El Paso Times Reports on Lawsuit Against Chrysler Brought by Texas Dealership Owner
On August 9, 2021, the El Paso Times published a front-page article reporting that Brewer client Richard C. Poe II has sued Chrysler, as he fights for control of his Texas dealerships.
The article reported that in a lawsuit filed in federal court in Michigan, Poe claims that Chrysler conspired with three of his father’s business associates and their appointed dealership manager to prevent Poe from taking control of the dealerships.
William Brewer, counsel to Poe, told the Times, “Chrysler knew Richard was the heir apparent. When Dick Poe passed away, the one with legitimate control was Richard, but Chrysler began refusing to talk to Richard and awarded the dealership (control) to the interlopers."
The Times reported that the lawsuit lists the dealerships “derivatively” as plaintiffs along with Poe.
“Because he has an ownership interest in the dealerships," Poe has the legal right to file the lawsuit on behalf of the dealerships so they can receive restitution from Chrysler, Brewer said in a statement. “Naturally, those in control are critical of his efforts to bring this action" because the lawsuit includes allegations against them, he added.
Brewer News Release - Chrysler Faces Conspiracy and Breach of Contract Claims by Texas Dealership Owner
Dallas, Texas…July 19, 2021 – Brewer, Attorneys & Counselors announced that its client Richard C. Poe II, a fourth generation retail automobile dealer from Texas, filed a federal lawsuit in Michigan against FCA US LLC, formerly known as Chrysler Group LLC (“Chrysler”), accusing the automotive company of joining a conspiracy to damage Poe and unlawfully profiting from doing so.
Poe is from El Paso, Texas, and owns an interest in the oldest Chrysler dealership in Texas through Poe Management, Inc. (“PMI”). Filed on July 19, 2021, in the U.S. District Court for the Eastern District of Michigan, the lawsuit alleges “a betrayal of that historic business relationship between the Poe family and Chrysler” in which Chrysler joined a conspiracy seeking to prevent Poe from controlling the two Chrysler automotive dealerships. Poe’s great grandfather A.B. Poe opened what is now the oldest Chrysler dealership in Texas in 1928.
PMI is the general partner of the two Limited Partnership plaintiffs that own the Poe family dealerships in El Paso: Dick Poe Motors, L.P., a Texas limited partnership that owns the Dick Poe Chrysler/Jeep dealership, and Dick Poe Dodge, L.P., a Texas limited partnership that owns the Dick Poe Dodge/Ram dealership.
The lawsuit alleges that Chrysler joined the conspiracy against Poe by disregarding his legal rights, acting to limit his access to information, allowing a change in management without following proper procedures, and benefitting from the underlying conspiracy. The suit seeks millions in damages.
“As the rightful owner of these longtime Chrysler automotive dealerships, Richard Poe II believes Chrysler’s betrayal cost him millions in damages,” says William A. Brewer III, partner at Brewer, Attorneys & Counselors and counsel to Poe. “Our client believes Chrysler helped effect an improper change of control of the dealerships, so it could benefit from the sale of lucrative ‘reinsurance’ products that were previously underwritten by companies owned by Poe.”
The lawsuit alleges that Anthony E. Bock, a certified public accountant who worked for Poe’s father Dick Poe, abused his fiduciary relationship and joined a conspiracy with the intent to remove Poe from control over the dealerships in order to enrich the corporation. The lawsuit alleges that the others involved in the conspiracy were Karen G. Castro, the former office manager for Dick Poe, Paul O. Sergent, a lawyer who represented the Poes for several years; and Gery A. Reckelbus, a dealership manager.
According to the complaint, 10 days before his death in May 2015, Dick Poe caused an illegal share issuance from PMI that resulted in Richard Poe II becoming a minority shareholder. The lawsuit alleges that within days of Dick Poe’s death, Bock and Castro were named co-independent executors of Dick Poe’s estate in a will that was prepared by Sergent. Bock and Castro subsequently appointed themselves directors of PMI. They then moved to remove Richard Poe II from control over PMI and “unlawfully obtained” Chrysler’s approval of Reckelbus as the “dealer principal” for the dealerships in question.
The lawsuit asserts that Chrysler worked with the conspirators and aided them with their tortious acts by refusing to respond to correspondence from Richard Poe II or his attorneys, refusing to meet with Richard Poe II, and refusing to send notices to Richard Poe II as required by law and by contractual agreements, among other actions.
“Chrysler repeatedly failed and refused to communicate with Richard; failed, on multiple occasions, to respond to voice mails and written communications from Richard and his attorneys; and repeatedly obfuscated its internal decision process and reasons (if any) for denying Richard his rightful place as the successor of the historic, nearly 100-year-old family business,” the complaint alleges.
The lawsuit alleges seven causes of action: a breach of implied covenant of good faith and fair dealing, breach of contract, tortious interference with dealership sales and service agreements, tortious interference with prospective business relationships, fraudulent concealment and fraud by non-disclosure, conversion, and civil conspiracy.
The lawsuit states, “Chrysler chose not to communicate with Richard and answer his questions. Instead, Chrysler cut Richard out of the loop and began engaging in other tortious conduct with the Relevant Non-Party conspirators.” The lawsuit alleges that with the change of control effected by Chrysler, the conspirators stopped purchasing vehicle protection products that were underwritten by Richard Poe II. Instead, defendants funneled those sales to Chrysler.
“Our client aims to hold Chrysler accountable for its alleged role in this scheme, and to also shine a bright light on the company’s business dealings with dealership owners across the country,” Brewer says.
Law360 Reports on LGBT Bias Suit Brought By Bankruptcy Attorney
On March 31, 2021, Law360 reported that Brewer client Trey A. Monsour, who is a prominent bankruptcy attorney, brought a lawsuit in Texas federal court against the law firm Polsinelli PC, accusing the firm of discriminating against him based on his sexual orientation.
Mr. Monsour, a former partner at the firm who is gay, alleged that the firm began discriminating against him after he was hired as a partner in the firm's Houston office in 2017.
William A. Brewer III, who represents Monsour in the suit, said in a statement that his client is suing "to expose what he believes is a troubling pattern of discrimination based on sexual orientation at Polsinelli -- and to champion a call for diversity, tolerance and inclusion in the legal industry."
Law360 reported that according to the lawsuit filing, "Whereas almost all newly hired partners were invariable provided with associate and administrative support, the firm denied Mr. Monsour these basic resources, despite his repeated appeals to management for help. The suit alleges that firm leaders also made "derogatory comments" regarding gay employees and that Monsour felt "isolated and without recourse."
Bloomberg Law Reports on Discrimination Lawsuit Against Polsinelli Law Firm
On March 31, 2021, Bloomberg Law reported on a lawsuit filed by Brewer client Trey Monsour against Polsinelli PC law firm in the U.S. District Court for the Southern District of Texas alleging discrimination.
Bloomberg reported, "Polsinelli PC's push to increase its level of diversity and inclusion was just an empty attempt to shed its reputation as a Midwestern, 'good old boys' law firm, for which its 800-plus workforce pay 'the real-world consequences,' a gay former partner charges in a federal lawsuit in Texas."
Bloomberg reported that Monsour, a former Polsinelli bankruptcy partner who is gay, alleged in the lawsuit that he was treated differently from than other similarly situated non-LGBTQ Polsinelli employees. According to the suit, he was denied the assistance of junior attorneys and administrative support that almost all other newly hired partners received.
Bloomberg reported that the lawsuit charges that Polsinelli's commitment to diversity was "nothing more than a marketing ploy." The lawsuit alleges that he was discriminated against based on his sexual orientation and age.
Brewer News Release - Discrimination Lawsuit Filed Against Polsinelli Law Firm
Dallas, TX… March 31, 2021 – Brewer client Trey A. Monsour, a prominent bankruptcy attorney, filed a lawsuit against the law firm Polsinelli PC alleging discrimination based on sexual orientation.
Mr. Monsour worked as a partner in the Bankruptcy Practice Group in the firm’s Houston office.
Filed in the United States District Court for the Southern District of Texas, Houston Division, on March 30, 2021, the lawsuit alleges discriminatory treatment of Mr. Monsour, an openly gay man, after he became an equity partner in June 2017 in its then newly founded Houston office.
According to the complaint, Mr. Monsour, was quickly subjected to harassment, denied adequate support and resources, and terminated for his sexual orientation.
The lawsuit claims Polsinelli violated the Civil Rights Act of 1964 and Age Discrimination in Employment Act, and committed Fraudulent Inducement, among other claims.
“Mr. Monsour alleges he was discriminated against at Polsinelli law firm because he is gay,” says William A. Brewer III, partner at Brewer, Attorneys & Counselors and counsel to Mr. Monsour. “By any measure, Mr. Monsour is a successful and established attorney. He brings this lawsuit to expose what he believes is a troubling pattern of discrimination based on sexual orientation at Polsinelli – and to champion a call for diversity, tolerance and inclusion in the legal industry.”
According to the complaint, “From the outset, Polsinelli treated Mr. Monsour differently from other similarly situated non-LGBTQ employees. Whereas almost all newly hired partners were invariably provided with associate and administrative support, the firm denied Mr. Monsour these basic resources, despite his repeated appeals to management for help.”
The complaint says, “Polsinelli’s adverse employment actions were made on the basis of Mr. Monsour’s protected age and sexual orientation, a fact starkly punctuated by derogatory comments by firm leaders regarding gay employees that Mr. Monsour overheard firsthand, as well as observations and stories of contemporaneous experiences relayed by Mr. Monsour’s colleagues.”
The complaint alleges that Polsinelli’s self-proclaimed commitment to diversity and inclusion on its website and in marketing materials is a ruse. In fact, diversity numbers remain low at the firm. Mr. Monsour claims that he was induced to join the 800-lawyer firm, based on its public representations and “commitment” to diversity and inclusion.
Joining William A. Brewer III in representing Mr. Monsour is William A. Brewer IV.
New York Law Journal: Judge's Ruling Allows NRA's First Amendment Claims to Proceed
On March 15, 2021, the New York Law Journal reported that a ruling by U.S. District Judge Thomas McAvoy of the Northern District of New York allows the NRA's First Amendment claims against New York state officials to move forward with discovery.
The lawsuit argues that New York state officials violated the NRA's First Amendment rights to express its political views.
“This important decision reaffirms that all public officials, even Gov. Cuomo and Maria Vullo, the former superintendent of the New York State Department of Financial Services, are accountable under the First Amendment,” said William Brewer, counsel to the NRA. “It will allow the NRA to pursue discovery and bring important evidence to light—to expose the communications and coordinated efforts of New York officials and others to harm the NRA and impinge its Constitutional freedoms. The message is clear: the NRA will stand up to those who unlawfully interfere with its Second Amendment advocacy.”
The article reports that Judge McAvoy denied qualified immunity to former New York Department of Financial Services (DFS) superintendent Maria Vullo, noting that "a question of material fact exists" as to whether Vullo "explicitly threatened" an insurer with DFS enforcement unless it broke ties with the NRA.
The Hill Reports on NRA Countersuit Against New York Attorney General Letitia James
On February 24, 2021, The Hill reported that firm client, the National Rifle Association of America (NRA), filed a counter lawsuit against New York Attorney General Letitia James accusing her of "weaponizing" her power against the group.
Filed in the New York Supreme Court, the legal filing states, “James’s threatened, and actual, regulatory and civil reprisals are a blatant and malicious retaliation campaign against the NRA and its constituents based on her disagreement with the content of their speech. This wrongful conduct threatens to destroy the NRA and chill the speech of the NRA, its members, and other constituents, including like-minded groups and their members.”
William Brewer, counsel to the NRA, told The Hill in a statement that the group believes "the NYAG’s actions are retaliatory and reflect ‘selective use’ of regulatory oversight against the Association in violation of constitutional rights."
"The NRA will continue to confront the NYAG’s weaponization of power – to the benefit of the Association, its millions of members, and all who believe in constitutional freedom," Brewer said.
The New York Times Reports the NRA Intends to Reincorporate in Texas
On January 15, 2021, The New York Times reported that the National Rifle Association of America (NRA) plans to reincorporate in Texas and has filed for bankruptcy protection.
According to the report, the NRA is seeking to "circumvent New York's legal jurisdiction" after New York Attorney General Letitia James filed a lawsuit in August 2020 seeking to dissolve the Association.
“Under this plan, the Association wisely seeks protection from New York officials who it believes have illegally weaponized their powers against the NRA and its members,” William A. Brewer III, the NRA’s lead outside attorney, told the Times.
The article notes that NRA CEO and EVP Wayne LaPierre says the plan "represents a pathway to opportunity, growth and progress."
“Obviously, an important part of this plan is ‘dumping New York,’” LaPierre added. “The NRA is pursuing reincorporating in a state that values the contributions of the NRA, celebrates our law-abiding members, and will join us as a partner in upholding constitutional freedom. This is a transformational moment in the history of the NRA.”
Texas Governor Greg Abbott hailed the NRA news, tweeting: “Welcome to Texas – a state that safeguards the Second Amendment.”
Additional information about the NRA's plan to reincorporate in Texas can be found at www.nraforward.org.
Read more from The Times here.