Daimler Truck Financial Services filed a lawsuit in the Texas Business Court against Vanguard National Trailer Corporation in June, alleging fraud and negligent misrepresentation. Vanguard has moved to dismiss the case.
Both companies are incorporated in Delaware. However, Daimler Truck Financial Services’ office is based in Denton County, while Vanguard National Trailer Corporation’s office is in Indianapolis, Indiana.
Daimler brings several claims against Vanguard, which include fraud, negligent misrepresentation and conspiracy.
The complaint filed before Eighth Business Court Judge Jerry Bullard in Denton County is seeking $28 million in damages.
Daimler claims Vanguard provided KAL Trailers with floor plan financing by attempting to retain titles to hundreds of trailers sold and delivered to KAL Trailers on credit. Vanguard then allegedly provided Certification of Origin copies to KAL Trailers with “false, conflicting, and intentionally misleading certifications” that they had transferred the trailers to KAL Trailers.
Daimler alleges it has suffered pecuniary loss, including unrecovered loans to KAL Freight and KAL Trailers, which it says amount to $28 million.
The other defendants named in the complaint are CIMC Reefer Trailer Inc., King Trailer Lease and Rentals LLC, King Country Trailer Service and Parts LLC, Crownfour LLC and Does 1-100.
Vanguard filed its motion to dismiss on July 28, arguing the court lacked general and specific jurisdiction over Vanguard.
The first footnote in the motion reads, “Responsible business entities do not assert false and baseless claims that would constitute actionable business defamation if asserted out of court. Vanguard and VRTI reserve all rights to pursue all available, appropriate legal means to establish that Daimler’s allegations are absolutely false and without evidentiary support, including aggressive discovery of Daimler’s policies and procedures governing the diligence required prior to extending credit, the actual diligence done regarding KAL Freight, the information Daimler knew about KAL Freight, the diligence done by Daimler regarding its other borrowers, the information about this massive loss Daimler provided to its corporate parent, Daimler’s internal investigations into this loss, and every contemporary basis for extending $28,044,548 in credit to a company whose current Chief Restructuring Officer says employed management who are alleged to have committed or presided over significant malfeasance during the time that Daimler extended the $28,044,548.”
Counsel for Daimler did not immediately respond to requests for comment.
White & Case Houston partner Sean Gorman, who is representing Vanguard, declined to comment.
Attorneys for Daimler are Foley & Lardner Dallas partner Robert Slovak, of counsel Stephen McCartin and associate Joseph Harper and Cooksey Toolen Gage Duffy Woog partner Kim Gage.
Attorneys representing the defendants are Amarillo-based Stockard, Johnston, Brown, Netardus, & Doyle attorney James Colley and founding partner John Brown.
The case is Daimler Truck Financial Services USA LLC v. Vanguard National Trailer Corporation, et al., 25-BC08A-0011.