All Star Imports, Inc. D/B/A World Car Mazda North// Mazda Motor of North America, Inc. A/K/A Mazda Motor of America, Inc. v. Board of the Texas Department of Motor Vehicles, and Mazda Motor of North America, Inc. A/K/A Mazda Motor of America, Inc.// Cross-Appellee, All Star Imports, Inc. D/B/A World Car Mazda North

Court of Appeals of Texas·Decided January 9, 2025·No. 15-24-00017-CV·Published

Opinion

ACCEPTED

15-24-00017-CV

FIFTEENTH COURT OF APPEALS AUSTIN, TEXAS

1/9/2025 12:12 PM

No. 15-24-00017-CV CHRISTOPHER A. PRINE CLERK

IN THE COURT OF APPEALS FOR THE FIFTEENTH DISTRICT OFILED F TEXAS

15th COURT

IN

OF APPEALS

AUSTIN, TEXAS

ALL STAR IMPORTS, INC. D/B/A WORLD CAR MAZDA NORTH 1/9/2025 ,

12:12:37 PM

CHRISTOPHER A. PRINE

Appellant and Cross-Appellee, Clerk

v.

MAZDA MOTOR OF NORTH AMERICA, INC. A/K/A MAZDA MOTOR OF AMERICA, INC.,

Cross-Appellant and Appellee, v.

BOARD OF THE TEXAS DEPARTMENT OF MOTOR VEHICLES, Appellee and Cross-Appellee.

On Appeal from Cause No. D-1-GN-23-005034 in the 345th Judicial District Court of Travis County, Texas

MAZDA’S RESPONSE TO MOTION TO STRIKE OR DISREGARD THE MERITS PORTIONS OF MAZDA’S CROSS-APPELLANT’S BRIEF

Brit T. Brown Jeff Nobles brit.brown@akerman.com jeff.nobles@huschblackwell.com Texas Bar No. 03094550 Texas Bar No. 15053050 Benjamin A. Escobar, Jr. HUSCH BLACKWELL LLP benjamin.escobar@akerman.com 600 Travis Street, Suite 2350 Texas Bar No. 00787440 Houston, Texas 77002 AKERMAN LLP Telephone: (713) 647-6800 1300 Post Oak Blvd., Suite 2300 Facsimile: (713) 647-6884 Houston, Texas 77056-3000 Telephone: (713) 623-0887 Facsimile: (713) 960-1527

ATTORNEYS FOR APPELLEE/CROSS-APPELLANT, MAZDA MOTOR OF NORTH AMERICA, INC. A/K/A MAZDA MOTOR OF AMERICA, INC.

TABLE OF CONTENTS

Page

Introduction ............................................................................................... 1 Background................................................................................................ 3 A. Mazda’s legal arguments are not based on the administrative record. ............................................................. 3 B. This case is not solely a “jurisdictional appeal.” .................... 4 Argument ................................................................................................... 6 I. Mazda’s brief is consistent with its previous filings and the Court’s September 24 Order.................. 6 II. The Court has the power to address Mazda’s arguments on the merits................................................ 9 III. Mazda preserved its merits arguments. ...................... 11 IV. The Motion’s “piecemeal” arguments are groundless. ................................................................... 12 Conclusion ............................................................................................... 16

ii

INDEX OF AUTHORITIES

Page(s)

Cases

Church v. City of Alvin, No. 01-13-00865-CV, 2015 WL 5769998 (Tex. App.—Houston [1st Dist.] Sept. 29, 2015, no pet.)........................................................... 6, 14

El Paso Nat. Gas Co. v. Minco Oil & Gas, Inc., 8 S.W.3d 309 (Tex. 1999) ............................................................... 15, 16

First United Pentecostal Church of Beaumont v. Parker, 514 S.W.3d 214 (Tex. 2017) ................................................................. 15

Fredonia State Bank v. General Am. Life Ins. Co., 881 S.W.2d 279 (Tex. 1994) ................................................................. 10

Grand Prairie Hosp. Auth. v. Tarrant Appraisal Dist., 707 S.W.2d 281 (Tex. App.—Fort Worth 1986, writ ref d n.r.e.) .... 5, 13

Horizon Health Corp. v. Acadia Healthcare Co., Inc., 520 S.W.3d 848 (Tex. 2017) ................................................................. 15

In re Shafer, No. 01-24-00190-CR, 2024 WL 2965236 (Tex. App.—Houston [1st Dist.] June 13, 2024, orig. proceeding) ................................................ 17

Malone v. Pub. Util. Comm'n of Tex., No. 03-11-00815-CV, 2013 WL 4820454 (Tex. App.—Austin Aug. 28, 2013, no pet.) ............................................................................ 18, 19, 20

Patel v. Trevino, No. 01-20-00445-CV, 2022 WL 3720135, n.4 (Tex. App.—Houston [1st Dist.] Aug. 30, 2022, no pet.) ........................................................... 5, 13

Phillips v. Boo 2 You, LLC, No. 03-14-00406-CV, 2016 WL 2907971 (Tex. App.—Austin May 13, 2016, no pet.) ........................................................................................ 10

iii

Star Houston, Inc. v. Volvo Cars of N. Am., LLC, 673 S.W.3d 644 (Tex. App.—Austin 2023, pet. denied) ...................... 21

Statutes TEX. GOV’T CODE § 2001.146(c) .................................................................. 4 TEX. OCC. CODE § 2301.751(2)(b) ............................................................. 17 TEX. OCC. CODE § 2301.751(a)(2) ......................................................... 5, 12 TEX. OCC. CODE § 2301.751(b) ................................................................. 12 Rules TEX. R. APP. P. 38.1.................................................................................. 10 TEX. R. APP. P. 43.2, 43.3 ......................................................................... 11

iv

TO THE HONORABLE FIFTEENTH COURT OF APPEALS:

Cross-Appellant Mazda Motor of North America, Inc. a/k/a Mazda Motor of America, Inc. (“Mazda”), respectfully files this response to Appellant’s Motion to Strike or Disregard the Merits Portions of its Cross-Appellant’s Brief (the “Motion”).

INTRODUCTION

This case arises from World Car North’s misconduct: (1) its reckless and dangerous failure to service defective Takata airbags, and (2) its misrepresentation that it had performed that work when it had not. CR 95, 135-36. Mazda discovered this misconduct almost seven years ago, in April 2018.

This misconduct resulted in a January 6, 2022, administrative decision authorizing the termination of World Car North’s Mazda franchise. CR 85. The substantial evidence of misconduct compelled the ALJ to rule that World Car North’s employee “contributed to a significant risk of harm over a period of time by falsely reporting Takata airbag recall work as having been completed, and that its management was “extremely slow to take the issue seriously.” CR 128-29. “Once informed

by Mazda about the issue, World Car North management was lackadaisical in its attempts to resolve the inflator issue.” CR 135.

Nearly seven years after World Car North’s wrongful conduct was discovered, and three years after the ALJ made these findings, Mazda’s right to terminate the World Car North franchise is still being delayed. The Motion asks the Court to strike or disregard two short legal arguments, covering just seven pages in Mazda’s opening brief. See Mazda Br. at 19-25. These legal arguments are not based on the administrative record, which has not yet been filed in this Court.

Both of Mazda’s legal arguments were contained in briefing that Mazda served 18 months ago, on July 10, 2023. CR 665-70. While World Car North and the Board have never responded to these arguments, there is no reason they should not respond to them now. Mazda is familiar with the maxim that the wheels of justice turn slowly and grind exceedingly fine, but the merits issues in Mazda’s brief are ready for decision, as shown below. It will cause no prejudice to World Car North or the Board to brief these uncomplicated merits issues now. For the following reasons, Mazda respectfully asks the Court to deny the Motion.

BACKGROUND

Mazda does not agree with all the specifics contained in the “Background” section of the Motion and offers the following summary of the most significant differences in the parties’ views.

A. Mazda’s legal arguments are not based on the administrative record.

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All Star Imports, Inc. D/B/A World Car Mazda North// Mazda Motor of North America, Inc. A/K/A Mazda Motor of America, Inc. v. Board of the Texas Department of Motor Vehicles, and Mazda Motor of North America, Inc. A/K/A Mazda Motor of America, Inc.// Cross-Appellee, All Star Imports, Inc. D/B/A World Car Mazda North, (Tex. Ct. App. 2025).

All Star Imports, Inc. D/B/A World Car Mazda North// Mazda Motor of North America, Inc. A/K/A Mazda Motor of America, Inc. v. Board of the Texas Department of Motor Vehicles, and Mazda Motor of North America, Inc. A/K/A Mazda Motor of America, Inc.// Cross-Appellee, All Star Imports, Inc. D/B/A World Car Mazda North (All Star Imports, Inc. D/B/A World Car Mazda North// Mazda Motor of North America, Inc. A/K/A Mazda Motor of America, Inc. v. Board of the Texas Department of Motor Vehicles, and Mazda Motor of North America, Inc. A/K/A Mazda Motor of America, Inc.// Cross-Appellee, All Star Imports, Inc. D/B/A World Car Mazda North) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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