Allen v. Exxon Corp., No. 88-1593-M (S.D. Cal. 10-27-88) Slip Opinion

Injunctive relief denied to franchisees. After two years of negotiation, Exxon and Texaco agreed to exchange service stations located in Oregon and California. To comply with the PMPA, each company implemented a market withdrawal under this section from the area where it was giving up stations. The court held that the PMPA preempts California statute relating to the sale of leased marketing premises. The court found that the decision to withdraw from the market was not a sham to avoid PMPA and the leases offered by the successor franchisor were not discriminatory because they included rentals comparable to those charged successor fran-chisor's other franchisees.