Sherman Simon Enterprises, Inc. v. Lorac Service Corp.
This case before the Texas Supreme Court concerns a deceptive trade practices claim brought by Lorac Service Corporation against Sherman Simon Enterprises, Inc., a Hertz franchisee. Lorac alleged that Sherman Simon Enterprises misrepresented that its automobile rental agreement provided liability insurance coverage and subsequently refused to honor this coverage after an accident involving a Lorac employee. While the trial court and court of appeals found in favor of Lorac, awarding treble damages and attorney's fees, Sherman Simon Enterprises appealed, challenging Lorac's consumer status and the sufficiency of evidence for misrepresentation. The Supreme Court upheld Lorac's qualification as a consumer under the Deceptive Trade Practices Act. However, the court ultimately concluded there was no evidence of misrepresentation, as Sherman Simon Enterprises did provide the promised liability coverage through its insurer, even though the insurer initially refused to defend Lorac. Consequently, the judgment of the court of appeals was reversed, and judgment was rendered in favor of Sherman Simon Enterprises.