Four Corners Service Station, Inc. v. Mobil Oil Corp.

                  UNITED STATES COURT OF APPEALS
                      FOR THE FIRST CIRCUIT

                                           
No. 94-1616
               FOUR CORNERS SERVICE STATION, INC.,

                      Plaintiff, Appellant,

                                v.

                      MOBIL OIL CORPORATION,

                       Defendant, Appellee.

                                           

No. 94-1718
               FOUR CORNERS SERVICE STATION, INC.,

                       Plaintiff, Appellee,

                                v.
                      MOBIL OIL CORPORATION,

                      Defendant, Appellant.

                                           

          APPEALS FROM THE UNITED STATES DISTRICT COURT

                FOR THE DISTRICT OF MASSACHUSETTS

       [Hon. Frank H. Freedman, Senior U.S. District Judge]
                                                                    

                                           

                              Before

                       Cyr, Circuit Judge,
                                                   

                  Bownes, Senior Circuit Judge,
                                                        

                    and Stahl, Circuit Judge.
                                                      

                                           


   David R. Schaefer, with whom Brenner, Saltzman, Wallman & Goldman
                                                                              
was on brief for Four Corners Service Station, Inc.
   Paul D. Sanson,  with whom Sheila Huddleston,  Shipman & Goodwin,
                                                                             
and Edward H. Beck, III were on brief for Mobil Oil Corporation.
                               

                                         

                          March 22, 1995
                                         


          CYR, Circuit Judge.  Four Corners Service Station, Inc.
                    CYR, Circuit Judge.
                                      

("Four  Corners") appeals  a  district court  judgment under  the

Petroleum Marketing Practices Act,  15 U.S.C.    2801-2806 (1994)

("PMPA"),  disallowing its  demands for compensatory  damages and

attorney fees against Mobil  Oil Corporation ("Mobil") for unlaw-

ful  nonrenewal  of Four  Corners'  franchise  agreement.   Mobil

cross-appeals the PMPA liability judgment entered against it.  We

affirm the district court judgment in all respects. 

                                I
                                          I

                            BACKGROUND
                                      BACKGROUND

          Four Corners is a  retail gasoline distributor in Three

Rivers, Massachusetts.   Since 1926, Four Corners  had been party

to a series of renewable franchise agreements ("Agreements") with

Mobil, its exclusive gasoline supplier.  The Agreements obligated

Four Corners to purchase a specified minimum gallonage per annum,

and  also  set maximum  gallonage  limits  or so-called  purchase
                                

"caps."  These caps  permitted Mobil to plan against  unpredicted

fluctuations  in  franchisee  demands  for gasoline.    The  caps

increased by ten percent each year to allow for normal franchisee

sales growth.

          In March  1987, Four  Corners discovered that  the soil

beneath its Three Rivers service station was severely contaminat-

ed with gasoline.   The Massachusetts Department of Environmental

Quality Engineering  ("DEQE") issued a notice  of responsibility,

                                3


citing six  underground gasoline storage tanks  installed by Four

Corners between 1942 and 1978 as likely sources of the contamina-

tion.  Four Corners promptly notified Mobil that the DEQE-ordered

remediation, involving the removal and replacement of the storage

tanks  and 250 cubic yards of contaminated soil, would require an

immediate and  indefinite closure of the  service station, during

which  Four Corners  would not be  able to meet  its minimum gal-

lonage  purchase obligations under the Agreements.  Over the next

several months,  Four Corners  repeatedly asked Mobil  for advice

and information on possible  methods for implementing and funding

the required remediation, but to no avail.

          Although  it  promptly   completed  the  required  tank

removal,  Four  Corners encountered  problems  arranging a  cost-

effective  method  for  disposing  of the  contaminated  soil,  a

prerequisite to  installing replacement  tanks and  reopening its

service station.  The estimated costs of transporting the contam-

inated  soil  to an  out-of-state  disposal  site ranged  between

$70,000 and  $100,000, but transporters would  not provide "firm"

cost estimates  without first reviewing DEQE site  reports.  DEQE

in turn would  not release  the site reports  until Four  Corners

signed  a final contract with a  transporter.  Consequently, Four

Corners  eventually decided  to "aerate,"  a natural  remediation

method  which achieves  decontamination on  site by  exposing the

soil to the open air for extended periods of time.  

          In December  1987, Mobil  notified Four Corners  of its

decision not  to renew their  sixty-year-old franchise agreement,

                                4


effective in March 1988,  due to Four Corners' breach  of certain

terms of their  Agreements, specifically (1) its  failure to meet

the minimum gallonage provision; (2) its dilatory cleanup  of the

environmental contamination;  and (3) its closure  of the service

station for more than seven consecutive days.  

          In March  1989,  Four  Corners  initiated  the  present

action in federal district court, alleging  that Mobil had wrong-

fully refused to  renew the franchise agreement, in  violation of

PMPA, 15 U.S.C.    2801-2806, for "reasons beyond [Four Corners']

control."   The complaint sought reinstatement  of the franchise,

actual and exemplary  damages, attorney  fees and costs.   Id.   
                                                                        

2805.  

          In the  meantime, Four  Corners had opened  an expanded

and modernized service station at  the same site in late 1988    

under new ownership and  management    which purchased its  gaso-

line  supplies from  British Petroleum  until December  1990, and

later  from Exxon.  In July  1991, Four Corners filed a voluntary

chapter 11 petition.  

          Following a jury-waived trial, the district court found

that Mobil had violated  PMPA by refusing to renew  the franchise

based on a breach "beyond the reasonable control of the franchis-

ee."    Four Corners Serv. Station,  Inc. v. Mobil Oil Corp., No.
                                                                      

89-30044-FHF (D. Mass. Dec.  2, 1993) ("Four Corners I").   Mobil
                                                                

did not prove that Four Corners actually caused the soil contami-

nation, that Four Corners had any choice but to close the station

under the mandatory DEQE remediation order, nor that Four Corners

                                5


unreasonably  failed to  take the  most expeditious  approach for

effecting soil decontamination.   Id.,  slip op. at  14-15.   The
                                               

PMPA violation notwithstanding,  the district  court declined  to

grant reinstatement of the  franchise and addressed Four Corners'

request for a remedy at  law    recovery of lost profits  for the

projected ten-year residual term  of the Mobil franchise. Id.  at
                                                                       

15.1   The parties were directed to submit supplemental briefs on

the right to recover lost profits.  Id. at 16.
                                                 

          For the  five-year period immediately  preceding trial,

Four Corners calculated the profits lost due to Mobil's  wrongful

nonrenewal at $356,099; it estimated  its future lost profits for

the  ensuing five-year  period at  $171,290.   These calculations

were  based  on  the  contention  that  Mobil's  greater  product

strength in Western Massachusetts would have enabled Four Corners

to sell 30% more  Mobil gasoline than it did  BP gasoline between

1988 and  1990, and  20% more  Mobil gasoline  than it  did Exxon

gasoline between 1991 and 1993.

          The  district court rejected  Four Corners' "lost prof-

its"  calculations.  It found  no evidence that  Mobil would have

permitted Four Corners to exceed  the annual purchase caps estab-

lished  in the Agreements.   Four Corners Serv.  Station, Inc. v.
                                                                        

Mobil Oil Corp., No. 89-30044-FHF, slip op. at 5-8 (D. Mass. Mar.
                         

22, 1994) ("Four Corners II").   Moreover, Four Corners  actually
                                     

succeeded in selling more BP and Exxon gasoline following Mobil's
                                   
                    
                              

     1As the  district court found  that Mobil  had not  violated
PMPA willfully, it denied  exemplary damages as well.   See infra
                                                                           
note 3.

                                6


nonrenewal  than it  could  have  sold  under the  maximum  Mobil

gallonage  limits  fixed by  the annual  caps.   Thus,  the court

reasoned, Four Corners experienced an increase in profits,  not a

reduction.   Id. at 8.2   Because Four  Corners proved no  actual
                          

damages,  the court exercised  its discretion, under  15 U.S.C.  

2805(d)(1)(C), and denied an attorney fee award.  On appeal, Four

Corners challenges  only the rulings denying compensatory damages

and attorney fees.3   For its part, the Mobil  cross-appeal chal-

lenges the district court finding that Mobil violated PMPA. 

                                II
                                          II

                            DISCUSSION
                                      DISCUSSION

A.   Statutory Overview
          A.   Statutory Overview
                                 

                    
                              

     2The court based its findings on the following evidence:

               Actual Sales   Potential      Franchise
                                     
                 (gallons)    Mobil Sales    Caps
                                                           

     1989      1,100,892      1,431,159        824,602
     1990      1,274,643      1,657,035        907,062
     1991      1,083,253      1,299,904        997,767
     1992        985,406      1,182,487      1,097,545
     1993 (1st   185,335        222,402        301,825
      quarter)

     3Although the Four Corners' notice of  appeal alludes to the
district  court rulings  denying equitable  relief  and exemplary
damages, its appellate briefs do not challenge these rulings. See
                                                                           
Licari  v. Ferruzzi,  22 F.3d  344, 349  (1st Cir.  1994) (claims
                             
unaccompanied  by adequate  argumentation  are deemed  waived  on
appeal).  As concerns the former issue, therefore, we must assume
that Four  Corners concedes that an award of lost profits for the
projected ten-year residual franchise term, if proven, would have
                                                               
afforded it  a full  and "adequate"  remedy at  law.   Cf., e.g.,
                                                                          
McDonald  v.  Piedmont Aviation,  793 F.  Supp. 75,  78 (S.D.N.Y.
                                         
1992)  (plaintiff  waives  entitlement  to  equitable  relief  by
failing to appeal  earlier court ruling that damages  award would
confer an "adequate" remedy in lieu of equitable relief).

                                7


          Congress enacted PMPA to  avert the detrimental effects

on  the nationwide  gasoline  distribution system  caused by  the

unequal bargaining power enjoyed  by large oil conglomerates over

their service-station  franchisees.   See  generally  Veracka  v.
                                                                       

Shell  Oil Co., 655  F.2d 445, 448  (1st Cir. 1981);  S. Rep. No.
                        

731, 95th Cong., 2d  Sess. 17-19, reprinted in 1978  U.S.C.C.A.N.
                                                        

873,  875-77.   PMPA attempts to  level the playing  field by re-

stricting  the  grounds upon  which  a  franchisor  can assert  a

unilateral  termination or  nonrenewal of  a franchise.   Grounds

upon which  unilateral termination  by a franchisor  is permitted

under PMPA include (1)  "[a] failure by the franchisee  to comply

with  any provision  of  the franchise,  which provision  is both

reasonable   and   of  material   significance,"   15  U.S.C.    

2802(b)(2)(A); (2) "[a] failure by  the franchisee to exert  good

faith  efforts to carry out the provisions of the franchise," id.
                                                                           

   2802(b)(2)(B); or (3) "[t]he  occurrence of an  event which is
                              

relevant to the franchise  relationship and as a result  of which

termination  of  the franchise  or  nonrenewal  of the  franchise

relationship is reasonable," id.   2802(b)(2)(C).  The failure of
                                          

a  franchisee  to  operate   the  marketing  premises  for  seven

consecutive  days  may constitute  a  relevant  event under  PMPA

  2802(b)(2)(C).    Id.    2802(c)(9)(A).    However,  unilateral
                                 

termination or  nonrenewal  is not  permitted under  PMPA if  the

failure to comply with  the terms of the franchise  agreement was

"beyond the reasonable  control of the  franchisee." Id.    2801-
                                                                  

(13).          PMPA also  allocates and shifts  burdens of  proof

                                8


between  the parties to the franchise agreement.  In a PMPA-based

action  for unlawful  franchise  termination  or nonrenewal,  the

franchisee bears the initial burden of proving that a termination

or nonrenewal occurred, at which point the burden of proof shifts

to the franchisor to demonstrate that the  termination or refusal

to renew was  based on  a legitimate ground  enumerated in  PMPA.

Id.   2805(c).
             

B.   Liability: "Reasonable Control"
          B.   Liability: "Reasonable Control"
                                             

     1. Cause of Environmental Contamination
               1. Cause of Environmental Contamination
                                                      

          The Mobil cross-appeal  asserts two related  challenges

to  the district court ruling  on liability.   First, it contends

that there is  no record support for the  finding that the actual

cause  of  the soil  contamination  at the  Four  Corners service
               

station remained  "unclear."  Four Corners  I,  slip op.  at  14.
                                                       

Mobil notes  that Four Corners  was the only  gas station in  the

vicinity of the contamination; Four Corners had sole responsibil-
                                                              

ity for maintaining the storage tanks and was the  sole target of

the DEQE  notice of  responsibility; Four Corners  concededly did

not comply with environmental statutes and regulations  requiring

periodic testing of its storage tanks for leakage, see Mass. Gen.
                                                                

L. Ann. ch. 148,   10 (1994); Mass. Regs. Code tit. 527,    5.05,

9.01 to 9.24 (1983); and noticeable "wet spots" were found on the

outer  shell of  the  storage tanks  upon  excavation.   If  Four

Corners caused the  contamination, Mobil  argues, nonrenewal  was

not beyond Four Corners' "reasonable control."  

                                9


          We review  the district court factual  finding on "rea-

sonable control"  and its  subsidiary findings on  causation only

for "clear error."  See, e.g., Roberts v. Amoco Oil Co., 740 F.2d
                                                                 

602, 608 (8th  Cir. 1984) (legislative  history of PMPA  suggests

that Congress intended to  favor franchisees by treating "reason-

ableness" determination  as an issue  of fact); Serianni  v. Gulf
                                                                           

Oil Corp.,  662 F. Supp. 1020,  1024 (E.D. Pa.  1986); cf. Dedham
                                                                           

Water Co. v. Cumberland Farms Dairy,  972 F.2d 453, 457 (1st Cir.
                                             

1992)  (causation in  environmental context  is question  of fact

subject to "clear error" review).  Reversal is warranted only if,

after  considering the entire record, we are left with the "defi-

nite  and firm  conviction  that a  mistake has  been committed."

Interstate  Commerce Comm'n  v.  Holmes Transp.,  Inc., 983  F.2d
                                                                

1122,  1129 (1st Cir. 1993) (quoting Anderson v. City of Bessemer
                                                                           

City, 470 U.S. 564, 573 (1985)); see also Fed. R. Civ. P. 52(a).
                                                   

          Significantly,  the  burden  of  proof  on  "reasonable

control"  lay with  Mobil,  not Four  Corners.   See 15  U.S.C.  
                                                              

2805(c).  On  appeal, Mobil  must point to  evidence that  fairly

compelled a finding that  Four Corners    and Four  Corners alone
                                                                           

    caused the  contamination.   See Reich  v. Cambridgeport  Air
                                                                           

Sys., 26 F.3d 1187, 1188 (1st  Cir. 1994) ("'Where there are  two
              

permissible  views  of  the  evidence,  the  factfinder's  choice

between them cannot be clearly erroneous.'") (citations omitted).

Since it has not done so, we find no clear error.

          First, DEQE found no holes  in the tanks.  Nor did  the

"wet spots" constitute conclusive evidence of tank leakage, since

                                10


they could  have been  caused by contamination  emanating outside

the  tanks.   Four Corners  cited a  United States  Environmental

Protection Agency document which suggests that gasoline spills by

oil  transporters during  gasoline  delivery are  among the  most
                           

common  causes of soil contamination at service stations.  See 53
                                                                        

Fed. Reg. 37087,  37090, 37133  (1988).  Finally,  the notice  of

responsibility  issued  by DEQE  rested  on  Four Corners'  legal

status  as  the current  owner/operator  of  the service  station

facility  for strict liability purposes only.  It did not purport
                                        

to represent a  determination that Four  Corners caused the  con-

tamination.

          Likewise, the record evidence does not compel a finding

that Four Corners might  have averted the bulk  of the soil  con-

tamination  by more diligent testing of its tanks.  Mobil neither

produced  evidence as  to  when the  contamination occurred,  nor
                                         

asserted that the environmental  "detection" statutes and regula-

tions  of  the 1980s  were retroactive.    Further, there  was no

evidence which  would exclude  leakage from other  pumping system

components (pumps,  hoses, pipes);  that is, leakage  which could

not  have been  detected by  testing the  tanks.   Finally, since

there was  no  evidence  that  Mobil investigated  any  of  these

matters before it  decided not  to renew the  Four Corners  fran-
                        

chise, the district court might well have treated this contention

as  a post hoc rationalization.  See Desfosses v. Wallace Energy,
                                                                           

Inc., 836 F.2d 22, 29 (1st Cir. 1987) (noting that PMPA notifica-
              

tion requirements ensure that franchisor cannot invent after-the-

                                11


fact  justifications for  termination or  nonrenewal).   As Mobil

failed to meet its burden of proof on the factual issues underly-

ing  the  district  court  ruling on  "reasonable  control,"  the

finding stands.

                                12


     2.  "Financial Inability" to Remediate
               2.  "Financial Inability" to Remediate
                                                     

          Mobil likewise  challenges  the district  court  ruling

that  Four Corners lacked the financial  ability to remediate the

soil  contamination.  It contends that the ruling was infected by

legal  error, in that  the court  wrongly regarded  Four Corners'

financial inability to pay for out-of-state disposal, the costli-

er but more expeditious method of  remediation, as a circumstance

beyond the franchisee's  reasonable control.  If this  were true,

Mobil argues, any franchisee  who came upon hard times  and could

not afford  to pay  Mobil for its  oil purchases would  be exempt

from unilateral  termination.   See,  e.g., California  Petroleum
                                                                           

Distribs.  v. Chevron  U.S.A.,  589 F.  Supp. 282,  288 (E.D.N.Y.
                                       

1984); Cantrell v. Exxon Co., U.S.A., 574 F. Supp. 313, 317 (M.D.
                                              

Tenn. 1983).  Even  if we were to agree with the reasoning of the

two decisions  cited by Mobil, however, the district court simply

did  not find  that Four  Corners' choice  of a  less expeditious

remediation  program  was beyond  its reasonable  control because
                                                                           

Four Corners could not afford more expeditious measures.  Indeed,

Four Corners itself adduced evidence that its then owner, Richard

Tenczar,  could have obtained financing for out-of-state disposal

if necessary.  

          Mobil's contention is a  thinly veiled attempt to frame

the  present "clear error"  challenge, see  Roberts, 740  F.2d at
                                                             

608, as an issue of law subject to de novo review.  See  Cumpiano
                                                                           

v. Banco Santander Puerto Rico, 902 F.2d 148, 154 (1st Cir. 1990)
                                        

("The 'clearly  erroneous' rule  cannot be evaded  by the  simple

                                13


expedient of [the] creative relabelling . . . by dressing factual

disputes in 'legal' costumery.").  The central inquiry    that of

"reasonableness"    must be  undertaken in light of all  the cir-
                                                                 

cumstances.   In  that  vein, we  cannot  ignore  the  subsidiary

finding by the district court that Mobil  repeatedly ignored Four

Corners' pleas for guidance  and assistance on how best  to reme-

diate service-station  soil contamination.   See Four  Corners I,
                                                                          

slip op. at 14 ("Mobil offered  no assistance that was refused by

Four Corners which would evidence a lack of desire on the part of

Four  Corners to  remedy the problem  as expeditiously  as possi-

ble.");  cf., e.g., Malone v. Crown Cent. Petroleum Corp., 474 F.
                                                                   

Supp.  306, 311  (D. Md.  1979) (upholding  franchise termination

where franchisee deliberately  failed to heed  franchisor's warn-

ings or  accept  its "good  faith" advice  about more  profitable

marketing strategies).  Four Corners was left entirely to its own

devices,  in the awkward position of having to determine the most

cost-effective  remediation  method,  which   involved  balancing

projected  future service-station revenue  losses occasioned by a

more  prolonged   closure,  against  the   unconfirmable      but

unquestionably higher     immediate  costs of a  more expeditious

remediation.  In these  circumstances, the district court reason-

ably could find that  Four Corners acted in good faith,  and that

Mobil's reticence to  assist was  prompted by its  desire to  rid

itself of the franchisee requesting its assistance.  As there was

no clear error, the liability judgment  against Mobil must stand.

                                14


                                15


C.   Damages
          C.   Damages
                      

     1.  The Maximum Gallonage Provision
               1.  The Maximum Gallonage Provision
                                                  

          Four Corners impugns  the district court's reliance  on

the  annual gallonage  caps as  the basis  for finding  that Four
                                     

Corners lost no profits as a result of the nonrenewal.  It argues

that  the district  court was  required to predict  whether Mobil

would  have waived  the  caps in  each  successive year  had  the

franchise  not been wrongfully terminated in 1988.  It points out

that  a  Mobil manager  testified  that  Mobil had  an  "internal

mechanism" for authorizing  such waivers  where franchisees  have

renovated or expanded service stations in order to increase their

gasoline sales by more  than ten percent over the  previous year.

Consequently, Four Corners contends, were Mobil to have refused a

waiver  in these circumstances  its action would  have been arbi-

trary and discriminatory, in violation of PMPA.

          Normally, the plaintiff must bear the burden of proving

actual  damages.  See, e.g.,  Wells Real Estate,  Inc. v. Greater
                                                                           

Lowell  Bd. of  Realtors, 850  F.2d 803,  816 (1st  Cir.) (citing
                                  

cases), cert. denied, 488 U.S. 955  (1988).  Four Corners has not
                              

suggested that a different  burden allocation obtains under PMPA.

Therefore,  we assume that the  burden of proof  rested with Four

Corners.  A  challenge to  the district court's  findings on  the

actual amount  of  damages sustained  by  a claimant  presents  a

question  of fact, which we review only  for "clear error."  See,
                                                                          

e.g.,  American Title Ins.  Co. v. East West  Fin. Corp., 16 F.3d
                                                                  

449, 461 (1st Cir. 1994).  

                                16


          The record evidence did not compel a finding that Mobil

would  have waived  the 1988-91  caps on  Four Corners'  gasoline

purchases.    Judy Schultz,  district  sales  manager for  Mobil,

testified that  Mobil imposed  these contractual caps  to protect

itself from  the considerable  expense which would  attend unpre-

dictable or unanticipated increases  in franchisee demand for on-

hand gasoline supplies.   She  further noted  that the  gallonage

caps automatically increased by ten percent per year.  A franchi-

see which wanted  a waiver of the cap would  need to obtain prior

approval  from  the general  manager  for the  Mobil  region, the

wholesale manager, and the district  sales manager.  When pressed

by Four Corners, however, Schultz testified that she did not know

of any Mobil franchisee which had actually obtained a waiver.

          Even assuming, arguendo, that  Four Corners' burden  of
                                           

proof  could have  been sustained  by showing  that Mobil  had an

established "internal  mechanism" for  affording relief  from the

gallonage caps beyond the automatic  ten-percent annual increase,

and that Four Corners itself  met the criteria for such  a waiver

in  the years 1988-91, the  Schultz testimony fell  well short of

such a  showing.  It identified no  criteria, nor did it indicate

that any such waiver  procedure had ever been invoked,  either by
                                                  

Mobil  or  a franchisee.    Moreover, Four  Corners  proffered no
                                                                           

independent  evidence  that any  Mobil  franchisee,  let alone  a
                                         

franchisee in  a position comparable  to Four Corners',  had ever

requested or been  granted any such  extraordinary waiver.   Cf.,
                                                                          

e.g.,  Ewing v.  Amoco Oil  Co., 823 F.2d  1432, 1438  (10th Cir.
                                         

                                17


1987)  (noting existence  of factual  dispute whether  franchisor

offered   plaintiff  less   favorable   terms   than  its   other

franchisees); Valentine v. Mobil  Oil Corp., 614 F. Supp.  33, 39
                                                     

(D.  Ariz. 1984)  (finding  no evidence  that franchisor  treated

plaintiff  differently  than  franchisor's   other  franchisees),

aff'd, 789 F.2d  1388 (9th Cir. 1986).  Thus,  there is no record
               

evidence  even suggesting  that the  district court  finding that

Four Corners would not  have been granted a gallonage  cap waiver

constituted clear error.  See Four Corners II, slip op. at 8.
                                                       

     2.  Lost Profits for 1992 and 1993
               2.  Lost Profits for 1992 and 1993
                                                 

          Next,  Four Corners  contends that  it lost  profits in

1992,  and during the first  quarter of 1993,  when the gallonage

caps under its wrongfully  terminated Mobil franchise first began

to  exceed its actual Exxon gasoline sales or its potential Mobil
                    

gasoline sales.   See supra note  2.  For example,  in 1992, Four
                                     

Corners could have sold  112,139 more gallons (viz.,  the differ-
                                                            

ence  between its 1,097,545 gallon Mobil cap and its actual Exxon

sales of  985,406 gallons)  even assuming  that Mobil  refused to
                                                   

waive its  cap.  Thus,  Four Corners  claims, it was  entitled to

recover these  discrete losses, which were  proximately caused by

Mobil's wrongful nonrenewal under PMPA.

          This  claim can succeed only  if the measure of compen-
                                                                           

satory damages under PMPA  may exceed the level required  to make
                                               

the plaintiff-franchisee whole for whatever injury or loss flowed
                                        

from the franchisor's wrongful  conduct.  But cf., e.g.,  Linn v.
                                                                        

Andover  Newton Theological Sch., 874  F.2d 1, 8  (1st Cir. 1989)
                                          

                                18


(noting  that plaintiff failed to suggest that either the ADEA or

contract law entitled him  to be made "more  than whole").   Four

Corners points to no  authority for this counterintuitive assump-

tion, nor  is there  anything in  PMPA's language or  legislative

history  to suggest that  Congress intended  to deviate  from the

normal presumption, uniformly applied to numerous other causes of

action arising under federal remedial statutes, that compensatory
                                                                           

damages may not exceed  the amount necessary to make  the injured

party  whole.   See,  e.g.,  Midwest  Petroleum Co.  v.  American
                                                                           

Petrofina  Mktg., Inc., 644 F.  Supp. 1067, 1071  (E.D. Mo. 1986)
                                

(noting  PMPA franchisee  is  not entitled  to "double  recovery"

where it  has otherwise mitigated harmful  effects of defendant's

violation); see also Russo  v. Texaco Inc., 630 F. Supp. 682, 687
                                                    

(E.D.N.Y.)  (PMPA is  a  diminution  of  franchisors'  common-law

contract rights, and its remedial provisions should not be unduly

extended beyond  statute's express language and  purpose), aff'd,
                                                                          

808 F.2d 221 (2d Cir. 1986).  

          Since Four  Corners  requested the  district  court  to

presume  that  its  sixty-year-old  Mobil  franchise  would  have

remained  in force  another ten  years but  for Mobil's  wrongful

nonrenewal, the court was required to determine the aggregate net
                                                                           

profits  Four  Corners  would  lose during  the  entire  ten-year
                                                                 

period.  The record evidence  reveals that Four Corners  actually

realized an overall increase approximating $215,000, in total net
                                      

profits  and interest, as a consequence of having been freed from

the  Mobil  gallonage  caps  during the  five  years  immediately

                                19


preceding trial.4   Thus, the profits  allegedly lost in  1992-93

clearly were  not recoverable as  discrete losses over  and above

the incidental profits gained during the entire five-year period.

     3.   Future Profits
               3.   Future Profits
                                  

          Four  Corners insists  that  the district  court simply

ignored  its claim  to  $171,290 in  future  lost profits.    See
                                                                           

Thompson v. Kerr-McGee Ref. Corp., 660 F.2d 1380, 1388 (10th Cir.
                                           

1981) (future lost profits recoverable under PMPA), cert. denied,
                                                                          

455 U.S. 1019 (1982);  cf. Wallace Motor Sales, Inc.  v. American
                                                                           

Motor Sales Corp., 780  F.2d 1049, 1062 (1st Cir.  1985) (automo-
                           

bile dealership entitled  to claim damages for  lost profits over

projected  life span of franchise).   Although Four Corners would

incur these  damages in  each future  year because the  gallonage

caps  would continue to  outstrip Four  Corners' actual  sales of

Exxon gasoline, or its  projected sales of Mobil gasoline,  until

1998, this claim too is flawed. 

                    
                              

     4Assuming  constant retail prices  and operating  costs, the
following would approximate Four Corners' profits (losses) during
each of the five years immediately preceding trial:

          Change in      Estima-   Interest       Total
          Net Profits    ted Int-  on             Gain or
          as Mobil Sta-  erest     Profit         Loss
          tion with Rate
          Caps in Force 
                                                           
1988:    ($  1,004)      52%      ($    528)     ($  1,532)
1989:     $ 69,571       45%       $ 31,306       $100,877
1990:     $100,426       34%       $ 34,144       $134,570
1991:     $ 21,655       22%       $  4,764       $ 26,419
1992:    ($ 19,568)      10%      ($  1,956)     ($ 21,524)
1993:    ($ 22,872)       3%      ($    686)     ($ 23,558)
                                                            
Total     $148,208                 $ 67,044       $215,252

                                20


          In  truth, the  district court  was fully  cognizant of

Four Corners' claim for future profits, as it explicitly acknowl-

edged  in its  opinion.   See  Four Corners  II, slip  op. at  3.
                                                         

Moreover,  the record  evidence discloses  that there  was little

likelihood  that Four  Corners  could have  remained in  business

until 1998.   Furthermore, there were serious deficiencies in its

forecasts of future lost profits.  See Levy v. FDIC, 7 F.3d 1054,
                                                             

1056 (1st  Cir. 1993) (appellate court  is free to affirm  on any

ground supported by record).  

          Four Corners extrapolated its estimates  of future lost
                                                                           

profits based on its performance during the two years immediately

preceding  trial; that  is,  it assumed  that Mobil's  refusal to

renew  its franchise was alone  responsible for the dismal profit

picture  during the time  Four Corners  was in  serious financial

straits and  selling Exxon gasoline.5   During the  first quarter

of 1993 alone, Four  Corners lost $47,754, compared with  a $107-

,154 net  profit in  1990, this notwithstanding  the infusion  of
                                                         

approximately $215,000 in profits and interest income which could

not have been realized  but for Mobil's termination of  the fran-

chise in 1988.  See  supra note 4.  Thus, Four  Corners projected
                                    

continued future business operations  despite such severe  losses
                    
                              

     5The chapter 11 filing constituted an event of default under
the Agreements, see Agreement    24(B)(4), and may have  afforded
                             
Mobil an independent basis for termination or nonrenewal in 1991.
Although it  is questionable whether  a franchisor could  rely on
such  an event to  cut off PMPA  damages if it  appeared that the
                                                     
franchisor wrongfully refused  to renew prior  to the chapter  11
petition,  thereby causing  the franchisee's  financial problems,
                                    
Four  Corners'  greater profits  in  the  years  1988-91 tend  to
                                         
undercut such a causal connection. 

                                21


as would make  its prospects for  continued operation until  1998
                                                                           

highly speculative.  See  Midwest Petroleum Co., 644 F.  Supp. at
                                                         

1070 ("To  warrant a recovery  of lost profits,  the [franchisee]

must  present proof  sufficient to  bring the  issue  outside the

realm of conjecture, speculation or opinion unfounded on definite

facts.").

          Finally, even if Four Corners had been able to continue

in  business until  1998, its  claim to  $171,000 in  future lost

profits would be groundless given the record evidence that it had

already realized an aggregate net increase in profits and  inter-
                                                    

est approximating $215,000 during the five-year period immediate-

ly prior to trial.  See supra  note 4.  Accordingly, even if  the
                                       

district court  had allowed  all speculative lost  future profits

claimed,  Four Corners  still would  have  realized approximately

$44,000 in aggregate net profits ($215,000 net increased profits,

less $177,000 future profits)  during the projected ten-year life

span  of  the franchise  following  Mobil's  wrongful refusal  to

renew. 

D.   Attorney Fees Under PMPA
          D.   Attorney Fees Under PMPA
                                       

          Lastly, Four  Corners  challenges  the  denial  of  its

request for an attorney fee award against Mobil based on the PMPA

violation.  First,  it claims that  the district court's  factual

findings were inadequate under  Fed. R. Civ.  P. 52.  Second,  it

says that the district  court was somehow constrained to  allow a

fee award because Congress meant to encourage prevailing franchi-

sees to vindicate their rights under PMPA. 

                                22


          A  denial of an attorney fee award is reviewed only for

abuse of discretion.  See Catullo v. Metzner, 834 F.2d 1075, 1085
                                                      

(1st Cir. 1987).   Under PMPA, see 15 U.S.C.    2805(d)(1)(C), an
                                            

attorney fee award is  discretionary where the plaintiff recovers

neither  actual nor exemplary damages.  Not only did Four Corners

sustain no  provable damages,  but the record  evidence indicates

that  it generated  approximately $44,000  more in  aggregate net

profits during  the projected  remaining life span  of the  Mobil

franchise  as a consequence of  having been freed  from the Mobil

franchise  gallonage  caps since  1988.    Four Corners  likewise

failed  to win  equitable reinstatement  of its  Mobil franchise.

Cf.  Chestnut Hill Gulf, Inc.  v. Cumberland Farms,  Inc., 749 F.
                                                                   

Supp. 331, 333 (D. Mass. 1990) (plaintiff which obtains equitable

relief under PMPA is  entitled to attorney fee award  even absent

recovery of actual or exemplary damages).  

          Without in  any sense diminishing Mobil's  clear viola-

tion of  PMPA, we cannot  say that the district  court abused its

discretion  in  denying an  attorney  fee  award on  the  present

record.  Nor do we think  that Congress intended to compel attor-
                                                                    

ney  fee awards  under PMPA  as an  inducement to  franchisees to

pursue vindication in these circumstances.

          The  district court  judgment is  affirmed.   Costs are
                    The  district court  judgment is  affirmed.   Costs are
                                                                           

awarded to cross-appellee in appeal No. 94-1718.
          awarded to cross-appellee in appeal No. 94-1718.
                                                         

                                23