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, Plaintiffs, v. MARK L. SMITH, Defendant.
Cause No. 26-BC04A-0005
The Business Court of Texas, Fourth Division
July 8, 2026
2026 Tex. Bus. 42
MARIALYN BARNARD
FILED IN BUSINESS COURT OF TEXAS BEVERLY CRUMLEY, CLERK ENTERED 7/8/2026
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
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
¶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 Offer4 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
¶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
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.
¶6 “A plea to the jurisdiction may challenge the pleadings, the existence of jurisdictional facts or both.” Martens v. Lamkin Land & Cattle Co., LLC, 2025 Tex. Bus. 32, ¶24, 720 S.W.3d 716, 721 (8th Div. 2025) (citing Tex. Dep‘t of Crim. Just. v. Rangel, 595 S.W.3d 198, 205 (Tex. 2020); Alamo Heights Indep. Sch. Dist. v. Clark, 544 S.W.3d 755, 770 (Tex. 2018)). A plea to the jurisdiction 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.” Bland, 34 S.W.3d at 554. A plaintiff cannot be “required to put on their case simply to establish jurisdiction.” Id.
¶7 In Pradera, this court upheld these well-established principles by reiterating that absent a sham pleading, the allegations in the plaintiff‘s petition control the jurisdictional analysis. Pradera SFR, LLC v. Am. Housing Ventures, LLC, 2026 Tex. Bus. 25, ¶22, 2026 WL 1326748, at *4 (4th Div. 2026).
¶8 Smith‘s plea to the jurisdiction rests on the premise that because Plaintiffs’ petition does not quantify damages or identify “a single dollar of loss,” Plaintiffs have not adequately pled a case or controversy. This court is of the opinion that the premise confuses two different issues: (1) whether Plaintiffs can ultimately prove damages, and the dollar amount of those potential damages, which is a merits question, and (2) whether Plaintiffs have alleged a concrete, particularized injury traceable to Defendant‘s conduct, which is, in this case, the jurisdictional question. See Heckman v. Williamson Cnty., 369 S.W.3d 137, 154–55 (Tex. 2012).
¶10 With that framing in place, each challenged count survives the jurisdictional requirement to allege an injury.
¶11 As stated earlier, in Count One, Kampmann seeks a declaratory judgment. Under Texas law, a declaratory judgment requires, “a real and substantial controversy involving genuine conflict of tangible interests and not merely a theoretical dispute,” that is a justiciable controversy that the declarations sought will resolve. Bonham State Bank v. Beadle, 907 S.W.2d 465, 467 (Tex. 1995) (quoting Bexar–Medina–Atascosa Counties Water Control & Improvement Dist. No. 1 v. Medina Lake Protection Ass‘n, 640 S.W.2d 778, 779–80 (Tex.App.—San Antonio 1982, writ ref‘d n.r.e.)).
¶12 Smith argues in his plea to the jurisdiction that no controversy exists as to the MS Offer because Kampmann expressly declined the offer, no transaction was closed,
¶13 Kampmann‘s April 4, 2026, express rejection of the MS Offer is not the controversy in this case, but rather it is the Parties’ competing construction of the terms the MS Offer was made under. See Sw. Elec. Power Co. v. Lynch, 595 S.W.3d 678 (Tex. 2020) (holding a dispute over the scope of easements was justiciable and constituted a live controversy due to “divergent interpretations” of the instrument.)
¶14 The Plaintiffs’ pleadings present a disagreement over whether the MS Offer complied (i) with Section 9.5 of the MS GP Company Agreement, (ii) with Sections 9.8 of the MS DS Limited Partnership Agreement and MS RE Limited Partnership Agreement, and (iii) with Sections 7.2 of the MS DS Limited Partnership Agreement and MS RE Limited Partnership Agreement. Smith argues, as an affirmative defense in his original answer, that he “complied with the MS GP Company Agreement‘s buy-sell provision.” His reading of the agreement is clearly a divergent interpretation of the agreement‘s terms. Additionally,
¶15 That a declaratory action under the Uniform Declaratory Judgment Act (UDJA) is “often brought with an eye to future harm” does not make it unripe. Lynch, 595 S.W.3d at 685. Therefore, as to Count One, the Parties’ competing construction of the terms present a justiciable controversy in this case.
¶16 As for Counts Two and Three, in which Kampmann alleges breach of contract due to Smith‘s breach of the MS GP Company Agreement, standing requires that a plaintiff be personally injured by a “concrete and particularized” injury that is “actual or imminent, not hypothetical.” Heckman, 369 S.W.3d at 155 (quoting DaimlerChrysler Corp. v. Inman, 252 S.W.3d 299, 304–05 (Tex. 2008)).
¶17 The Plaintiffs’ petition alleges, in part, (i) that the MS Offer deprived Kampmann of her contractual right to receive a corresponding option to sell her interest in MS GP at the net book value, (ii) that Smith‘s undisclosed Side Deal with Carvara deprived Plaintiffs of the benefit of the contractual offer process and protections set out in Sections 7.2 and 9.8 of the MS DS Limited Partnership Agreement and MS RE Limited Partnership Agreement, (iii) that Smith‘s unilateral appointment of a “Platform Manager” at a separate dealership diverted personnel from the Toyota Hernando dealership of its General Manager and created cross-entity liability exposure for MS DS LP, and (iv) that Smith‘s allocation of approximately $200,000 in personal legal fees to three dealerships, including Toyota
¶18 In his plea to the jurisdiction, Smith argues that as for the appointment of the Platform Manager, the petition only alleges a potential risk and further erosion of trust. The court is of the opinion that the petition alleges more than that, including exposure to cross-entity liability. As for the legal-fee charges, Smith states that because the accountant found the error and reversed it, “[w]here the alleged harm has already been remedied, no live controversy remains for this Court to address.”
¶19 However, the petition alleges that after the accountant reversed the charges and recorded a receivable due from Smith, he contested the reclassification of the charges and, through his attorney, asserted that he had the authority to expense the charges as the sole manager of MS GP. It is therefore unclear whether the dispute remains unresolved and whether the accountant‘s reversal of the charges fully redressed the alleged injury. Whatever the case, it is the existence of the injury, not proof of its magnitude, that is required to establish jurisdiction. See Heckman, 369 S.W.3d at 155.
¶20 The above are concrete and particularized injuries alleged by the Plaintiffs that are traceable to the Defendant‘s conduct. Whether these alleged injuries ripen into recoverable damages is a merits question. Bland, 34 S.W.3d at 554 (noting “[a] plea to the jurisdiction cannot be used to require the plaintiff to prove the damages to which he is entitled in order to show that they exceed the court‘s jurisdictional limits.“).
¶21 In this case, even if the challenged counts suffered a pleading deficiency, the remedy sought by Smith would not be available under Texas law. Dismissal without leave
B. Plea in Abatement
¶22 A plea in abatement points the court to the dominant-jurisdiction question. That is whether two courts have concurrent jurisdiction over “inherently intertwined issues.” Martens, 2025 Tex. Bus. 32, ¶ 27, 720 S.W.3d 716, 721 (8th Div. 2025) (quoting In re Puig, 351 S.W.3d 301, 305 (Tex. 2011)). The threshold question is “whether there is an inherent interrelation between the subject matter of the two pending lawsuits that triggers the dominant-jurisdiction question.” In re J.B. Hunt Transp., Inc., 492 S.W.3d 287, 292 (Tex. 2016). If there is no such interrelationship, both suits may proceed. Id. If there is, the court in which suit is first filed ordinarily acquires
¶23 Defendant‘s plea in abatement fails for two reasons. First, the lawsuits are not inherently interrelated. Second, the Kendall County district court could not acquire dominant jurisdiction over the claims that are at the heart of this case.
¶24 Smith‘s strongest argument in his verified plea in abatement that the present case and the Kendall County Suits are inherently interrelated points to the overlap between Count One‘s request for a declaration that the Corporate Opportunity provision is unenforceable and that PAG GP and PAM LP must be dissolved, and the Severed Suit‘s effort to enforce the same Corporate Opportunity provision. The court examined this closely. However, “not all related cases are inherently interrelated,” Martens, 2025 Tex. Bus. 32, ¶ 43.
¶25 At the center of this action is the dissolution and winding up of PAG GP and PAM LP. At the center of the Kendall County Suits is something else entirely. The Bavarian Suit does not involve the MS entities at all; rather, it primarily concerns the interference with the entity‘s shared-services employees. The Severed Suit primarily concerns Kampmann‘s alleged formation of a competing business and diversion of opportunities and assets.
¶26 The logical-relationship test asks whether the same facts are significant in both lawsuits. A lawsuit that turns on the employee interference (the Bavarian Suit) and competitive diversion (the Severed Suit) does not arise from the same facts as a suit that turns on the MS Offer, the Side Deal, the Platform Manager appointment, the legal-fee
¶27 First, the MS Offer itself postdates the Tarrant County jury verdict and was not a part of an earlier pleading. Second, the dissolution claim and other claims related to the MS Entities do not arise from the transaction or occurrence underlying the Kendall County Suits. Third, as will be discussed in more detail below, Count Four‘s dissolution claim could not have been brought as a counterclaim in the Kendall County Suits because those lawsuits are in a court that lacks the authority to grant those dissolution claims.
¶28 The differences in parties, rights, alleged wrongs, and requested relief mirror those that defeated the dominant jurisdiction in Martens. In that case, as in this case, the same facts were not “significant and logically relevant to both claims.” Martens, 2025 Tex. Bus. 32, ¶50.
¶29 There is a second independent reason that Smith‘s plea in abatement fails.
¶31 Smith further argues that even if abatement is not mandatory in this case, the court should abate as a matter of discretion for reasons of comity, convenience, and orderly procedure.
¶32 The Legislature conferred original jurisdiction on this court over the claims Plaintiffs assert in this case, and did not grant the court authority to decline that original subject-matter jurisdiction. Chaudhry v. Stillwater Capital Investments, LLC, 2025 Tex. Bus. 31, ¶94, 721 S.W.3d 230, 246 (1st Div. 2025). As Chaundry explained, although the
¶33 It is the opinion of this court that the
¶34 As for Smith‘s comity argument, he contends in his reply to his verified plea in abatement that dissolving PAG GP and PAM LP will essentially extinguish the claims he is pursuing against Kampmann in the other ongoing lawsuits and may result in conflicting judgments. The court disagrees, because a terminated entity continues to exist for the purposes of prosecuting and defending pending litigation. See
C. Alternative Motion to Transfer
¶35 In the alternative to abatement, Smith moves to transfer this action to Kendall County under
¶36 This alternative motion fails primarily because
CONCLUSION
¶37 Accordingly, having considered the pleas and motions, any responses, replies, and arguments of counsel, the court holds that Plaintiffs have invoked the court‘s subject-matter jurisdiction and therefore denies Defendant‘s plea to the jurisdiction. Additionally, the court finds that the Kendall County Suits are not inherently interrelated with this action and that the Kendall County district court could not be vested with dominant jurisdiction over the present claims and therefore denies Defendant‘s plea in abatement. Lastly, the court holds that Defendant Smith has shown no basis to transfer the action and therefore Defendant‘s alternative motion to transfer is denied.
It is therefore ORDERED that:
- Defendant Mark L. Smith‘s Plea to the Jurisdiction is DENIED as to Count One (in part), Count Two, and Count Three.
- Defendant Mark L. Smith‘s Verified Plea in Abatement is DENIED.
- Defendant Mark L. Smith‘s alternative Motion to Transfer is DENIED.
In all other respects not expressly granted, the requested relief is DENIED. This case will proceed on the court‘s docket.
SO ORDERED.
MARIALYN BARNARD
Judge of the Texas Business Court, Fourth Division
SIGNED ON: July 8, 2026
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Case Contacts
| Name | BarNumber | TimestampSubmitted | Status | |
|---|---|---|---|---|
| Julia Mann | jmann@jw.com | 7/8/2026 1:16:45 PM | SENT | |
| Stephen Calhoun | scalhoun@jw.com | 7/8/2026 1:16:45 PM | SENT | |
| David Evans | 24032163 | david@dmeacl.com | 7/8/2026 1:16:45 PM | SENT |
| Kenneth Meixelsperger | 24031596 | kmeixelsperger@bellnunnally.com | 7/8/2026 1:16:45 PM | SENT |
| NeKeita Summerville | nsummerville@bellnunnally.com | 7/8/2026 1:16:45 PM | SENT | |
| Carey Edwards | cledwards@jw.com | 7/8/2026 1:16:45 PM | SENT | |
| Dyana Mardon | dmardon@jw.com | 7/8/2026 1:16:45 PM | SENT | |
| Brittany Longoria | bklongoria@jw.com | 7/8/2026 1:16:45 PM | SENT | |
| Naomie Kweyu | NKweyu@bellnunnally.com | 7/8/2026 1:16:45 PM | SENT | |
| Mary Smith | msmith@bellnunnally.com | 7/8/2026 1:16:45 PM | SENT | |
| John Guild | jguild@bellnunnally.com | 7/8/2026 1:16:45 PM | SENT | |
| Greg Nieman | gnieman@bellnunnally.com | 7/8/2026 1:16:45 PM | SENT | |
| Erica Hyman | ehyman@bellnunnally.com | 7/8/2026 1:16:45 PM | SENT | |
| Tatum Gonzales | tgonzales@bellnunnally.com | 7/8/2026 1:16:45 PM | SENT |
