Texas VW Dealer Seeks $1 Million Verdict in Service Contract Mailer Suit
A federal judge will determine the amount owed by Autoplex Extended Services (div. Motor Vehicle Services) to Orr Volkswagen of Texarkana (Texas) for the unauthorized use of the dealership’s name in mailers advertising Autoplex vehicle service contracts.
Orr Auto Inc. sued Autoplex in the U.S. District for the Eastern District of Texas in February 2024. Plaintiff’s attorneys have asked for at least $1,070,000 in damages based on sales attributable to the use of Orr VW’s name, suggesting a 250-mile radius.
In a sample mailer entered into evidence, “Orr Volkswagen of Texarkana” appears prominently beneath “Suggested Repair Facilities to Choose From” in smaller, lighter type. The recipient is urged to call an 866 number by a specific date and warned, “By neglecting to replace your coverage, you will be at risk of being financially liable for any and all repairs after your factory warranty expires. … This will be our only attempt to contact you about your expiring factory warranty.”
A TXK Today review of court filings indicates the defendant may not have been aware of the lawsuit in time to properly contest it. “The questions left for trial are how much Autoplex owes and whether it should be permanently barred from using the Orr name. The court ruled against the company on liability in November 2024 after it failed to respond to the lawsuit.”
