Trump-Praised Freedom Fuel Stations Tied to Nearly $4 Million Unpaid Gas Lawsuit

Mansfield Oil Company has sued KRSM Inc. for nearly $4 million, alleging the fuel dealer failed to pay for more than 1.1 million gallons of gasoline, some of which was later supplied to stations in the Freedom Fuel Network praised by President Donald Trump.

The lawsuit, filed August 19 in the U.S. District Court for the Eastern District of Pennsylvania, claims KRSM obtained about 150 loads of gasoline from Mansfield’s account at the Twin Oaks fuel terminal in Aston, Pennsylvania, between May 21 and July 7. The shipments totaled 1,124,594 gallons and were valued at $3,998,868.46.

Freedom Fuel drew national attention in July when participating stations offered gasoline for $3.47 a gallon, a reference to Trump being the 47th president. Trump publicly praised the promotion and encouraged other retailers to follow. Mansfield alleges that KRSM supplied some of the disputed gasoline to Freedom Fuel stations and claims the dealer was able to offer fuel at unusually low prices because it had not paid for the product. Mansfield’s legal claims are directed at KRSM and its president, Syed Kazmi.

KRSM had been purchasing fuel from Mansfield on credit since 2022 under an agreement signed by Kazmi. The agreement required the company to pay for fuel bought on credit within 10 days after receiving an invoice. Unpaid balances could accrue interest at 1.5 percent per month.

Mansfield acknowledges that a problem with its own data system delayed the invoices until early July. The supplier says it notified Kazmi of the error on July 8 and sent the outstanding bills. The companies then discussed what Mansfield describes as minor pricing discrepancies before revised invoices were sent July 17.

Kazmi has challenged the amount Mansfield says KRSM owes. In an August 25 court declaration, he said he did not agree that the amounts demanded were correct or owed and raised alleged discrepancies in the invoices, including charges that appeared to have been counted twice. An attorney for KRSM has described the lawsuit as an accounting dispute involving fuel invoices the company says Mansfield mispriced.

Mansfield alleges it attempted to collect payment from KRSM’s bank account on July 27 and July 28, but the transactions were refused. The complaint also claims Kazmi told Mansfield personnel during several calls through August 10 that KRSM would pay for the gasoline.

Mansfield’s main claim is breach of contract. The company argues KRSM violated the 2022 credit agreement by accepting gasoline and failing to pay for it under the agreed terms. In a contract dispute, a court generally looks at what the parties agreed to do and whether one side failed to meet those obligations.

The supplier also relies on Pennsylvania’s version of Article 2 of the Uniform Commercial Code, which governs sales of goods. The law gives sellers several remedies when buyers fail to pay and, under certain circumstances, allows a seller to recover the purchase price of goods a buyer has accepted. Mansfield argues that the rule applies because KRSM took possession of the gasoline and resold it without paying the amount due.

The complaint also includes unjust enrichment and account stated claims. Unjust enrichment can allow recovery when one party receives a benefit that it would be unfair to keep without paying for it. An account stated claim can apply when parties have reached an understanding about an existing balance. Mansfield argues that KRSM received revised invoices after the pricing discussions and did not object to the updated amount at the time.

Another claim accuses KRSM of conversion, a civil wrong involving improper control over property in a way that interferes with another party’s rights. Mansfield alleges KRSM exercised control over the gasoline by taking possession of it, distributing or reselling it, and refusing to pay the agreed price. The supplier is seeking punitive damages on that claim, alleging KRSM acted intentionally and disregarded Mansfield’s property rights.

The lawsuit seeks at least $3,998,868.46, along with interest, collection costs and attorneys’ fees. On August 28, the federal judge overseeing the case partially granted Mansfield’s request for a preliminary injunctionpreliminary injunctionA preliminary injunction is a temporary court order issued before a case is finally decided that requires a party to take or stop an action while the litigation continues. Federal courts generally consider the likelihood of success, irreparable harm, the balance of equities, and the public interest before granting one.Read more → and ordered KRSM and Kazmi to maintain at least $2.75 million in a bank account while the dispute proceeds. The case remains pending in federal court in Pennsylvania.