EXXONMOBIL OIL CORPORATION, APPELLANT,
v.
STATE OF FLORIDA, DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES, APPELLEE

Fla. 1st DCA | 2010-12-28
No. 1D10-0254
ROBERTS and WETHERELL, JJ., concur.
50 So. 3d 755 Florida District Court of Appeal, First District (2010) Positive Treatment
Cited by 5 cases

AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.

Synopsis

ExxonMobil sought a declaratory statement from the Florida Department of Agriculture regarding the application of Florida's Price Gouging Law to wholesale gasoline transactions and the relevance of the Gulf Coast Regional Platts Index. The Department dismissed the petition, but the court reversed, holding that the agency must respond to ExxonMobil's discrete questions about the law's scope.


Holding

The court reversed the Department's dismissal and remanded with directions to respond to two discrete questions: (1) whether Florida's Price Gouging Law applies to commercial wholesale gasoline transactions, and (2) whether ExxonMobil's use of the Gulf Coast Regional Platts Index protects it from enforcement action. The agency cannot decline a declaratory statement petition merely because the answer would benefit similarly situated businesses, nor can it avoid responding based solely on the issuance of investigative subpoenas.


Headnotes

[1] An agency may not decline to respond to a petition for a declaratory statement simply because the statement would be of interest to other similarly situated entities with…

[2] The purpose of a declaratory statement is to enable the public to definitively resolve ambiguities of law and secure binding advice as to the applicability of agency-enfo…

Previewing 2 of 6 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.

Join FLexlaw to unlock all legal intelligence

Key Quotes

“to enable members of the public to definitively resolve ambiguities of law arising in the conduct of their daily affairs or in the planning of their future affairs”

Establishes the purpose of declaratory statement proceedings under section 120.565

Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.

Join FLexlaw to unlock all legal intelligence

Facts & Procedural History

ExxonMobil, along with 15 other major wholesale gasoline distributors, uses the Gulf Coast Regional Platts Index as the pricing indicator for gasoline…

The full statement of facts, procedural history, and disposition for this case are member content.

Join FLexlaw to unlock all legal intelligence

© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.


Opinion of the Court
WOLF, J.

ON MOTION FOR CLARIFICATION

WOLF, J.

On consideration of the Motion for Clarification filed by appellee, we withdraw the previous opinion and substitute the following.

ExxonMobil petitioned the Department of Agriculture (the Department) for a declaratory statement pursuant to section 120.565, Florida Statutes (2009), seeking *757clarification of Florida’s Price Gouging Law (embodied in section 501.160, Florida Statutes (2009)). The Department dismissed the Petition and ExxonMobil seeks review of this dismissal order. Because we find the grounds raised by the Department did not prohibit the Department from responding to the Petition as to two, discrete questions, we reverse.

Section 501.160, Florida Statutes (1992), was passed to prevent “dramatic increases in the prices of certain essential commodities” during “certain periods of disaster.” The Law prohibits unconscionable price increases, which it defines as a “gross disparity” between the average cost of the commodity 30 days prior to a declared state of emergency and the current price of the commodity. However, the Law exempts price increases attributable to “additional costs ... or national or international market trends.” § 501.60(l)(b), Fla. Stat. (2009).

While it is somewhat difficult to extrapolate concrete questions from the 26-page Petition, the essence of the Petition focuses on two major concerns. First, Exxon-Mobil draws attention to the fact that it and 15 other major wholesale gasoline distributors use the Gulf Coast Regional Platts Index as the pricing indicator for purchase and sale contracts of gasoline. Because this Index is regional in nature, ExxonMobil is concerned the Index may not be considered an increased “national or international market trend” as that term is used in the Price Gouging Law. § 501.160(l)(b), Fla. Stat. Second, Exxon-Mobil states in the past, the Price Gouging Law has only been applied to branded retail gasoline and asks for clarification as to whether the Price Gouging Law may be enforced against wholesale gasoline corporations specializing in the sale of gasoline from one commercial entity to another.

In Florida Department of Business & Professional Regulation, Division of Pari-Mutuel Wagering v. Investment Corp. of Palm Beach, 747 So.2d 374 (Fla.1999), the supreme court broadened the previously narrow interpretation of section 120.565, Florida Statutes concerning when declaratory statements were available. In doing so, the court noted the purpose of the declaratory statement was “ ‘to enable members of the public to definitively resolve ambiguities of law arising in the conduct of their daily affairs or in the planning of their future affairs’ and ‘to enable the public to secure definitive binding advice as to the applicability of agency-enforced law to a particular set of facts.’ ” Id. at 382 (quoting Patricia A. Dore, Access to Florida Administrative Proceedings, 13 Fla. St. U. L. Rev. 965 (1986)). Further, in broadening the statute’s application, the court explained:

It must be observed that under circumstances such as those presented in this case, involving such a unique industry having very limited participants engaged in almost identical operations, declaratory statements as to one would almost invariably be of interest to others in the very limited group.

Id. at 385. The court warned against declining to provide declaratory statements in these situations, noting this “hypertech-nical interpretation of section 120.565” would serve “no logical end.” Id. at 385.

Here, ExxonMobil is a member of the public seeking to clarify whether its past and present use of the Gulf Coast Regional Platts Index protects it from a state action alleging a violation of the Price Gouging Law. The Department points out that the answer to this question could affect 15 other similarly situated businesses using the same Index. However, as noted above, the supreme court has previously concluded declaratory statements are ap*758propriate where a petition is filed by an individual corporation alleging a “particular set of circumstances” involving “a unique industry having very limited participants engaged in almost identical operations.” Inv. Corp., 747 So.2d at 385.

Thus, an agency may not decline to respond to a petition for a declaratory statement simply because “declaratory statements as to one would almost invariably be of interest to others in the very limited group.” Id. In fact, as noted in Investment Corp., “it is highly debatable whether the declaratory statement statute was ever limited to a singular consideration of the petitioner’s unique situation only.” Id. at 383 (citing Inv. Corp. of Palm Beach v. Div. of Pari-Mutuel Wagering, Dep’t of Bus. & Prof'l Regulation, 714 So.2d 589, 594 n. 7 (Fla. 3d DCA 1998) (Cope, J., dissenting).1

Further, refusing to answer the question serves no logical end and thwarts the purpose behind section 120.565 by foreclosing ExxonMobil from securing “definitive binding advice as to the applicability of agency-enforced law to a particular set of facts.” Inv. Corp., 747 So.2d at 382 (citations omitted).

The Department also argues that because it issued investigative subpoenas prior to ExxonMobil’s filing of the Petition, it was prohibited from responding. It is true Florida courts, including this one, have generally held that an administrative agency must decline to provide a declaratory statement when the statement would address issues currently pending in a judicial proceeding. See Padilla v. Liberty Mut. Ins. Co., 832 So.2d 916, 919 (Fla. 1st DCA 2002); Novick v. Dep’t of Health, Bd. of Med., 816 So.2d 1237, 1240 (Fla. 5th DCA 2002); Suntide Condo. Ass’n v. Div. of Fla. Land Sales, 504 So.2d 1343, 1345 (Fla. 1st DCA 1987); Couch v. State, 377 So.2d 32, 33 (Fla. 1st DCA 1979). However, we find this line of cases is inapplicable to the underlying situation. Service of investigatory subpoenas allows agencies to collect information prior to deciding if an enforcement action is necessary; the issuance of these subpoenas does not necessarily result in litigation. Accepting the Department’s position would allow agencies to avoid responding to requests for declaratory statements for lengthy time periods even where litigation was not imminent. Accordingly, we reject the Department’s reliance on this ground for dismissal of the underlying Petition.2

*759For the foregoing reasons, we reverse and remand with directions to the Department to respond to the questions of (1) whether Florida’s Price Gouging Law applies to commercial wholesale gasoline transactions such as those engaged in by-ExxonMobil, and (2) whether ExxonMo-bil’s use of the Gulf Coast Regional Platts Index protects it from an enforcement action under the Price Gouging Law.

ROBERTS and WETHERELL, JJ., concur.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By

  • …May of 2018.5 We agree that the PSC is under no obligation to make declaratory statements as to rights being actively litigated either before it in another docket or elsewhere. See ExxonMobil Oil Corp. v. State, Dep’t. of Agric. & Consumer Servs., 50 So. 3d 755, 758 (Fla. 1st DCA 2010) (“Florida courts, including this one, have generally held that an administrative agency must decline to provide a declaratory statement when the statement would address issues currently pending in a judicial proceeding.”); G…
  • Soc'y for Clinical & Med. Hair Removal v. Dep't OF Health, 183 So. 3d 1138 (Fla. 1st DCA 2015)
    …king, it should have petitioned for rulemaking under section 120.54(7) instead of a declaratory statement under section 120.565. See Investment Corp., 747 So. 2d at 385-86. In ExxonMobil Oil Corp. v. Department of Agriculture and Consumer Services, 50 So. 3d 755 (Fla. 1st DCA 2010), we reversed an order dismissing a petition for declaratory statement seeking clarification of a statute enforced by the agency. In doing so, we observed that the agency’s refusal to answer the question raised in the petition “se…
  • …ral agency policy”) (emphasis added). Moreover, the Department may not avoid issuing a declaratory statement merely because the statement would affect other industry participants. See ExxonMobil Oil Corp. v. State, Dep’t of Agric. & Consumer Servs., 50 So. 3d 755, 758 (Fla. 1st DCA 2010). In conclusion, we reverse the declaratory statement to the extent it concluded the Beverage Law precluded Martinibar from accepting deliveries at catered-event sites where it lawfully serves alcohol. As to the remaining iss…

Authorities Cited

Full citator, related cases, and AI research tools

Open in FLexlaw