BP Automotive, L.P. v. RML Waxahachie Dodge, L.L.C.

448 S.W.3d 562, 2014 WL 4651196
CourtCourt of Appeals of Texas
DecidedSeptember 18, 2014
DocketNos. 01-12-00085-CV, 01-12-00346-CV
StatusPublished
Cited by18 cases

This text of 448 S.W.3d 562 (BP Automotive, L.P. v. RML Waxahachie Dodge, L.L.C.) 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
BP Automotive, L.P. v. RML Waxahachie Dodge, L.L.C., 448 S.W.3d 562, 2014 WL 4651196 (Tex. Ct. App. 2014).

Opinion

OPINION

SHERRY RADACK, Chief Justice.

This appeal arises out of an asset purchase agreement contemplating the sale of a car dealership’s assets. After the sale failed to close, the dealership sued the prospective buyer, alleging breach of contract and several other causes of action. The trial court granted the prospective buyer’s no-evidence and traditional motions for summary judgment, and denied the dealership’s traditional motion for summary judgment. These appeals followed. We affirm .in part and reverse and remand in part.

BACKGROUND

The Parties

Appellant, BP Automotive, L.P. [“Bossier Dodge”] is a Chrysler/Dodge dealership located in Waxahachie, Texas, and its limited partners are W. Randy Pretzer and L. Scott Bossier. BPRE, Ltd. [“BPRE”] is a related entity that owns the real property upon which Bossier Dodge sits.

Appellees, RML Waxahachie Dodge, L.L.C., RLJ-McLarty-Landers Automotive Holdings, L.L.C., RML Waxahachie Ford, L.L.C., and RML Waxahachie GMC, L.L.C. [collectively, “RML”], are purportedly part of RLJ-McLarty-Landers Automotive Group [“RLJ Group”], which owns 23 dealerships and 36 franchises in seven states, including Texas2. Robert Johnson, Thomas “Mack” McLarty, and Steve Lan-ders, Jr. are board members of all of the entities mentioned in this paragraph.

[566]*566Bossier Dodge and RML Waxahachie Dodge Enter an Asset Purchase Agreement

In 2008, Bossier Dodge experienced financial difficulties and began looking for a potential buyer for its assets. On March 20, 2009, after months of negotiations, RML Waxahachie Dodge executed an Asset Purchase Agreement [“the APA”]. The parties agreed that Bossier Dodge would sell its fixtures, inventory, and other dealership assets for $180,100. The APA provided that the “Closing Date shall be on or before April 15, 2009, or as soon thereafter as practical.” The APA also provided that “time is of the essence with respect to this Agreement.” The same date that the APA was signed by the parties, RML also entered a lease with the landowner, BPRE.

In Article 5, titled “Covenants and Additional Agreements,” the parties agreed to “use their respective best efforts at their own expense: (i) to obtain prior to the earlier of the date required (if so required) or the Closing Date, all waivers, permits, licenses, approvals, authorizations, qualifications, orders and consents of all third parties and governmental authorities” required for “the consummation of the transactions contemplated by this Agreement.]” One of the conditions covered by this section was that RML Waxahachie Dodge was required to seek the approval of Chrysler Motors, L.L.C. [“Chrysler”], and between March 25 and March 30, 2009, RML sent the executed APA to Chrysler. According to RML, Chrysler, as a condition of its assent, required the approval of a lender, Chrysler Financial. On April 17, 2009, RML informed Bossier Dodge that Chrysler Financial had not provided the necessary financing and that Paul Hart, RML’s representative, did not know why.

Chrysler Files for Bankruptcy and Bossier Dodge Closes Its Doors

On April 30, 2009, Chrysler declared bankruptcy. As a result of the bankruptcy, Bossier Dodge’s franchise agreement with Chrysler had to be assumed or rejected in Chrysler’s bankruptcy proceedings. The day after Chrysler declared bankruptcy, Bossier Dodge closed its doors and ceased doing business. Two weeks later, on May 15, 2009, Chrysler rejected Bossier Dodge’s franchise agreement and the franchises of 788 other dealerships around the country.

RML Obtains Franchises from Reorganized Chrysler

On July 8, 2009, the reorganized Chrysler awarded RML a franchise for a Chrysler, Dodge, and Jeep dealership in Wax-ahachie. However, Chrysler was not yet qualified to do business in Texas and, as a result, any franchise awarded could not be licensed in Texas. RML’s position is that it could not close the APA because it could not obtain the licenses and approvals necessary to operate a franchise in Waxaha-chie, Texas.

RML Uses Space at the Dealership for a Short While

In July, 2009, Bossier Dodge gave RML permission to use the service department. This allowed some of Bossier Dodge’s employees to continue to work (for RML) after Bossier Dodge closed. The parties dispute whether there was an agreement as to payment for this use. Thereafter, RML placed two technicians in the Wax-ahachie service department, and those technicians performed work for a four-to-five week period. During this period, RML paid for the utilities, maintenance, and other services on the property. RML and Bossier Dodge dispute whether there was an agreement to pay rent during this period.

[567]*567Regarding the issue of rent, it is noteworthy that RML and BPRE entered a second lease on July 20, 2009, which was to “commence three business days after the Lessor (sic) receives' the necessary consents and authorizations from both Chrysler Group LLC and the Texas Motor Vehicle Commission to conduct business on the demised premises as a Chrysler franchised automotive dealer,” which did not occur until March 2010.

Bankruptcy Proceedings Initiated

On November 25, 2009, Bossier Dodge and BPRE filed an Adversary Complaint against RML. See In Re: BPRE, P.P., Debtor, BPRE, L.P. and BP Automotive, L.P. v. RML Waxahachie Dodge, L.L.C., et. ah, Defendants, U.S. Bankruptcy Court, Western District of Texas, Waco Division, Case No. 09-61289, Adv. Case No. 09-06032, filed Nov. 25, 2009. On February 2, 2010, the chief bankruptcy judge signed an order dismissing Bossier Dodge as a mis-joined party and dismissing all of its claims without prejudice. BPRE then filed an Amended Adversary Complaint in which it complained of the following (1) breach of the APA, (2) tortious interference with Franchise Agreements, (3) tortious interference with prospective business relations, (4) civil conspiracy, (5) unfair competition by misappropriation, (6) breach of the leasefs], (7) quantum meruit, (8) trespass to real property, and (9) unjust enrichment. BPRE also sought attorney’s fees and exemplary damages.

The Underlying Lawsuit by Bossier Dodge

After being dismissed from the Bankruptcy Proceeding, Bossier Dodge filed the present suit in state court asserting claims of (1) breach of the APA, (2) tortious interference with franchise agreements, (3) tor-tious interference with prospective business relations, (4) unfair competition by misappropriation, (5) quantum meruit, (6) unjust enrichment, (7) fraud, and (8) civil conspiracy. Many of these are essentially the same as those pleaded in the bankruptcy proceedings, the essential difference, of course, being the omission of BPRE’s lease claims.

Proceedings Continue in the Bankruptcy Court

RML moved for partial summary judgment in the bankruptcy court on BPRE’s claim for breach of the APA, which the Bankruptcy Judge, Hon. Ronald B. King, granted because BPRE was not a party to the APA. Judge King also made 29 findings of fact [“the King findings”], many of which concerned the circumstances surrounding the execution of the APA.

The Bankruptcy Proceeding was tried on July 19, 2010, after which the trial judge, the Hon. John C. Akard, entered a Memorandum of Opinion, which also contained findings of fact concerning the circumstances surrounding the formation and performance of the APA [“the Akard findings”].

Free access — add to your briefcase to read the full text and ask questions with AI

Related

GoSecure v. CrowdStrike
2026 Tex. Bus. 13 (Texas Business Court, 2026)
Hector Dominguez v. Marvin Dominguez
Court of Appeals of Texas, 2019
Nat'l Church Residences of Alief, TX v. Harris Cnty. Appraisal Dist.
539 S.W.3d 460 (Court of Appeals of Texas, 2017)
BP Automotive LP v. RML Waxahachie Dodge, LLC
517 S.W.3d 186 (Court of Appeals of Texas, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
448 S.W.3d 562, 2014 WL 4651196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bp-automotive-lp-v-rml-waxahachie-dodge-llc-texapp-2014.