Oil Prophets

Summer 2014

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29 Oil Prophets LEGAL CORNER which essentially can never be shown in a retail gasoline market. The state of Tennessee had an act similar to the AMFMA and litigation some 15 years ago in Tennessee resulted in a federal judge finding just that; that federal anti-trust injury to competition as a whole must be shown under the Tennessee law. While that decision didn't repeal Tennessee's law, it completely gutted it for all practical purposes. Also, the Alabama Supreme Court in McGuire Oil v. Mapco found that the "meeting competition" defense under the Act allows a competitor to MEET a competitor's price in the same geographic market, not BEAT it; thus completely disagreeing with Mapco's argument that its status as an independent gave it a right to beat a branded marketer's price by a penny or two a gallon and still take advantage of the meeting competition defense. P&CMA has been committed from Day 1 to maintaining the viability of the AMFMA. It has done so by the expense of funds in fighting legislative challenges and in supporting marketers in their enforcement efforts in court. Please don't take that support for granted. Many states have lost their below cost laws over the years either in their legislatures or in court decisions. There is no question that the AMFMA has been the model act in the country. We have been the most successful by far in its enforcement over the years. There are so many people that should be thanked for their efforts 30 years ago in bringing this law about. That certainly includes Jim McGuire, Roy White, Sr. and Glen Boom, the marketers involved in the "McGuire Oil v. Mapco" litigation which gave the law real teeth. It also must include those Association members and "friends" who were on the front line with the industry in the Legislature in getting this passed 30 years ago. I'm told the major oil companies were in Montgomery in force to fight our efforts. As soon as I begin to mention people's names, I will omit more than I recognize. However, with that disclaimer, those people on the front line 30 years ago included Jim McGuire, Barnett Lawley, Tommy Howard, Harold West, Jack Pitts, Sr., Wayne Russell, Larry Jones, Don Hollar, Sen. John Teague and others in the Legislature who took a stand with our industry. One of these folks recounted to me a very famous – or infamous - ad the major oil companies put together that showed a picture of a consumer with his hands up like he was being robbed but rather than a gun, a "local oil jobber" was holding a gas nozzle to his back like a stick-up, and the caption read something to the effect "This is what your local oil jobber has in store for you." As the story is told, many of us don't realize or have forgotten the blood, sweat and tears that it took by so many to get this legislation passed and other efforts like it that have bettered our businesses and the industry over the years. While I was in Montgomery in my second year of practicing law in 1984, I did not begin representing the gasoline industry until late 1987/early 1988 and therefore was not a part of this. We all owe these people a great "thanks" for these efforts. We continue to fight these fights today and would hope all members would be quick to participate in enforcement efforts where appropriate.

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