Corbin v. Texaco, Inc. (690 F.2d 104, 1982)

BAILEY BROWN, Senior Circuit Judge.

Appellant Texaco appeals an order of the district court modifying a preliminary injunction. Texaco argues that this modification, which reduced the rent appellee Cor-bin was obligated by contract to pay Texaco, was beyond the power of the district court.

Texaco and Corbin entered into three-year sublease and sales agreements effective February 1, 1979, under which Corbin was to operate a Texaco service station in Memphis. The sublease specified the rental rates Corbin was obligated to pay Texaco. In February of 1980 the parties agreed to reduce the rent for the remaining period, the rent from February 1, 1981 to January 31, 1982 to be $1,453.00 per month.

Late in 1980, however, Texaco notified Corbin that it was terminating these agreements effective April 15, 1981. On April 8, 1981, Corbin filed a complaint and motion for a preliminary injunction under the Petroleum Marketing Practices Act (PMPA), 15 U.S.C. §§ 2801-2841 (1978). After an evidentiary hearing, the district court granted the preliminary injunction. But, although Texaco was enjoined from terminating the agreements, the preliminary injunction specifically provided that Corbin remained obligated under the contract to pay the agreed rent, and if Corbin defaulted, Texaco could proceed with termination. This order was not appealed.

Within six weeks Corbin filed a motion to modify the preliminary injunction, seeking inter alia a reduction in the rent. After oral argument and without taking further evidence the district court granted the motion. This modification order reduced the rent from the contractually required $1,453.00 per month to $953.00 per month for June 1981 through October 1981. To make up the $2,500 difference ($500 for five months), the order required Corbin to pay into an escrow account an additional 2