Oshana v. Buchanan Energy, 2012 U.S. Dist. LEXIS 16920 (N.D. Ill. 2-10-12)
The court granted a motion to dismiss dealer's claim that franchisor failed to comply with the PMPA's notice requirements. The letter in question was a notice to cure a default, not a notice from the franchisor stating an intent to terminate the dealer's franchise.
The court denied a motion to dismiss dealer's challenge to a franchise termination based upon a failure to pay rent. The complaint alleged that the dealer had been ready, willing and able to pay the rent, but that the franchisor, in bad faith, failed to EFT the rent in order to set up a false ground for termination. The complaint also raised issues as to whether the rent in the proposed lease renewal had been established by the franchisor in good faith.
The court granted a motion to dismiss dealer, in his individual capacity, from lawsuit. Where franchise agreement was with dealer's business entity, dealer, in his individual capacity (even though designated as the "Key Individual" in the agreement), did not have standing to sue franchisor for alleged PMPA violation.