Antitrust Law Daily Wrap Up, ANTITRUST—N.D. Tex.: Auto repossession companies fail to state monopolization claim, (Mar 9, 2016)

By Greg Hammond, J.D.

Various automotive repossession companies failed to state monopolization and Texas Deceptive Trade Practices-Consumer Protection Act (DTPA) counterclaims against a license plate data and analytics company, arising from a breach of license agreement dispute. The federal district court in Fort Worth, Texas, consequently granted the analytics company’s motion for summary judgment with regard to those counterclaims (Digital Recognition Network, Inc. v. Accurate Adjustments, Inc., March 8, 2016, McBryde, J.).

Digital Recognition Network, Inc.—a license plate data and analytics company—filed a breach of contract action against Accurate Adjustments, Inc. and other auto repossession companies. The defendants filed counterclaims, alleging monopolization and violations of the DTPA. The action was before the court on Digital’s motion for summary judgment in favor of its breach of contract claim and against the defendants’ counterclaims.

Monopolization. The defendants relied solely on an expert’s report to establish their monopolization counterclaim, according to the court. Finding that the report was not verified and was replete with hearsay, general allegations, and self-serving conclusions that did not present competent summary judgment evidence, the court concluded that the defendants failed to establish the relevant market and Digital’s ability to control prices and exclude competition. Summary judgment was therefore granted in favor of Digital on the antitrust counterclaim.

Deceptive trade practices. Digital also claimed that the DTPA counterclaims were barred by limitations or, alternatively, that the defendants could not establish reliance on any deceptive representation or that Digital engaged in any unconscionable act. Although the DTPA counterclaims were timely, according to the court, the defendants failed to provide any evidence to create a genuine fact issue concerning the substance of their DTPA claims. In particular, the defendants failed to cite any act or practice that took advantage of their lack of knowledge, ability, capacity, or experience to a grossly unfair degree. Moreover, allegations concerning misrepresentation merely demonstrated that Digital may have overpaid in some instances and underpaid in others. The evidence, however, also demonstrated that Digital tried to rectify incorrect payments that were brought to its attention.

The case is No.4:14-CV-903-A.

Attorneys: Cole B. Ramey (Kilpatrick Townsend & Stockton, LLP) for Digital Recognition Network, Inc. Peter M. Spingola (Chapman Spingola, LLP) for Accurate Adjustments, Inc., Coastline Recovery Services, Inc., After Hours Auto Recovery, Inc. and Solid Solutions 24/7, Inc.

Companies: Digital Recognition Network, Inc.; Accurate Adjustments, Inc.; Coastline Recovery Services, Inc.; After Hours Auto Recovery, Inc.; Solid Solutions 24/7, Inc.

Cases: Antitrust ConsumerProtection StateUnfairTradePractices TexasNews