Brabham Oil Company, Inc. v. Fuel Trader Supply, LLC, Blue Earth Resources, Inc., Fuel Trader Resource Management, Inc., William R. Eaton, Scott M. Boruff, Charles B Lobetti, III, Gary W. Ford, Jr.

CourtDistrict Court, D. South Carolina
DecidedDecember 9, 2025
Docket5:24-cv-01170
StatusUnknown

This text of Brabham Oil Company, Inc. v. Fuel Trader Supply, LLC, Blue Earth Resources, Inc., Fuel Trader Resource Management, Inc., William R. Eaton, Scott M. Boruff, Charles B Lobetti, III, Gary W. Ford, Jr. (Brabham Oil Company, Inc. v. Fuel Trader Supply, LLC, Blue Earth Resources, Inc., Fuel Trader Resource Management, Inc., William R. Eaton, Scott M. Boruff, Charles B Lobetti, III, Gary W. Ford, Jr.) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Brabham Oil Company, Inc. v. Fuel Trader Supply, LLC, Blue Earth Resources, Inc., Fuel Trader Resource Management, Inc., William R. Eaton, Scott M. Boruff, Charles B Lobetti, III, Gary W. Ford, Jr., (D.S.C. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT DISTRICT OF SOUTH CAROLINA

Brabham Oil Company, Inc., C/A No. 5:24-cv-1170-JFA

Plaintiff, v.

MEMORANDUM OPINION AND Fuel Trader Supply, LLC, Blue Earth ORDER Resources, Inc., Fuel Trader Resource Management, Inc, William R. Eaton, Scott M. Boruff, Charles B Lobetti, III, Gary W. Ford, Jr.,

Defendants.

I. INTRODUCTION This matter is before the Court over a dispute concerning $1,500,000.00 (“Escrowed Funds”) held in trust at Galivan White and Boyd, P.A. Currently pending before the Court are Defendants Gary W. Ford (“Ford”) and William R. Eaton’s (“Eaton”) Expedited Motion for Preliminary Injunction (ECF No. 123), Defendant Eaton’s Motion for Release of Funds held in Trust (ECF No. 113), Defendants Fuel Trader Supply, LLC (“FTS”), Blue Earth Resources Inc. (“BERI”), Fuel Trader Resource Management, Inc. (FTRM), Scott M. Boruff (“Boruff”), and Charles B. Lobetti’s (“Lobetti”) Expedited Motion for Approval to Distribute Funds (ECF No. 117), and Ford’s Motion for Summary Judgment as to his crossclaims against FTS, BERI, and FTRM for indemnification (ECF No. 112). This Court held an emergency hearing on November 6, 2025, at the request of the parties to hear argument on the Expedited Motion for Approval to Distribute Funds and the Expedited Motion for Preliminary Injunction. Thereafter, this Court received a Reply brief for the Preliminary Injunction, and a Response and Reply to Defendant Eaton’s Motion for

Release of Funds held in Trust. The time for a Response to the Expedited Motion for Approval to Distribute Funds has elapsed without the filing of a Response; however, the briefing for the Expedited Motion for Preliminary Injunction squarely addresses the arguments in that motion. Thus, the Motion for Preliminary Injunction (ECF No. 123), Defendant Eaton’s Motion for Release of Funds (ECF No. 113), and the Motion for

Approval to Distribute Funds (ECF No. 117) are ripe for review. For the reasons discussed herein, Defendant Eaton and Ford’s Motion for a Preliminary Injunction is denied, the Settling Defendants’ Motion for Approval to Distribute Funds is dismissed as moot, Defendant Eaton’s Motion for Release of Funds is

denied, and Defendant Ford’s Motion for Summary Judgment insofar as it requests a release of funds is denied. II. FACTS

This case arises out of a longstanding business relationship between Plaintiff Brabham Oil Company, Inc. (“Brabham”) and FTS, FTRM, and BERI (collectively “Corporate Defendants”). In 2018, Plaintiff entered into buy-sell agreements with FTS whereby Plaintiff paid FTS for the purchase of certain fuel products. (ECF No. 27, p. 6). FTS would then purchase products, sell them to customers, and repay Plaintiff for money received plus interest. Id. It appears this buy-sell arrangement proceeded without incident

from 2018 until 2022. In September 2022, BERI acquired FTS and FTRM. Ultimately, a breakdown in this buy-sell arrangement occurred. Plaintiff sued the Corporate Defendants as well as Eaton, Ford, Lobetti, and Boruff—officers of the Corporate Defendants in their

official capacities—on several causes of action. Importantly, Eaton and Ford filed cross claims against the Corporate Defendants for indemnity of any costs and judgments against them arising from Plaintiff’s claims. (ECF Nos. 68 & 72). FTS, FTRM, BERI, Boruff, and Lobetti (collectively “Settling Defendants”)

recently entered into a settlement agreement with Brabham. Two Defendants are not a party to that settlement agreement, Eaton and Ford (“Non-Settling Defendants”). At the outset of this action prior to its removal to this Court, Plaintiff obtained an ex parte Temporary Restraining Order (“TRO”) in state court which froze certain assets of the Corporate Defendants’ accounts. (ECF No. 123, p. 2). To resolve the TRO and allow the Corporate

Defendants to keep operating, Plaintiff and the Corporate Defendants entered into a consent order. Id. This consent order was entered by the Court of Common Pleas for Bamberg County, South Carolina and provided that $1,500,000.00 of the “monies held in the FTS JP Morgan Account” be transferred to the Gallivan White & Boyd Trust account “until further Order and direction of this court or pursuant to the joint agreement and direction

of both the Plaintiff and FTS.” (ECF Nos. 125, p. 2 & 117-1, p. 3 ¶ 3) (emphasis added). The Settling Defendants seek approval from this Court to distribute the funds held in trust to satisfy the settlement agreement entered into with Plaintiff. (ECF No. 117). The Settling Defendants indicate they intended to fulfill the terms of the settlement agreement

by disbursing the funds without seeking approval of this Court; however, they received an email from Defendant Eaton’s counsel regarding possible ethical considerations. (ECF No. 117, pgs. 3-4). Eaton’s counsel averred in his email that Eaton and Ford’s pending motions

concerning their claims of indemnity and advancement made it so these funds could not be ethically distributed without setting aside a sufficient amount for the Non-Settling Defendants’ defense costs. (ECF No. 117-2). Thus, the Settling Defendants filed their Motion for Approval to Distribute Funds requesting this Court approve the intended disbursement. (ECF No. 117, pgs. 3-4). Shortly thereafter, the Non-Settling Defendants filed their Motion for a Preliminary Injunction to prevent the disbursement of these funds.

(ECF No. 123). III. STANDARD OF REVIEW

A party seeking a preliminary injunction must establish four elements: (1) that they will likely succeed on the merits; (2) that they are likely to suffer irreparable harm in the absence of preliminary relief; (3) that the balance of equities tips in their favor; and (4) that the granting of the injunction is in the public interest. Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 20 (2008); see also Hoechst Diafoil Co. v. Nan Ya Plastics Corp., 174 F.3d 411, 422 (4th Cir. 1999); Fed. R. Civ. P. 65.

“The Fourth Circuit no longer recognizes a flexible interplay among these criteria. Instead, each requirement must be fulfilled as articulated.” De La Fuente v. S.C. Democratic Party, 164 F. Supp. 3d 794, 798 (D.S.C. 2016) (internal quotations omitted)

(citation omitted). IV. DISCUSSION

This Order addresses the Non-Settling Defendants’ Motion for a Preliminary Injunction (ECF No. 123), the Settling Defendants’ Motion for Approval to Distribute Funds (ECF No. 117), Defendant Eaton’s Motion for Release of funds (ECF No. 113), and Defendant Ford’s Motion for Summary Judgment insofar as it requests a release of the Escrowed Funds (ECF No. 112). 1

(A) Expedited Motion for Preliminary Injunction The Non-Settling Defendants filed this motion to “temporarily enjoin the Settling

Defendants from disbursing the Escrowed Funds as part of a settlement agreement with Plaintiff until a reasonable portion of the Escrowed Funds is allocated to the Moving Defendants to fund their continued litigation expenses.” (ECF No. 123, p. 2). The Non- Settling Defendants opine they “are entitled to a portion of the Escrowed Funds to fund their continued defense of the lawsuit brought against them by Plaintiff for actions

undertaken while serving as executives of FTS and/or BERI.” Id. at 1-2.

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Brabham Oil Company, Inc. v. Fuel Trader Supply, LLC, Blue Earth Resources, Inc., Fuel Trader Resource Management, Inc., William R. Eaton, Scott M. Boruff, Charles B Lobetti, III, Gary W. Ford, Jr., Counsel Stack Legal Research, https://law.counselstack.com/opinion/brabham-oil-company-inc-v-fuel-trader-supply-llc-blue-earth-resources-scd-2025.