Sunoco retailers in Ontario have launched a class-action lawsuit, seeking up to $200-million, against Suncor Energy Inc., alleging the company has violated their franchise agreements by planning to terminate their stations.
The suit claims Suncor made an internal announcement last week that it was planning to terminate franchise agreements with all 300 independent Sunoco retailers in the province.
Of the 300 sites, 100 would be sold in April while the rest will be re-branded under the Petro-Canada banner with different operators, the suit alleges.
The retailers argue Suncor violated Ontario franchise legislation, preventing them from exercising their rights to rescind their agreements for compensation.
The claims have not been proven in court.
A spokesperson with Calgary-based Suncor was not immediately available for comment.
David Sterns of Sotos LLP is representing the retailers.
Suncor and Petro-Canada officially merged last August, creating the largest energy company in Canada.
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