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SHELL OIL CO. v. HRN, INC.

No. 03-0555.

144 S.W.3d 429 (2004)

SHELL OIL COMPANY, Motiva Enterprises LLC, Equilon Enterprises LLC, and Equiva Services LLC, Petitioners, v. HRN, INC., et al., Respondents.

Supreme Court of Texas.

Decided August 27, 2004.

Attorney(s) appearing for the Case

J. Michael Baldwin, J. Gregory Copeland, Macey Reasoner Stokes, Richard A. Brooks, David M. Rodi, Baker Botts, L.L.P., Ann Spiegel, Shell Oil Co., Houston, for petitioners.

George M. Fleming, Sylvia Davidow, Anita F. Kawaja, Fleming & Associates, L.L.P., Michael O'Brien, Mike O'Brien, P.C., Robert L. Steinberg, Law Office of Robert L. Steinberg, Houston, Paul B. Rosen, Law Office of Paul B. Rosen, Bellaire, Ronald J. Mann, Austin, for respondent.

Roger Townsend, Alexander Dubose Jones & Townsend LLP, Houston, for Amicus Curiae Exxon Mobil Corporation.

Richard A. Schwartz, Schwartz Junell Campbell & Oathout, L.L.P., Houston, and Richard C. Godfrey, Kirkland & Ellis LLP, Chicago, IL, for Amicus Curiae BP Products North America Inc.

Chief Justice PHILLIPS delivered the opinion of the Court.

In this case, we must decide whether the price fixed by a refiner for the sale of its gasoline under an open-price-term contract with its dealers was in good faith as required by section 2.305(b) of the Texas Business and Commerce Code. The dealers claim that the refiner's pricing practices are forcing them out of business and therefore are not in good faith. The trial court concluded that the refiner had...

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