Sunoco service station operators in Ontario are seeking as much as $200 million in damages from Suncor Energy over the oil giant’s decision to close the outlets.
A class action lawsuit was filed today in the Ontario Superior Court, a statement from the operators said.
The move follows an internal announcement by Suncor last week that it intends to terminate the retail franchise agreements of all 300 of its Sunoco operators in Ontario.
About 100 sites will be sold in April 2010, while the remaining will be re-branded under the Petro-Canada name with different operators, the statement said.
“Suncor received a statement of claim late yesterday (Monday) and is currently reviewing the matter,” spokeswoman Sneh Seetal said. “As this is before the courts we cannot provide any further comment.”
Suncor and Petro-Canada agreed to merge last year to create a Canadian energy giant. As part of the integration, the Sunoco chain will be rebranded to give consistency across the country.
The retailers say that Suncor failed to comply with Ontario franchise legislation that would entitle them to rescind their agreements and receive compensation.
“The operation of Ontario's franchise legislation will result in Sunoco's dealers, who built up the Sunoco brand through years of hard work and loyal service, receiving a return on their personal efforts and investments," David Sterns, lawyer for the service station operators, said.
Suncor stock slipped 0.8% to $36.71 in afternoon trading.
