Franchisee Owes Chevron Atty Fees: 9th Circ.

Law360, New York (September 12, 2011, 4:08 PM EDT) -- The Ninth Circuit ruled Monday that a Chevron USA Inc. franchisee owes the company about $1.5 million in attorneys' fees for bringing a frivolous Petroleum Marketing Practices Act counterclaim against the oil giant during a contract dispute.

Though in general, only franchisees may recover attorneys' fees under the PMPA, the appeals court found that Chevron was entitled to legal fees from M&M Petroleum Services Inc. in this instance because M&M had brought a counterclaim that was both frivolous and the product of perjury and other misconduct....
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