Oak River Holdings, LLC v. 7-Eleven, Inc.
3:23-cv-00763
S.D.W. VaJun 18, 2025Background
- Oak River Holdings, LLC owns property in Huntington, WV, leased to 7-Eleven, Inc. for use as a gas station since 2012.
- 7-Eleven eventually ceased operations and removed underground gasoline storage tanks and related equipment from the property without Oak River’s prior consent.
- Oak River demanded return and/or reinstallation of the removed equipment twice; 7-Eleven refused.
- Oak River sued, alleging breach of lease and bringing additional tort claims for waste and intentional tort based on the removal.
- Previously, the court denied a motion to dismiss Oak River's specific performance claim but was now asked to dismiss the tort claims.
- 7-Eleven moved to dismiss the tort claims under the 'gist of the action' doctrine, arguing they were contractual in nature.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Oak River's tort claims (waste, intentional tort) can proceed separately from its breach of contract claim under the 'gist of the action' doctrine | Oak River contends a duty to prevent waste exists independent of the lease, so tort claims should survive | 7-Eleven argues tort claims rely solely on alleged contractual duties and are barred by the 'gist of the action' doctrine | The tort claims are barred; Oak River’s claims do not allege any duty independent of the contract |
Key Cases Cited
- Gaddy Eng’g Co. v. Bowles Rice McDavid Graff & Love, 746 S.E.2d 568 (W. Va. 2013) (gist of the action doctrine prevents recasting contract claims as tort claims)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (standard for plausibility in pleadings)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (complaint must state a plausible claim to survive dismissal)
- Edwards v. City of Goldsboro, 178 F.3d 231 (4th Cir. 1999) (standards for courts reviewing motions to dismiss)
