Citgo Petroleum Corporation filed the lawsuit against Daibes Oil and Fred A. Daibes in the Southern District of Texas, Houston Division, on October 14.

The lawsuit alleges that Citgo and Daibes Oil entered into a marketer-franchise agreement whereby Daibes would purchase motor fuel from Citgo for resale under the Citgo brand name to consumers and retailers. According to the complaint, they entered into the agreement on February 16, 2012.

Also according to the complaint, Daibes Oil has failed to pay more than $359,000 for fuel purchases made in January. Citgo also alleges that in 2013, Fred Daibes signed a guaranty for the agreement, and that he has failed to comply with its terms.

Citgo also alleges that it provided branding materials on the condition that Citgo would be reimbursed if the service stations debranded within a 60-month amortization period, and that Daibes Oil failed to reimburse Citgo under the contract. Citgo also alleges trademark infringement, claiming that Daibes Oil has sold non-branded motor fuel under Citgo’s name.

Citgo is seeking damages, interest, attorney’s fees and costs.

Gregory D. Jordan is an Austin business attorney and business litigation lawyer. To learn more, visit http://www.theaustintriallawyer.com or call 512-419-0684.