Stephenson Oil Company v. CITGO Petroleum Corporation (U.S. District Court for the Northern District of Oklahoma)
Stephenson Oil Company, a former marketer of our client, an oil refiner, filed a class action suit in the Northern District of Oklahoma on behalf of all "disfavored" marketers of the refiner's products. The complaint asserted breach of contract pursuant to § 2-305 of Oklahoma’s version of the Uniform Commercial Code. Stephenson, whose distribution agreement with the refiner contained an open price term, alleged that the rack-price it was charged was set in bad faith and in violation of § 2-305 because certain other marketers in other areas obtained more favorable pricing from the refiner. The complaint sought damages on behalf of all marketers who, like Stephenson, were charged a price based on the publicly posted rack price. Following a hearing, the district court denied plaintiffs’ motion for class certification on the grounds that Stephenson lacked standing.