Class Action Dismissed

When Valero Energy Corporation and one of its affiliates were named as defendants in a nationwide class action lawsuit pending in federal court in Los Angeles, California, they turned to EMH for assistance. The plaintiffs alleged that Valero, along with several other major energy companies, including Chevron USA, Inc.; Exxon-Mobil Corporation; ConocoPhillips Company and BP Products North America Inc., had sold motor fuel to consumers that was advertised, marketed and distributed as having a higher octane rating when, in fact, the motor fuel contained a lower octane rating. The lawsuit sought hundreds of millions of dollars in damages. Acting quickly, we successfully filed a motion to dismiss, arguing that the plaintiffs’ claims were precluded by the combination of California laws and regulations that render Valero’s conduct with respect to single-nozzle dispensers the only lawful means to deliver fuel. Our motion was granted, and Valero was dismissed from the case before discovery commenced. We are now handling the appeal before the U.S. Circuit Court of Appeals for the Ninth Circuit. 

(Cause No. CV09-3343; Jonathan Alvarez, et al., v. Chevron Corporation, et al.; U.S. District Court for the Central District of California.)