Judge Dismisses Gasoline Price-Fixing Suit

An appeals court in San Diego ruled that eight major oil companies proved they did not work together to restrict the supply of the state’s cleaner-burning gasoline so prices would rise. The 4th District Court of Appeal granted the oil companies’ motion of summary judgment, dismissing the consumer class-action lawsuit filed in 1996 after California’s reformulated, cleaner-burning gasoline was introduced and prices soared. The appeals court agreed with a 1997 Superior Court ruling in favor of the oil companies. That ruling was reconsidered in 1998 by Superior Court Judge David Danielsen, who granted a motion for a new trial. The appeals court said it found no evidence of an agreement among the companies: Atlantic Richfield Co.; Chevron Corp.; Exxon Corp. and Mobil Corp., which have since merged to form Exxon Mobil; Shell Oil Co.; Texaco Inc.; Tosco Corp. and Ultramar Inc. Unocal Corp. agreed to a $3-million settlement last year, admitting no wrongdoing. The opinion said the oil companies made individual decisions to maximize profit. Arco and Chevron said they were gratified by the decision. Tim Cohelan, a lawyer for the plaintiffs, vowed to appeal. Gas pricing in California continues to be a hot subject, with continuing investigations by the Federal Trade Commission and California Atty. Gen. Bill Lockyer.