Franchisor is Entitled to Recover Attorney's Fees for defending Franchisee's Frivolous Lawsuit

Chevron U.S.A. sued Franchisee gas station owners for declaratory relief. Franchisee filed a counterclaim. After a 6-day trial, the court ruled in favor of Franchisor and found the conterclaim to be 'frivolous.' Held: Under the provisions of the Petroleum Marketing Practices Act (PMPA), 15 U.S.C. § 2805(d), Franchisor is entitled to recover its attorney's fees for defending Franchisee's frivolous counterclaim.
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