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Cedar Spring Enterprises LLC D/B/A Elite Cars Group v. Auction Credit Enterprises, LLC ("ACE") as Assignee of Wesley Travis Free
14-19-01003-CV
| Tex. App. | Nov 4, 2021
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Background

  • ACE (floor planner) advanced funds to Elite (car dealer) under a floor‑plan agreement that gave ACE a security interest in inventory; upon retail sale Elite was to remit payment to ACE and ACE to release the title.
  • On June 14, 2016 Wesley Travis Free paid Elite $15,200 for a 2009 Cadillac, took possession, and Elite issued temporary tags; Elite claims it paid ACE amounts toward the car, ACE contends the account remained unpaid.
  • Elite requested ACE release title in Sept. 2016; ACE refused and later claimed ~$12,000 remained due. Free retained possession throughout and later obtained title/registration.
  • In March 2018 ACE and Free executed an Agreement and Assignment of Claim: ACE agreed to release title to Free and Free assigned his claims against Elite to ACE (and released ACE from related liability).
  • ACE sued Elite for breach of contract; after a bench trial the court awarded ACE $15,200 in damages plus $2,000 attorney’s fees. Elite appealed, arguing the damages award lacked evidentiary support and that the assignment was void.
  • The Fourteenth Court of Appeals reversed and rendered a take‑nothing judgment in favor of Elite, concluding the evidence was legally insufficient to support damages and vacating attorney’s fees.

Issues

Issue Plaintiff's Argument (ACE) Defendant's Argument (Elite) Held
Whether evidence supported $15,200 damages Breach deprived Free of title; measure may be benefit‑of‑the‑bargain (purchase price) or loss‑of‑use Free suffered no compensable loss: he had possession, temporary tags, and ultimately received title; Elite paid taxes Court: Evidence legally insufficient for loss‑of‑use and for benefit‑of‑the‑bargain; reversed and rendered for Elite
Whether Free's assignment to ACE was void (e.g., ACE a joint‑tortfeasor) Assignment valid; ACE proceeded as assignee Assignment void because ACE was a joint‑tortfeasor (argument) Court did not decide this issue after resolving damages; remanded/decided no need to reach it and rendered take‑nothing
Entitlement to attorney's fees Sought fees as prevailing party Opposed because no recoverable damages Court: No attorney’s fees because ACE recovered nothing (American Rule/MBM)

Key Cases Cited

  • City of Keller v. Wilson, 168 S.W.3d 802 (Tex. 2005) (standard for legal‑sufficiency review)
  • J & D Towing, LLC v. Am. Alternative Ins. Corp., 478 S.W.3d 649 (Tex. 2016) (loss‑of‑use damages described)
  • Yazdani‑Beioky v. Sharifan, 550 S.W.3d 808 (Tex. App.—Houston [14th Dist.] 2018) (benefit‑of‑the‑bargain damages standard)
  • Clear Lake City Water Auth. v. Friendswood Dev. Co., Ltd., 344 S.W.3d 514 (Tex. App.—Houston [14th Dist.] 2011) (purpose of benefit‑of‑the‑bargain measure)
  • MBM Fin. Corp. v. Woodlands Operating Co., L.P., 292 S.W.3d 660 (Tex. 2009) (attorney’s‑fee recovery requires a substantive recovery)
  • Sacks v. Hall, 481 S.W.3d 238 (Tex. App.—Houston [1st Dist.] 2015) (discussing benefit‑of‑the‑bargain measure)
Read the full case

Case Details

Case Name: Cedar Spring Enterprises LLC D/B/A Elite Cars Group v. Auction Credit Enterprises, LLC ("ACE") as Assignee of Wesley Travis Free
Court Name: Court of Appeals of Texas
Date Published: Nov 4, 2021
Docket Number: 14-19-01003-CV
Court Abbreviation: Tex. App.