AM/PM Franchise Assn. v. Atlantic Richfield Co.

584 A.2d 915 (1990)

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AM/PM Franchise Assn. v. Atlantic Richfield Co.

Pennsylvania Supreme Court
584 A.2d 915 (1990)

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Facts

Atlantic Richfield Co. (ARCO) (defendant) entered into franchise agreements with the AM/PM Franchise Association (Association) (plaintiffs) for the lease of gas stations. The lease required the Association to only sell ARCO gasoline. From 1982 to 1985, ARCO experimented with its own unleaded gasoline formula and then supplied it to the Association. The Association claimed ARCO’s gasoline caused damage to customers’ vehicles. The Association further claimed that profits fell during this period and sued ARCO for breach of warranty seeking consequential damages based on lost profits. The trial court found that the Association’s damages stemmed from lost good will, which was too speculative. The Superior Court affirmed this decision. The Association appealed.

Rule of Law

Issue

Holding and Reasoning (Cappy, J.)

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