Opinion ID: 658254
Heading Depth: 2
Heading Rank: 2

Heading: Motor Fuel Franchise Act

Text: 13 Judgment was entered on plaintiffs' claims under the Oregon Motor Fuel Franchise Act (MFFA), Or.Rev.Stat. Secs. 650.210(2), 650.245, 650.250, on the ground that the MFFA was not applicable to contracts which predated its effective date, January 1, 1988. 14 Generally, statutes other than those which are procedural or remedial in nature are applied only prospectively in the absence of direction to the contrary. Joseph v. Lowery, 495 P.2d 273, 274 (Or.1972); see Lincoln v. Kolski, 651 P.2d 197, 199 (Or.Ct.App.), review denied, 656 P.2d 943 (Or.1982). The MFFA is silent regarding the Legislature's intent that it apply retroactively. Plaintiffs' only argument is that the MFFA regulates conduct, not contracts, and therefore should apply to Shell's conduct after January 1, 1988. 15 This argument ignores the fact that Panoco and Shell were conducting themselves pursuant to a contract. Apart from the relationship created and sustained by that contract, Shell would not engage in any conduct with respect to Panoco. Plaintiffs' position also ignores the analysis utilized by Oregon courts in determining the retroactivity of a statute. A statute which impairs existing rights, creates new obligations, or imposes additional duties with respect to past transactions will not be applied retroactively. See Joseph, 495 P.2d at 274-75. Although some provisions of the MFFA duplicate common law duties, which regulate conduct, see Or.Rev.Stat. Secs. 650.215, 650.245, other provisions are specific to the service station franchise relationship and cannot be negated by contract. See Or.Rev.Stat. Secs. 650.220 to .235. For example, the Jobber Contract contains provisions restricting Panoco's right to assign the contract which are contrary to the provisions of Secs. 650.220 to .235. In addition, Sec. 650.250 imposes a new obligation to pay attorney fees to the prevailing party in a suit under the MFFA. 16 The MFFA creates new obligations and imposes additional duties upon franchisors. Thus, the MFFA is a substantive statute which applies prospectively only. See Joseph, 495 P.2d at 274-75. At any rate, to the extent that the MFFA required good faith on Shell's part, it adds no weight to plaintiffs' claim. That was already required by law.