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Sunoco, Inc. (R & M) v. MX Wholesale Fuel Corp.

Citations: 565 F. Supp. 2d 572; 66 U.C.C. Rep. Serv. 2d (West) 280; 2008 U.S. Dist. LEXIS 46822; 2008 WL 2766170Docket: Civil Action 06-3933 (NLH)

Court: District Court, D. New Jersey; June 17, 2008; Federal District Court

Narrative Opinion Summary

The case involves a dispute between Sunoco, Inc. and MX Wholesale Fuel Corporation over an acknowledged debt of $1,533,894.00. Sunoco filed a motion for partial summary judgment, which was granted, due to MX's failure to respond to requests for admissions, thereby deeming the debt amount admitted under Federal Rule of Civil Procedure 36. Sunoco also implicated Monmouth Petroleum, Inc. as liable under an assignment agreement. Monmouth's cross-motion for summary judgment was denied, as the court determined Monmouth retained liability for its contractual duties under New Jersey law, despite assigning rights to MX. The court applied the standard that summary judgment is appropriate when no genuine issues of material fact exist. The case was governed by federal jurisdiction under the Petroleum Marketing Practices Act and diversity jurisdiction. The court also struck down Monmouth's certification for lacking compliance with procedural rules. The outcome favored Sunoco, with Monmouth unable to establish a valid defense against the alleged liabilities.

Legal Issues Addressed

Assignment of Contract Rights under UCC

Application: Monmouth retained liability for its contractual duties under New Jersey law, despite assigning rights under the agreement to MX.

Reasoning: The statute states that delegation does not relieve the delegating party of its obligations. Monmouth has not addressed this statute's applicability...

Federal Rule of Civil Procedure 36

Application: Sunoco's requests for admissions were deemed admitted due to MX's failure to respond within 30 days, establishing the debt amount owed.

Reasoning: Sunoco's requests for admissions, including a specific amount of $1,533,894.00, went unanswered within the required 30-day period, resulting in those matters being deemed admitted under Federal Rule of Civil Procedure 36...

Requirements for a Valid Guaranty

Application: The court found that Monmouth was not a guarantor for MX’s debts under the MX Assignment as it lacked explicit terms of guaranty.

Reasoning: Monmouth notes that the MX Assignment does not contain terms like 'guaranty' or indicate an agreement to pay MX's debts, a point Sunoco does not contest.

Summary Judgment Standards

Application: The court applied the standard that summary judgment is appropriate when there are no genuine issues of material fact.

Reasoning: The court outlined that summary judgment is appropriate when there are no genuine issues of material fact, referencing the standards set forth in relevant case law.