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Austin Capital Collision, LLC// Barbara Pampalone v. Barbara Pampalone// Austin Capital Collision, LLC and Eric Hinojosa
03-15-00447-CV
| Tex. App. | Dec 8, 2016
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Background

  • Barbara Pampalone (lender) alleged she loaned $80,000 (unwritten) to Capital Collision (a general partnership formed by Hinojosa and Erik Pampalone) in 2005; she made payments of $50,000 and $30,000 and mortgaged her home to fund the loan.
  • The partnership (GP) made regular automated payments to Pampalone from accounts referencing "Capital Collision" and "Eric A Hinojosa" for several years; payments totaled 94 regular payments plus a $6,000 final payment.
  • In 2009–2010, Hinojosa formed Austin Capital Collision, LLC (ACC), used the same assumed name, employees, email/address, and continued the same business; bank records show transfers between GP and ACC-related accounts and continued payments to Pampalone through 2013.
  • Pampalone sued ACC and Hinojosa for breach of contract and attorney’s fees, alleging she fully performed and GP/ACC partially performed; parties stipulated damages ($56,758.68) and pretrial attorney’s fees; bench trial resulted in judgment against ACC for damages and attorney’s fees, but not against Hinojosa individually.
  • Trial court found the oral loan enforceable under the partial-performance exception to the statute of frauds and found ACC assumed and partially performed the loan; it discredited Hinojosa’s testimony.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the oral $80,000 loan is barred by statute of frauds or enforceable by partial/full performance Pampalone: she fully performed (funded loan) and GP/ACC partially performed (made payments, emails, amortization schedule) so statute of frauds is inapplicable ACC: oral agreement unwritten; payments not "unequivocally referable" to loan; prior California suit suggests payments were for a different obligation Court: Affirmed—there is legally sufficient evidence of Pampalone’s full performance and GP/ACC’s partial performance; statute of frauds exception applies.
Whether ACC assumed GP’s loan liability and partially performed after formation Pampalone: ACC continued GP’s business, accepted benefits, continued payments, and communicated about the loan (emails, transfers) ACC: payments came from GP-named accounts, not ACC; no clear written assumption; transfers not tied to loan Court: Affirmed—evidence (continued business identity, bank transfers, emails, payments) supports assumption and partial performance by ACC.
Whether attorney’s fees under Tex. Civ. Prac. & Rem. Code §38.001 are recoverable Pampalone: prevailing on contract claim entitles her to fees ACC: if contract unenforceable, fees cannot stand Court: Fees upheld because contract enforceable; award within expedited-action limits.
Whether Hinojosa is individually liable under alter-ego (piercing corporate veil) Pampalone: Hinojosa dominated entities, commingled/emptied assets, so veil should be pierced to hold him personally liable Hinojosa/ACC: no findings/support showing unity, injustice, or actual fraud; trial court did not find these elements Court: Affirmed—trial court did not make or enter findings supporting alter-ego; Pampalone failed to request additional findings and did not carry burden of proof, so no individual liability.

Key Cases Cited

  • Bratcher v. Dozier, 346 S.W.2d 795 (Tex. 1961) (statute of frauds question reviewed as law).
  • City of Keller v. Wilson, 168 S.W.3d 802 (Tex. 2005) (legal-sufficiency standard and appellate review of fact findings).
  • National Prop. Holdings, L.P. v. Westergren, 453 S.W.3d 419 (Tex. 2015) (partial-performance exception requires performance "unequivocally referable" to the oral agreement).
  • Berryman’s S. Fork, Inc. v. J. Baxter Brinkmann Int’l Corp., 418 S.W.3d 172 (Tex. App.—Dallas 2013) (equitable enforcement where denial would amount to virtual fraud; performance must corroborate existence/terms).
  • Exxon Corp. v. Breezevale Ltd., 82 S.W.3d 429 (Tex. App.—Dallas 2002) (discussion of partial-performance exception and reliance/detriment test).
  • Mancorp., Inc. v. Culpepper, 802 S.W.2d 226 (Tex. 1990) (elements for piercing corporate veil/alter ego).
Read the full case

Case Details

Case Name: Austin Capital Collision, LLC// Barbara Pampalone v. Barbara Pampalone// Austin Capital Collision, LLC and Eric Hinojosa
Court Name: Court of Appeals of Texas
Date Published: Dec 8, 2016
Docket Number: 03-15-00447-CV
Court Abbreviation: Tex. App.