A racial discrimination suit by D.C.-based DAG Petroleum Suppliers against petroleum giant BP and BP Products North America Inc. was shot down by the U.S. Court of Appeals for the 4th Circuit in a unanimous decision Wednesday. DAG, an African-American-owned company which owns about 30 Shell gas stations in the D.C. area, claimed its unsuccessful $127 million bid in a 2005 auction of 182 BP gas stations in the Washington-Baltimore area was millions higher than the successful bid from white-owned Eastern Petroleum Corp., which bought most of the stations.
DAG, which was seeking more than $150 million in damages, also claimed BP misled the company about the auction criteria and leaked inside information about the bid process to Eastern, which was not a defendant in the suit.
The 4th Circuit didn’t buy any of the arguments and affirmed a summary judgment for BP delivered by senior U.S. District Judge James Cacheris from the Eastern District of Virginia. The court found that DAG’s argument “is comprised solely of inferential leaps and speculative conclusions as to what a jury might find.”
The per curiam opinion was issued by Judge Allyson Duncan, Judge William Traxler Jr., and James Jones, chief U.S. District judge for the Western District of Virginia sitting by designation. Richard Godfrey with Kirkland & Ellis in Chicago represented BP. Roy Englert Jr. with Robbins, Russell, Englert, Orseck, Untereiner & Sauber in the District represented DAG. Neither attorney could be reached for comment today.
A BP spokesman says the company is pleased with the decision, which confirms BP's commitment to a "diverse and inclusive workplace" and diversity in dealing with customers.
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