Quality Oil accused of selling contaminated fuel at the pump
A lawsuit has been filed against Winston-Salem's Quality Oil, claiming the company sold contaminated gasoline at the pump for years at its convenience store chain.
The complaint was filed on May 29, 2025, in U.S. Middle District of N.C. by Morganton resident Stanley Somerville and Lenoir resident Michael Genwright.
A similar lawsuit was filed on April 15, 2026, in Forsyth Superior Court. The lawsuit was remanded to the Forsyth court on June 9, 2026, at the request of Quality Oil and Reliable Tank Line LLC.
The plaintiffs are pursuing six claims: violation of N.C. Unfair and Deceptive Practices Act; negligent misrepresentation; breach of the implied warranty of merchantability under the Uniform Commercial Code; unjust enrichment; negligence; and civil conspiracy.
Quality Oil: What was the actual injury?
Quality Oil said in its dismissal request that the plaintiffs can't prove "actual injury" from the allegations, and have not "adequately pled they were injured by such goods."
Somerville said in the lawsuit that he paid $15 for five gallons of regular gasoline on Nov. 29, 2023. The lawsuit does not claim how much Genwright paid for his Nov. 29, 2023, gasoline purchase.
The class-action request would make eligible any consumer who purchased what the lawsuit says was contaminated gasoline at one or more of Quality Oil's 130 convenience store locations in North Carolina over an undefined four-year period.
The plaintiffs are requesting reimbursement of their gas expenditures, at least $25,000 in damages for themselves and each class action member, and penalties.
The plaintiffs claim the contaminated fuel "could cause damage to their vehicle, including potentially disabling their vehicle on dangerous roadways."
They also claim Quality Oil "capitalized and reaped enormous profits from reasonable consumers like the plaintiffs."
"Even if there were some monetary value in the fuel, which plaintiffs deny, reasonable consumers, including plaintiffs, paid more for the contaminated fuel than they would have had they known the truth about the contamination."
Quality Oil's filing to dismiss the lawsuit with prejudice — meaning it can't be refiled — has been put on hold until at least the end of October to allow an arbitration decision.
Quality Oil said in a statement that the company "has built its reputation over generations by upholding the highest standards of integrity, honesty and service. These core values guide every aspect of our business and remain at the heart of how we serve our customers each day."
"We believe the legal filing is completely without merit and look forward to vigorously defending ourselves in court."
The allegations
Genwright and Somerville claim they became aware that they had been sold what they say was contaminated regular gasoline after a Nov. 29, 2023, purchase at the Quality Plus location in Morganton's Carbon City neighborhood.
They claim the gasoline "did not match the (87) grade advertised at the pump, it was worthless and not fit for use by vehicles."
They claim the fuel they were sold had either been poured into the wrong tanks or had been contaminated by exposure to rainwater, farm-grade diesel fuel, and other substances.
Rather than storing the contaminated fuel, Quality Oil has been accused of using it to "top off fuel deliveries to fuel stations," with much of that activity reportedly taking place at its Winston-Salem operations off Silas Creek Parkway.
The lawsuit says Quality Oil and Reliable Transport did not take the steps required by state law to re-refine or re-blend the contaminated fuel to make it usable again.
The companies are accused of not having any corporate procedures for "properly cleaning contaminated tanks of fuel."
Quality Oil said in court documents its production and sales practices conform to state law.
rcraver@wsjournal.com 336-727-7376 @rcraverWSJ
