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

CourtCourt of Appeals of Texas
DecidedJanuary 9, 2025
Docket15-24-00017-CV
StatusPublished

This text of 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) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
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).

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.

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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, Counsel Stack Legal Research, https://law.counselstack.com/opinion/all-star-imports-inc-dba-world-car-mazda-north-mazda-motor-of-north-texapp-2025.