Gasoline retailers sue Puerto Rico Energy for $15M over franchise dispute
The operators allege contract violations and improper environmental fine recovery.
A group of gasoline retailers in Puerto Rico has filed a $15 million federal lawsuit against Puerto Rico Energy LLC (PRE), alleging wrongful franchise terminations, abuse of contractual terms and improper attempts to recover environmental fines from operators.
The plaintiffs — Roberto Seijo-Marrero, Roca Station I LLC, Antonio Juan León, Los Juanes Investment Corp., and CJL Investment LLC — argue that PRE violated federal and local laws regulating fuel franchise relationships.
According to the complaint filed at the U.S. District Court for the District of Puerto Rico, the group seeks compensation for lost income, reputational harm and punitive damages resulting from what they describe as “arbitrary and abusive conduct” by PRE.
The case centers in part on fines issued by the Puerto Rico Department of Natural and Environmental Resources (DNER) for alleged underground storage tank (UST) violations at several stations, including Puma SS-472 in Toa Alta, operated by Seijo and Roca Station I. Although PRE, as the registered UST owner, was cited, it sought reimbursement from Seijo for half of a $35,000 fine — a request he declined.
“PRE is aware that it has always been its responsibility to renew the operation permit for the UST system,” Seijo wrote in a response included in the filing, arguing that he was not contractually obligated to manage environmental permits.
In April, PRE terminated the franchise agreement, suspended fuel deliveries and threatened to debit $31,370.28 in fines and legal costs from the operator’s account. The plaintiffs claim these actions were retaliatory and violated the Petroleum Marketing Practices Act (PMPA), the federal law governing fuel franchise agreements.
The complaint also echoes issues raised in a separate lawsuit filed last week by León, who alleges similar violations by PRE involving termination and misuse of brand assets, as News is my Business reported. That case remains pending.
In this new case, the plaintiffs argue that PRE’s conduct breached protections under the PMPA and violated Puerto Rico’s civil and contractual law.
The case has been assigned to U.S. District Judge Gina R. Méndez-Miró.
