Chevron defeats state court action alleging fraud and violations of California's UCL concerning gas station franchise agreements

Client(s) Chevron Corporation

Jones Day was retained by Chevron U.S.A., Inc. to defend the company after the plaintiff sued in state court alleging fraud and violations of California's UCL relating to certain gas station franchise agreements. On behalf of our client, Jones Day simultaneously demurred to the franchisee's state complaint in state court and asked a federal court to enjoin the state court lawsuit under an applicable exception to the Anti-Injunction Act. Based on Jones Day's argument that the state court action was barred by principles of res judicata, the federal court granted Chevron's motion and enjoined the franchisee from further pursuing his state court action.

Frydoun Sheikhpour v. Chevron U.S.A., Inc., Case No. BC453955 (LA Super. Ct.); Case No. CV07-4451 PSG (C.D. Cal.)