Opinion ID: 777182
Heading Depth: 2
Heading Rank: 3

Heading: In This Case, the Materiality of the Violation is a Question of Fact

Text: 29 Whether a violation is a failure that is serious enough to warrant termination can be a question of fact for trial. In Khorenian v. Union Oil Co., 761 F.2d 533, 536(9th Cir.1985), we construed the materiality requirement in (b)(2)(A) and noted: 30 In making determinations in franchise termination cases under the PMPA, we look not only at the nature of the provision allegedly violated, but also at the nature and effect of the alleged breach. Whether a breach ... is so fundamental that it undermines the franchise relationship may well depend on the facts of the particular case.... We believe that all of the relevant factors should be explored fully at trial before any final determination is made as to whether there was a contractual violation that undermined the franchise relationship. 31 Not every case necessarily requires a trial to settle the question of materiality. We can imagine a case in which the materiality of a particular violation is obvious. On review of a summary judgment, the question is simply whether, on the record, there is a genuine issue of material fact as to the violation's significance. 32 Given the record in this case, we cannot say as a matter of law that El-Khoury's breach was material to the franchise relationship. Drawing all inferences in El-Khoury's favor, as we must, there is sufficient evidence to survive summary judgment on this issue.