Ayers et al. v. Marathon Ashland Petroleum LLC, 2007 U.S. Dist. LEXIS 79796 (S.D. Ind. 10-27-07)

Summary judgment granted to Marathon upholding franchise termination based upon franchisee dealer’s death. The dealer’s heirs claimed that the franchise termination violated PMPA Section 2806(b)(2) and Indiana’s Deceptive Franchise Practices Act (IDFPA), which permits a franchisee to designate a family member as a successor to the franchise under certain conditions. However, in this case, the dealer had not designated a successor in accordance with the IDFPA. Furthermore, the court held that the IDFPA only requires a franchisor to give a dealer’s heirs an opportunity to wind down the service station business, which Marathon had allowed in this case. The IDFPA does not prohibit termination of a franchise based upon the death of a dealer. If it did, it would be preempted by PMPA Section 2806(a)(1).