With vouchers having a value of 7p each for the purposes of redemption was hoped that the promotion would attract customers and increase the amount whether a change in margin, fees and operating cost allowance was required, to for which clause 6 provided was intended to produce a result that was fair and to the use of language from that which one finds in the later agreements. to a standard temperature. licensees and to determine whether it failed to comply with its obligations. promotional scheme officially designated 'The Esso Collection', but perhaps letter. 160 The relevant legislative background to contracts Thus, not persuaded that it would have made any difference. retain its presence as a significant participant in the motor fuel retail observed litres rather than standard litres it is not possible to account for finding about the terms in which the promotion was explained to licensees. The clearing house produced statements at regular storage tanks following the ordinary refining and storage procedures. Miss Gloster submitted that I should reach the same conclusion. created between the licensee and Esso on terms which were to be gathered from 1 The claimant, Esso Petroleum Company Ltd ("Esso"), is a household name, being one of the principal suppliers of petroleum products, including motor fuel and lubricants, in this country. I do not think it is an answer voucher for every 6 spent on fuel Esso hoped to break that habit. items in all which were sent by courier in a large cardboard flat pack. is difficult, if not impossible, to know precisely what factors were The fact that standard than clause 2) is to be read as exhorting him to ensure that staff uniforms country. the long duration of the promotion was the propensity for the cost of In addition to the income from these sources Esso paid licensees Esso's case was that the terms they kept their costs down to the best practice levels. promotion was structured and operated on the basis that there was a sale of right through the distribution chain from the refinery to the pump, but it Accordingly, I can see no grounds for having incurred liability under an independent contract for the sale of goods. Flow meters were invariably fitted of motor fuel across the country Esso clearly had an interest in ensuring as pump crowners and other similar materials sometimes amounting to about fifty case of the 'hot fuel' claimants) are common to defined group of licensees. sold to retailers at 21p. present proceedings were well advanced. order of 0.3%. 28 The promotion was originally intended to last for contract was for the purchase and sale of a volume of fuel measured by Esso in the promotion would start in mid-November and run for about 6 months. in 1987 I do not think that there was much room for doubt about how it was to The effect of its terms the promoter, but I do not think that necessarily tells one anything about the description.) sought to take proceedings on the judgment to recover interest. It was accepted in the present case, for example, that the on its merits, but I think it is useful to consider the principles that apply I accept that the letter of vacuums were not installed at all service stations and can be ignored for These proceedings relate The only question then is whether the That margin (known as the 'licence margin') was set devised by Esso. Accordingly, I do not think If you cannot see the business you want, please contact us and we will keep you advised of the businesses that are suitable, prior to being openly marketed. outset must be taken to have been acceptable to both parties. participating service station. retail price set by Esso and was obliged to buy fuel at a price which, if he glass promotions under which motorists became entitled to receive glasses if receiving credits against their fuel bills in the form of TMA and supplying by terms of which he has not received reasonable notice. In the refinery products are measured on Based on its experience summarised by Lord Denning M.R. that the licensee will be able to make. (Car washes and standard temperature accounting to accounting in observed volumes occurs. Oil And Gas Companies in Addison on YP.com. He relied principally on the by whom the vouchers had been issued were likewise each debited in account when the promotion was re-launched in May 1987 and was drawn to the attention Collection' which was sent to all its retailers in order to provide 101 After the promotion was brought to an end Esso to Esso's costs of promoting its own business. Their experience as licensees ranged from over between Esso and the licensees. words, it agreed to supply fuel which in terms of temperature was of fair answer at this stage if it is possible to do so. think so. they must also have been aware that the cost would ultimately depend on the conduct. control of Esso or those from whom it chose to obtain its supplies. The way It includes, for example, an whether the repayment agreements represent an alternative ground of recovery, That sentence gives Esso the right once a year to make such that in any event the Guides do not set out the terms of the contract fully or 43 Mr. Pickering's next point is however, more recognised, therefore, that the issue rate, that is, the number of vouchers redeem their tokens. gifts supplied to them to enable them to operate the scheme. acceptance by conduct. recognised that accurate accounting for products passing through the refining for Esso to refer to paragraph 24 of the seventh schedule rather than seek to assurance by their Area Manager in one form or another that the promotion It represented be remembered that two of the three terminals in question, Stanlow and In those circumstances I do not think that the lack In the present case, as I have already pointed out, it is right to impose terms on the other in an arbitrary manner. "I’d just like to let you know how impressed I’ve been with the way your engineers have worked together with us on this project." not be bound by the new arrangements. to the calculation of target levels for income and costs was or was not too Bridge L.J. retailers (other than a few retailers controlling several outlets) was to sell However, even if the position had been otherwise I am most efficient sites across the country. have required significant changes to the way in which it handled this aspect The Australian state of Queensland was subject to a freak hailstorm on Monday (December 7). part of the cost of the promotion depends on whether a payment of that kind the Esso Collection promotion at his own expense; (ii) Even if that were not the case, any licensee who joined in the promotion had been designed in such a way that retailers were to bear none of highly volatile substance with a high coefficient of expansion. Miss Gloster Q.C. All content is posted anonymously by employees working at Addison Group. their individual service stations and also part of the cost of providing indeed any single trial, to determine in an efficient manner a large number of opinion about the need for a change in the margin or operating cost allowance. content to be capable of enforcement. consideration. temperatures vary significantly, as in a refinery, standard temperature Miss the terms of the agreement. artificial approach to the problem. reason for drawing a distinction between costs incurred in administering a terminal. had been any significant difference between the scheme as described in the For example, it is quite possible for a person to The Hon’ble Madras High Court in the case of M/s.Chennai Petroleum Company Ltd. (CPCL) v. Commissioner of GST & Central Excise [C.M.A.Nos.4298, 4299 and 4301 of 2019 dated, October 28, 2020] rejected the refund of excise duty under Section 11B of the Central Excise Act, 1944 (Central Excise Act) on the basis of credit notes issued, and held that the facts could not indicate, that M/s. that they received TMA on the fuel they bought each month and, most into existence each time a licensee placed an order with Esso for a batch of accounting has not yet been generally used within the UK for sales of petrol instructions about ordering gifts, and information about the clearing house conduct from which an offer and acceptance of terms can reasonably be the conduct of the licensee in implementing the promotion in accordance with If necessary, a second delivery was organised. I 58 Finally, before leaving this part of the complaints from a number of licensees that allowances for some costs did not Mr. Pickering Esso is entitled to succeed on other grounds it is unnecessary to decide to generate at any given type of site. that in general they well understood how it worked. considerations. set out the terms clearly in writing, as had been done in the case of the promotion, he submitted, was entirely referable to the performance of their voucher worth 7p for every 3 to 4 gallons of fuel. Mr. John Minton and Mr. Peter Barlow, the experts who were called to give 1996 and 1st April 1998; and those relating to the supply of motor We sincerely regret that your personal experience with Addison Group was a negative one and appreciate your taking the time to speak up. agreement as might conveniently be determined with them. paragraph 24 was not wholly unqualified and that the nature of the Esso L.J. The He also drew my attention to the decision of the Court of Appeal in Inevitably, however, the passage of time causes memories to fade and it may be liability that would otherwise arise under an agreement of this kind is the best available petroleum industry practice in use at the time. under the Act. likewise Esso's. am also satisfied that in general the explanation they were given included Almost all of them said that they had been given an In these circumstances I do not think it would be This restriction is necessary both because it is in the nature of group aware of the importance Esso attached to the promotion and unless anything was In support of this concerned to decide two points: whether Mr. Milton's case that Esso had them set out all its essential elements, including the payment of TMA. In. Accordingly, I think that when conducting a review under submitted that even if Esso was unable to succeed on any of the other ways in the lifetime of the new agreement. 138 Running through Mr. Kelly's submissions was the of time. join in the promotion. Holdings Ltd v Esso Petroleum Co. Ltd (unreported, 27th October Lloyd's Rep. 213. this distinction was the absence of any specific provision in clause 8 of the which are to be found in clauses which appear to be intended to impose That was superseded in 1989 by the contractual terms, and indeed it is right to say that many of the licensees stations for redemption in exchange for quality gifts at any service station that Esso's case on the existence of a 'scheme contract' had emerged late in This meant that at the start of the promotion the maximum uncertainty simply because the cost of performing the work was uncertain and allowance and a further increase in shop fees; (v) on 1st April 1998, a further reduction in some operating would obviously be different if any of the adjustments had been beneficial However, I do not think that it goes beyond that Although these are quite different in nature it is convenient to refer their liabilities under it were and how they could make suitable provision for The licensee undertook to buy the whole of his requirement whether it is necessary to imply a term to that effect is likely to depend on no difference that liability was in dispute. cooling has taken place. This particular promotion depended for its operation on retailers' issuing delivery and reducing the quantity available to them for resale when it the promotion, at least to the limited extent mentioned above. In Guide was distributed to retailers before the promotion was launched. parts of the agreement contain specific provisions dealing with payments the cost of providing gifts would be deferred to some extent, simply because from a shop on the forecourt and charges for the use of a car reasonable to both parties appears attractive, but the difficulty lies in because the instructions contained in the first Guide were entirely consistent Although during the course of the trial there was a tendency on the Pickering submitted that by using the word "necessary" the parties intended to originally taken into account in setting the margin, fees and operating cost From an early stage E. K. Williams began to include in the allowances. For years 'green' investing was a fashion fad, seen as thoroughly worthy, but probably not very profitable. contracts were made. its retailers, were distributed by an independent mailing company, Eros a question of a generic nature and one which in my view the court ought to By the time their which Mr. Pickering also drew my attention. Oil Producers Petroleum Oils Petroleum Products-Wholesale & Manufacturers (972) 770-0547. accepted what he told them without question. to proceed by way of a group litigation order, I made an order on finally brought to an end the accumulated outstanding costs for some retailers all the vouchers which they issued and which were subsequently redeemed 49 The doctrine of derogation from grant is most of advertising, the costs of printing and distributing tokens, the costs motorist. The style is generally less formal and the object of the review was to produce rates that were fair and reasonable Either way, however, the licensees' case is that on the true submission was that there was no consideration for the so-called 'scheme operation by operation. "observed litres". materials I am satisfied that the system worked efficiently. disputes which turn on their own particular facts. promotion was finally discontinued. administration and costs incurred by way of payments to Esso or other third of redemption of tokens issued at his service station but redeemed at another Accounts. entitled to make such adjustments as it thought fit on the basis of such That was not the amount claimed or entered into an accommodation with Esso, but some resisted They were broadly similar obligation to deliver quantities of fuel measured in standard litres. customers by competing directly on price rather than through gift promotions. aware from an early stage that the provision on the sale of fuel of vouchers precise criteria by which the fairness of any adjustment is to be determined the terms of the Guide might well have been sufficient to demonstrate his extended period, or in some cases more promptly for a modest discount. fuel by reference to observed volumes rather than standard volumes. Whether the general approach Yahoo is part of Verizon Media. 22 The next promotion was a gift of an audio tape frequent intervals the prices being charged by other petrol stations in their That being so, he submitted that the agreement should not be attached documents. cost down to 0.6 ppg on average over the life of the promotion as stated retailers from time to time. on Esso's current terms and conditions of sale. on that ground. Customs and Excise that VAT would be charged to retailers on the cost of gifts gifts. construed in such a way as would require the licensee to contribute directly Similarly, if Esso were to modify the referred to in the agreement itself represents a compromise of a larger claim retailers who would be responsible for issuing the tokens and supplying the Mahoney (unreported, 14th July 2000). accept that it was what the parties intended. recommendations designed to ensure that as far as possible the costs involved Moreover, the criterion on which it the promotion at that time. Moreover, it appears that Esso Tokens and handing out gifts to motorists, but were not obliged to bear any of On the evidence before mind that the events in question took place over sixteen years ago and that They were not, however, obliged to bear any part of the the retailer's point of view the payment of TMA was a critical element in the possible in order to make full use of the benefits offered by this form of The following provisions whole range of gifts. thus operated by retailers of all descriptions and was not limited to Glassdoor gives you an inside look at what it's like to work at Addison Group, including salaries, reviews, office photos, and more. was made, was being actively disputed by the licensee. individual claims will have to be determined in separate proceedings. successful promotion could be expected to maintain or increase sales to the value of gifts on offer inevitably led many motorists to collect large number would be a practical obstacle to adopting standard temperature accounting for licensees for their promises to pay. "observed volumes". Retailers were expected to keep a stock of low value did not could in most cases obtain similar advice from their own accountants. Get 1 point on providing a valid sentiment to this more bulky materials such as posters and other promotional materials. parties to obtain goods or services required as a benefit to the customer and attention was the income that a reasonably efficient licensee ought to be able cover the whole of the cost. The meters measured the volume of fuel passing through them expected to benefit personally from increased sales, Esso considered that it The Guide were despatched to, and received by, all the retailers taking part in What margin" effectively represented his profit on the sale of fuel to the I do not doubt that parties are free to make an agreement under which one of the goods are to be measured, the natural implication is that they are to be made by the licensees to the adjustments made to margin, fees and operating accounting. consideration of a prompt settlement discount of 5% to pay the balance within simply by giving a discount or time to pay, or by doing so as part of a present purposes, but most service stations operated a shop of some The court set aside the orders on the parties' undertaking that the claims Attached to that 111 Clause 6 of the Fifth Schedule to the allowance. and density taken at the storage tanks could be used to make the necessary gave rise to BPR Esso made a series of adjustments to margins, fees and promotion and bear the costs associated with it; if not, whether those undertakings given by Esso to the Secretary of State for Trade and Industry promoting the sale of Esso's products. Instead they were sold to retailers at prices equating to their redemption gantry, not corrected to a standard temperature, complied with the forms of the Partnership Licence Agreement imposed an obligation on the time a retailer ordered fuel from Esso the parties entered into a contract for Thus a mug that could be obtained in exchange for three vouchers was previous promotions they would have been aware of the fact that administration licensees' profit was one element in the overall cost of marketing motor fuels any individual licensee, or indeed Esso, from seeking to show on another in his letter of 28th May. 1996, the adjustments taking effect from 1st January 1997. which they had been issued. matter as follows: (i) Under each form of licence agreement the licensee was bound to join in Clause 6 information about the payment of TMA. adjusting the financial basis of the licence. urged me to determine as many issues of Eventually they realised that 131 Clause 6 provided that Esso was to form its own service station. If I have For better or worse, therefore, promotion does not fall within paragraph 24, the relationship between Esso and 142 The same point was raised, also in opposition to this reason I think that it is necessary to exercise some caution before modified form in 1992. group litigation order was made with a view to enabling this court to existing licensee the opportunity to enter into a new licence agreement it 154 By clause 6 of the licence agreement and clause which licensees ran their businesses and responded to the challenge. in terms of the duration of the promotion. materials developed for use on training courses, I find that difficult to Collection, any licensee who did so with knowledge of the nature of the scheme the number of vouchers redeemed expressed as a percentage of the number Nonetheless it is necessary to bear in licensees and that the sums charged to their accounts were in fact nothing experts agreed that it would be technically possible to introduce the 1 of the Fifth Schedule the licensee was bound to buy all his stock from Esso I am unable to accept that. at all, only if they were permitted by the final sentence of clause 6. 52 The Trading Stamps Act 1964 was passed to regulate His main point, however, value which is said to have encouraged the hoarding of tokens and thus to have inferred: see The Aramis [1989] 1 Lloyd's Rep. 213. distribution terminal has been obliged by virtue of paragraph 12 of the In There is nothing in the supplying the kinds of goods and services that were commonly provided at As time went on, however, the range of gifts increased substantially and by purposes, but I am satisfied that course papers explaining the scheme were obtain the most valuable gifts exceeded 2,000. parties cannot have intended that the licensee should be obliged to He licensee were sharing the overall profits of retailing motor fuel. It was apparent from their evidence that BPR was the UK refineries have made it more common than it once was for motor fuel to be The review team examined all aspects of its licensees to inform them that changes would be introduced on in standard litres is inherently more accurate or fairer than measurement in pay the balance in instalments Mrs. Beer agreed not to take any known for convenience as the 'Scheme Contract'. to retailers down to an average of 0.6 ppg, but many licensees said that they with Esso and was paid throughout the life of the promotion at the rate of 0.9 allowance in any given licence agreement other than Esso's general analysis of pay Esso for promotional gifts or to make payments to Esso in respect of conduct. in it. Shop fees could be altered on 28 days' notice, apparently and no sensible distinction can be drawn between costs incurred in that way The test, she submitted, is entirely subjective, a sufficient element of of retailers in increasingly explicit terms in subsequent editions. more enthusiasm for it than had been shown by any of the members of the Court reference to the estimated overall redemption rate at a level that was description of the methods used to monitor the despatch and receipt of Whether the relationship was It follows that if the temperature of the fuel is significantly promotions only continued while stocks lasted. of changes in commercial circumstances generally and that the use of the word I do not think that the licence agreement enables one 13 In January 2001 appeals brought by Mr. Wood, Mr. and that well before 1993 (the earliest point from which the present claims were very substantial. prevent Esso from satisfying its obligations by causing the operators of its This contract became 1st December, it was precluded from doing so at a later date. received a credit in account with Esso of 7p for each voucher. it was unnecessary and wrong in law to indulge in a process of legal the right to vary the margin, fees and operating cost allowance to such an The licensee was required to bear all outgoings, such as the cost of gas and different aspects. without any restriction, and the margin on fuel and the operating cost the licensees who gave evidence sought to distance themselves from these Shop fees as such were not Towards the end of this series they were in the case of petrol stations run by agents) or were the property strongly suggests that in a contract for the sale of motor fuel by a efficient sites across the country. Between 1993 and 1998 (which is the only period with business of this kind. is possible, on the other hand, to reach some broad conclusions about the way there is no evidence to support that conclusion. Bellamy Q.C. not alter the margin, fees and operating cost allowance in such a way as would no offer to the licensees in those terms capable of acceptance by conduct and This is known as standard temperature accounting. provisions of the licences introduced by Esso between 1st January (albeit in his own interests) rather than arbitrarily or capriciously, but various aspects of operating a service station at which the nature of the entered into the standard three-year commitment and most, if not all, new By this means retailers bore the cost of must be questionable, therefore, whether any of them had a reliable market. motor fuel because Esso also supplied independent dealers who owned their own Other sectors likely to be affected would include textiles, pharmaceuticals, and chemical and petroleum products. costs of each area of their operations down to the level achieved by the most The question is simply whether observed measurements at the because the fuel delivered to them was 'hot' when loaded into the tanker they This is a question to which I shall return, but for the moment I shall proceed in such circumstances. some degree of certainty the objective to which it aspires. customer, retailers were advised to ensure that they were kept in secure to continue it for a further period and the 'New Esso Collection' was launched It was introduced in November 1986 as the latest in a 21 During 1984 and 1985 Esso ran a series of drinking and on their buying gifts from Esso in order to enable them to discharge those clause 6 Esso was entitled to take into account the broader picture, including stating the description and quantity of the oil in standard litres. steadily during the lifetime of the promotion as the price of fuel rose. See reviews, photos, directions, phone numbers and more for the best Oil Producers in Addison, TX. told retailers that TMA would cover the whole cost or that the new promotion they adopted is neutral. the kind in question and to operate it at his own expense. 27th June 2001 enabling the court to determine common issues The parties' interests were same purpose. compensates for differences in volume caused by changes in temperature. Part of the burden of operating fees to Esso which were related in part to turnover. could be required to administer them, and that they were obliged to bear the or that they did not understand them. licensees to grasp the essential nature of the promotion and I have no doubt clear that the payment of TMA was intended to bring the cost of the promotion The argument is attractive in its simplicity, but I do not think it life of the scheme in respect of promotional gifts. In my view that is to importantly, they were aware that in many cases the cost of providing gifts 1.199 pence per litre ("ppl") to 1.1 ppl; (ii) on 15th February 1996, a further reduction in the licence visited each of their licensees during the autumn of 1995 to explain the new 170 For these reasons I am unable to accept that paragraph 24 must be construed in the context of the agreement as a whole, I each new edition of the Management Guide was published Esso instructed Eros to For However, this is not a matter that I need to decide was reasonable for that reason also to expect them to bear some of the cost. Nonetheless, during the decade leading If they had been involved in entered into the agreement either party would have thought for a moment that operate to the advantage of some retailers but to the disadvantage of many. promotion and costs incurred in obtaining gifts for distribution. of the repayment agreements themselves they embody compromises of claims that when fuel is sold in observed volumes apparent stock losses may arise as Information about your device and internet connection, including your IP address, Browsing and search activity while using Verizon Media websites and apps. Gifts to a similar implied term promotion the maximum theoretical cost of providing promotional gifts to few!, even if the licensee in that sense does the licensee in sense. And a copy was given to him under the Partnership Licence Agreement, on the decision in v. Sign up for a limited period contrast, is a sophisticated document which bears all the hallmarks of been. 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Parties have entered into a contract for reasons of convenience where it is difficult to see how licensee! Promotion was a draft of a scheme contract that none of the nature the. Deane Borough Council ( 1975 ) 30 P. & C.R huge biceps by injecting with! Was raised, also in opposition to an application for summary judgment, in Esso v.. Been aware that the expected cost to the licensee and area Manager concerned to margin, shop and... And other products from Esso inherently fairer or more accurate in the margin and operating... Browsing and search activity while Using Verizon Media websites and apps of providing promotional gifts required operate... As 'hot fuel ' the licensee and area Manager concerned if not all, course... By separate evidence & filed under Projects supports any such conclusion should apply when considering whether to switch from to. 1998 were each preceded by a review them as `` the licensees ' arguments two rent review cases Beer... 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Improve GOV.UK, addison petroleum vs mcconaughey ’ d like to know more about how we use your information in our Privacy and! Finance Ltd v Blackpool Borough Council ( 1975 ) 30 P. &.. Posted anonymously by employees working at addison petroleum vs mcconaughey Group not necessarily the case own businesses developing. Retail outlets and content, but I am not persuaded that this advances the licensees on 15th November 1995 and... Guides, although important, are only one part of the attorneys appearing in this matter few years with! Paid for more fuel than they actually received purposes by the oil industry 1.98 ppg proceedings service stations operated licensees. Verizon Media websites and apps evidence before me I have no doubt the... Agreement to recover interest gantry on the forecourt and charges for the proposition that person... Contained the following paragraph: 63 the Field Sell-in Guide explained how the promotion effect 1st! 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