Kampmann v. Smith

CourtTexas Business Court
DecidedJuly 8, 2026
Docket26-BC04A-0005
StatusPublished

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

Bluebook
Kampmann v. Smith, (Tex. Super. Ct. 2026).

Opinion

FILED IN BUSINESS COURT OF TEXAS BEVERLY CRUMLEY, CLERK ENTERED 7/8/2026 2026 Tex. Bus. 42

The Business Court of Texas, Fourth Division

ABIGAIL G. KAMPMANN, § INDIVIDUALLY AND § DERIVATIVELY ON BEHALF OF § PRINCIPLE AUTO GROUP, LLC, § PRINCIPLE AUTO § MANAGEMENT, LTD, PRINCIPLE § MISSISSIPPI, LTD., MLSAGKARC § PROPERTIES, LTD., and § PRINCIPLE AUTO MISSISSIPPI, § LLC, § Cause No. 26-BC04A-0005 § Plaintiffs, § § v. § MARK L. SMITH, § § Defendant. § § ═══════════════════════════════════════ OPINION & ORDER ═══════════════════════════════════════

Syllabus ∗ This case presents several issues: (i) whether this court has subject-matter jurisdiction over this action; if so, (ii) whether an earlier filed lawsuit between some of the same parties

∗ NOTE: The syllabus was created by court staff and is provided for the convenience of the reader. It is not part of the Court’s opinion, does not constitute the Court’s official description or statement, and should not be relied upon as legal authority. requires abatement of this action under the doctrine of dominant jurisdiction, and (iii) whether, at this court’s discretion, the case should be transferred to a different county.

OPINION ¶1 Before the court is (1) Defendant Mark L. Smith’s Plea to the Jurisdiction

challenging the court’s authority to hear this case, (2) Plaintiffs’ Response in Opposition

to Defendant’s Plea to the Jurisdiction, (3) Defendant Mark L. Smith’s Reply to Plea to the

Jurisdiction, (4) Defendant Mark L. Smith’s Verified Plea in Abatement, or Alternatively,

Motion to Transfer, (5) Plaintiffs’ Response to Defendant’s Verified Plea in Abatement, or

Alternatively, Motion to Transfer, and (6) Defendant Mark L. Smith’s Reply to Verified

Plea in Abatement, or Alternatively, Motion to Transfer. The court held a hearing on the

matter on June 4, 2026. After considering the Parties’ arguments, the court denies

Defendant’s requests for the reasons set out below.

BACKGROUND

¶2 This case arises out of the breakdown of a decade-long business partnership

between Plaintiff Abigail G. Kampmann (“Kampmann”) and Defendant Mark L. Smith

(“Smith”) 1. In 2014, Kampmann and Smith formed Principle Auto Group, LLC (“PAG

1 The Parties’ business partnership breakdown has generated litigation in several other forums. First, on August 1, 2024, Smith sued Kampmann in the 342nd Judicial District Court of Tarrant County for breach of fiduciary duty and breach of contract (the “Original Lawsuit”). Second, on October 8, 2025, Bavarian Imports, Ltd. (an entity owned by Kampmann) sued Smith in Kendall County over Smith’s alleged interference with shared-services employees (the “Bavarian Suit”). Third, on December 2, 2025, the Tarrant County court presiding over the Original Lawsuit severed Smith’s claims for declaratory judgment and injunctive relief and transferred those claims to Kendall County (the “Severed Suit,” and together with the Bavarian Suit, the “Kendall County Suits”). The Original Lawsuit was tried in 2026 by a jury, and a verdict was returned in Smith’s favor. However, no final judgment has been entered in that case. GP”) 2. PAG GP is a Texas manager-managed limited liability company, which serves as the

sole general partner of Principle Auto Management, Ltd. (“PAM LP”). PAM LP is a Texas

limited partnership which, Plaintiffs allege, was formed with the specific purpose of

managing certain automobile dealerships 3. Both entities, PAG GP and PAM LP, maintain

their registered office and principal place of business in Bexar County.

¶3 Kampmann filed this action in the Business Court on April 3, 2026. The

Original Petition pleads four counts. In Count One, Kampmann seeks declarations that (i)

it is impossible and/or impractical for both PAG GP and PAM LP to continue with their

respective businesses, (ii) under the PAG GP Company Agreement and PAM LP Limited

Partnership Agreement, an event of termination has occurred, and as a result the entities

must be wound up and dissolved, and (iii) that Smith’s February 5, 2026 MS Offer 4 does

not comply with the requirements of the MS DS Limited Partnership Agreement and MS

RE Limited Partnership Agreement. Count Two alleges that Smith breached the MS GP

2 Kampmann holds a 50.5% interest in PAG GP, and Smith holds a 49.5% interest in the same

entity; both Kampmann and Smith are co-managers of PAG GP. 3 Kampmann holds a 69.95% interest in PAM LP, Smith holds a 29.95% in the same entity,

and PAG GP holds a 0.1% interest as a general partner in PAM LP. 4 Principle Auto Mississippi, LLC (“MS GP”) is a Texas limited liability company with its

principal place of business in Bexar County. Principle Mississippi, LTD (“MS DS LP”) is a Texas limited partnership with its principal place of business in Bexar County. MLSAGKARC Properties, LTD (“MS RE LP”) is a Texas limited partnership with its principal place of business in Bexar County. Kampmann, Smith, and a third partner, Carvara LLC (“Carvara”), are joint owners of MS GP, MS DS LP, and MS RE LP (collectively, the “MS Entities”). The partnership agreements relevant to what Plaintiff Kampmann seeks in Count One are (i) the First Amended and Restated Limited Partnership Agreement of Principle Mississippi, Ltd., dated May 30, 2016 (the “MS DS Limited Partnership Agreement”), and (ii) the Agreement of Limited Partnership of MLSAGKARC Properties, Ltd., dated July 1, 2017 (the “MS RE LP Agreement”). On February 5, 2026, Smith issued a purchase offer to buy out Kampmann's interest in the MS Entities (the “MS Offer”). The purchase offer was made under Section 9.8 of the MS DS Limited Partnership Agreement and Section 9.8 of the MS RE Limited Partnership Agreement and required a response from Kampmann within 60 days. Company Agreement 5 by failing to comply with the terms required by the agreement when

exercising an option to purchase. Count Three alleges that Smith, as the sole manager of

MS GP, breached fiduciary duties owed to the other MS Entities and their members. Count

Four seeks a court-ordered winding-up and termination of the entities, PAG GP and PAM

LP, under Sections 11.314 and 11.054 of the Texas Business Organizations Code.

¶4 Smith does not challenge Count Four. In his Plea to the Jurisdiction, Smith

moves to dismiss Count One in part, Count Two, and Count Three for want of a case or

controversy. In his Plea in Abatement, Smith moves to abate or transfer the entire case in

deference to the Kendall County Suits.

ANALYSIS

A. Plea to the Jurisdiction

¶5 Smith first challenges this court’s power to decide this case through a plea to

the jurisdiction. This court’s jurisdiction is governed by Section 25A.004(b) of the Texas

Government Code. See TEX. GOV’T CODE § 25A.004(d). In addition to the Texas

Government Code, the legal principles governing pleas to the jurisdiction are well

established in Texas. As the Texas Supreme Court has stated:

A plea to the jurisdiction is a dilatory plea, the purpose of which is to defeat a cause of action without regard to whether the claims asserted have merit. The claims may form the context in which a dilatory plea is raised, but the plea should be decided without delving into the merits of the case. The purpose of a dilatory plea is not to force the plaintiffs to preview their case on the merits but to establish a reason why the merits of the plaintiffs’ claims should never be reached.

5 MS GP is the General Partner of and controls MS DS LP and MS RE LP. Bland Indep. Sch. Dist. v. Blue, 34 S.W.3d 547, 554 (Tex.

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Bluebook (online)
Kampmann v. Smith, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kampmann-v-smith-texbizct-2026.