D. Mass. 12-2-93) Slip Opinion; aff'd, 51 F.3d 306 (1st Cir. 3-22-95)
Franchisee's failure to purchase minimum gallonage when its storage tanks were removed and contamination clean up commenced and failure to keep station open as a result was beyond its reasonable control. Franchisor found to have improperly terminated the franchise: (1) unclear whether franchisee who owned property for 60 years caused the contamination; (2) clean up was ordered by the state; (3) franchisor, who didn't own property, offered no assistance; (4) franchisee acted reasonably in attempting to cure despite the fact that franchisee failed to respond to state mandate to clean up site and (5) most of the gas was sold through a single location making a continued purchase from franchisor almost impossible. When a mutual termination was turned down, franchisor sent a timely notice of nonrenewal. Before the effective date of nonrenewal, franchisee sold the property. Exemplary damages not warranted, but is entitled to lost profits.
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