Fuel Supplier Lawsuit Against New Jersey Distributor

A fuel supplier has initiated a lawsuit against a New Jersey distributor and its president, claiming they failed to pay for gasoline sold through stations connected to the Freedom Fuel Network, which was highlighted by former President Trump.

Mansfield Oil Company filed this complaint against KRSM Inc. and president Syed Kazmi on August 19 in the U.S. District Court for the Eastern District of Pennsylvania. The lawsuit states that KRSM procured around 150 shipments of fuel from its account at the Twin Oaks terminal in Pennsylvania from May 21 to July 7, totaling about 1,124,594 gallons with an approximate value of $3,998,868.46.

Mansfield asserts that KRSM sold part of this fuel to its stations within the Freedom Fuel Network, reportedly at lower prices since they hadn’t paid Mansfield for it. However, these allegations are still pending in court.

KRSM had been doing business with Mansfield since 2022. A commercial credit application, included with the lawsuit and signed by Kazmi, outlines that if credit was extended to KRSM, the company would be responsible for payments. Payment was supposed to be completed by electronic transfer within ten days of receiving an invoice.

Mansfield acknowledged in the complaint that a data-receiving error had delayed invoicing until early July. They later addressed minor pricing issues with Kazmi, adjusted the invoices, and sent them on July 17. Mansfield claims that their bank informed them KRSM had refused attempts to draft funds from its account.

KRSM disputes Mansfield’s account of the situation, with Kazmi stating in an August 25 court declaration that he disagreed with the amounts claimed by Mansfield. KRSM argues the disagreement revolves around the fuel prices charged by Mansfield and asserts that they raised concerns about the invoices prior to the lawsuit.

Mansfield’s attorney, Urs Broderick Furrer, indicated via email that delivery records from the carrier show hundreds of thousands of gallons were delivered between May 21 and July 7 to multiple locations affiliated with the Freedom Fuel Network.

Furrer rejected KRSM’s framing of the dispute as merely accounting-related, claiming none of the about 1.1 million gallons of gasoline mentioned had been paid for. He also noted that KRSM had resold all the fuel, a point that KRSM contests in their court filings.

On August 28, Judge Gerald Austin McHugh vacated a previous temporary restraining order that had frozen funds in an M&T Bank account, while partially granting Mansfield’s request for a preliminary injunction, ordering the defendants to keep at least $2.75 million in the account as the case continues.

The Freedom Fuel Network gained national recognition after reducing pump prices as part of Trump’s initiative for cheaper gasoline. The White House had released a promotional video for the network on July 7.

Freedom Fuel characterizes itself on its website as a company that answered Trump’s call to action to lower gasoline prices. They assert that they took quick steps to make filling up more affordable for families in the Philadelphia area. According to claims on their site, 25 participating stations saw an average volume boost of over 50% following the price cuts, with some stations reporting increases exceeding 100%. These figures, however, have not been independently verified.

Mansfield’s lawsuit includes accusations of breach of contract, unjust enrichment, and conversion, seeking at least $3.998 million along with interest, costs, and additional damages.

Efforts to reach attorneys for KRSM, Kazmi, and the Freedom Fuel Network for comments have been made.