October Term 2009 · Docket 08-240

Does the PMPA cover rent hikes that force dealers out?

Dealers claim Shell raised rents to force them out. Shell says the law only covers formal terminations.

Official caption
Mac's Shell Service, Inc. v. Shell Oil Products Co.
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Verified source milestones

  1. — An official oral-argument transcript was verified.
  2. — An official oral-argument transcript was verified.

The arguments, in order

This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.

  1. Argument 1 ·

    What happened at the argument

    Mr. Lamken argued Congress enacted the PMPA to regulate specific actions.

    He stated the law targets termination and non-renewal.

    Mr. Farraher argued the jury found Shell engaged in prohibited conduct.

    He claimed Shell raised rents to force dealers out of business.

    Read the official transcript for this argument · Official argument details

    Sources used for this argument breakdown

A citizen's guide to the whole case

What this case is about

The case tests the scope of the PMPA. Dealers argue rent hikes count as termination. Shell argues the law requires a formal end to the contract.

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How the case got here

The Supreme Court heard oral argument in this case on January 19, 2010.

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What each side wants

Dealers want the PMPA to cover rent hikes that force them out.

Shell wants the PMPA to apply only to formal contract endings.

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What each side says

Dealers argue rent hikes are a prohibited constructive termination.

Shell argues the statute only covers explicit termination or non-renewal.

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What the justices asked

Chief Justice Roberts asked what Williston said about the contract.

Justice Kennedy asked if two franchisees facing the same rent hike get different results based on savings.

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Why it matters

The outcome defines the scope of federal franchise protection. It determines whether dealers can sue over economic pressure. It clarifies the boundary between state contract law and federal regulation.

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What happens next

This article currently covers the argument record. Use the official docket link for later case activity.

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Official Court provenance

Official docket and case history · Official Supreme Court oral-argument detail page

Title and summary sources

Revision history

  1. Revision 1 · Official Transcript ·

    Correction: Rewritten to the concise citizen-facing editorial standard.

  2. Revision 2 · Official Transcript ·

    Correction: Migrated to the dated official Court activity contract without model use.

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