Esso to contest petrol dealers' suit

Esso Malaysia Bhd has confirmed that the association of Esso petrol station operators has filed legal action against the company and that it will contest the legal challenge. In a statement, Esso stated that: “Esso entered into negotiations for a new license agreement with its service station dealers. Esso wishes to highlight that each individual service station dealer signed the new license agreement after negotiations, which was facilitated by the Ministry of Domestic Trade and Consumer Affairs.” Business Times reported that the Esso Petrol Dealers’ Association is seeking compensation of RM44 million (US$12.7 million) for the harassment and mental anguish of their dealer members, calculated at RM100,000 (US$28,922.63) per dealer. The association is also seeking a sum of RM1 million (US$289,226.32) for every petrol station that was forced to close as a result of a new agreement that the association signed with Esso. (June 9, 2007)