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Former ARCO dealer asks judge for oral hearing in gas case

Post by John Gillie / The News Tribune on Aug. 24, 2011 at 3:41 pm with No Comments »
August 24, 2011 3:41 pm

A former Tacoma ARCO dealer denied a gas supply by the big oil company because he’s behind in payments, has asked a federal judge to allow his lawyers to argue his case against ARCO in a full oral hearing.

Hatem Shalabi, the owner of 18 ARCO stations in Western Washington, is opposing ARCO’s move to shut down his sales of unbranded gas at the station. ARCO claims the dealer is violating ARCO’s trademarks and deed restrictions on the stations that require him to sell only ARCO gas.

Shalabi contends ARCO has no standing to ask that the stations be ordered closed and that ARCO has deliberately torpedoed his business. ARCO denies it wants to ruin his business. The oil company argues that Shalabi hasn’t paid for $1.3 million worth of gas and that, although he has covered up some ARCO signs at the stations, they remain readily identifiable as ARCO outlets.

No decision has yet been issued on the hearing request.

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