Texas Judge Rescinds Car Sale Contract, Awards $24,150

In October 2020, a plaintiff purchased a 2005 Bentley Continental GT from a dealership in Texas for $19,000. During a test drive a month later, the vehicle overheated and stopped functioning within five minutes. The dealership promised to repair the car at no cost but did not return it for nearly two years. The plaintiff claimed the dealership also swindled an additional $5,150 and failed to provide proper registration and title. A complaint to the Texas Department of Motor Vehicles revealed multiple violations by the dealership, including failures to remit sales tax, apply for registration/title, and keep complete records.

The dealership asserted that the vehicle was sold "As Is" with no warranty and that the plaintiff had acknowledged a "salvage flood title." It also claimed the plaintiff had already recovered funds from a separate repair-related lawsuit and raised various defenses, including impossibility and frustration of performance. The case experienced a brief procedural complication when an initial default judgment for the plaintiff was vacated after the court granted the defendant's motion to set it aside.

After a bench trial, the court entered a Final Judgment in October 2023, rescinding the contract between the parties. The plaintiff was awarded $24,150, which included the original purchase price and the claimed additional funds. The dealership filed a motion to modify the judgment, arguing insufficient evidence and that rescission was not requested, but the court authorized the payment to the plaintiff.