Mac's Shell Service, Inc. v. Shell Oil Products, LLC, 2010 U.S. LEXIS 2203 (U.S. Sup. Ct. 3-2-10)

In a case that originated when a group of New England Shell dealers asserted that Motiva constructively terminated their franchises and constructively failed to renew their franchise relationships under the PMPA by substantially changing rental terms that had been in effect for years, the Supreme Court reversed the opinion of the First Circuit by holding that the dealers could not recover for constructive termination since they continued to operate their businesses after the change was imposed, and affirmed the finding that claims for constructive nonrenewal no longer exist once a franchisee signs a renewal agreement and continues to operate pursuant to it. Constructive termination, said the Court, must force "an end to the franchisee's use of the franchisor's trademark, purchase of the franchisor's fuel, or occupation of the franchisor's service station."

The Court also noted the availability of remedies under state law, and stated that the PMPA "pre-empts only those state or local laws that govern the termination of petroleum franchises or the nonrenewal of petroleum franchise relationships."