P.F.I., INC. V. KULIS
832 A.2d 931 (2003)
NATURE OF THE CASE: Kulis (D) gas station owner appealed from a judgment for P.F.I. (P),
gasoline wholesaler, on a contract claim for unpaid invoices, the balance of loans for
construction and environmental clean-up, and for lost profits. P cross-appealed from the
denial of its request for pre-judgment interest.
FACTS: D and her late husband operated a gas station and automobile repair shop. P and D
executed an agreement where P would supply gasoline to D for a five-year period. D was
required to purchase a minimum of 2,000,000 gallons 'in substantially equal monthly
quantities' during that period. The agreement provided for interest-free financing of
improvements to the service station in the amount of $40,000, to be paid off at the rate of
two cents per gallon from the gasoline sales. P also advanced D an emergency loan of
approximately $26,000 for environmental clean-up, which was to be repaid in 1993. D's
husband died in 1994, and she closed the automobile repair part of the service station.
Gasoline sales declined. D could not purchase all the gas under the agreement and was unable
to make the payments on the construction loan as anticipated from the gasoline sales. In
January 2000, D purchased another brand of gasoline which she commingled with the Texaco
fuel. P ceased delivery and demanded full payment of the outstanding account balance. P sued
for unpaid invoices, balance of the loans, and lost profits. P got a judgment in the amount
of $56,149.90 for unpaid gasoline invoices and the outstanding balance of the loans, and
$30,415.95 for lost profits. The court declined to apply the four-year statute of
limitations for the sale of goods. The court found that P was a lost volume seller and
entitled to lost profit of five cents per gallon on 608,319 gallons. Both parties appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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