![]() ![]() In its original petition, Mid-Atlantic alleged that after it had purchased eighty-two automobile installment sales contracts under the Agreement and was holding titles to the automobiles to protect its security interests, MSMTBR applied for and received substitute titles to fifty-one of the automobiles. And it further authorized Mid-Atlantic to 3 have, use and take all lawful ways and means in or otherwise for the recovery thereon, by attachment, distress or otherwise, and to compromise and agree for the same, and in name to make, seal and deliver all instruments necessary for said premises: to bargain, contract for, agree, receive and take possession of all security. In connection with the Agreement, MSMTBR also granted Mid-Atlantic a Limited Power of Attorney, authorizing Mid-Atlantic as our true and lawful attorneys for us and in our names, place and stead, and for our use and benefit, to ask, demand, sue for, recover, collect and receive all sums of money, debts, due accounts, interest, and demands whatsoever as are now or shall hereafter become due, owing, payable or belonging to solely with respect to the Contracts specifically set forth in Schedule A. And after the transaction was processed by the Texas Department of Motor Vehicles ( DMV ), MSMTBR was obligated to deliver the original title to MidAtlantic to hold the title. Once Mid-Atlantic purchased an installment sales contract, all rights under the Contract immediately transferred to Mid-Atlantic, and it became the lawful owner thereof, free and clear of all claims, liens or encumbrances whatsoever. ![]() If the consumer defaulted on the contract after the sixth month, the Agreement provided for a Bonus Pool to be used to satisfy expenses and deficiency balances at Mid-Atlantic s discretion. If the consumer defaulted on the contract within six months, MidAtlantic could recover its losses by repossessing and selling the automobiles or demanding that MSMTBR repurchase the installment sales contract. 2 additional payments to MSMTBR as the consumer performed on the installment sales contract. MidAtlantic would make an initial cash advance to MSMTBR and then make 1 See TEX. If Mid-Atlantic approved the contract, MSMTBR and Mid-Atlantic would then agree to a purchase price, through a Decision Callback, and Mid-Atlantic would buy the contract. Pursuant to the Agreement, MSMTBR, after executing an automobile installment sales contract with a customer, would present the contract to Mid-Atlantic for consideration. ![]() Background On October 30, 2009, Mid-Atlantic, a finance company in the business of purchasing installment sales contracts from automobile dealers, entered into a Flex Line Program Agreement (the Agreement ) with MSMTBR to purchase certain automobile installment sales contracts. and Russell David Balusek (collectively, MSMTBR ), challenge the trial court s rendition of summary judgment in favor of Mid-Atlantic in its suit against MSMTBR for conversion and recovery under the Texas Theft Liability Act ( TLA ).1 In three issues, MSMTBR contends that the trial court erred in granting Mid-Atlantic summary judgment on its conversion and TLA claims. We deny the motion for rehearing, but withdraw our opinion and judgment of Maand issue the following opinion and a new judgment in their stead. ![]() ( Mid-Atlantic ), has filed a motion for rehearing of our Maopinion and judgment. 2011-30123 MEMORANDUM OPINION ON REHEARING Appellee, Mid-Atlantic Finance Co., Inc. MID-ATLANTIC FINANCE CO., INC., Appellee On Appeal from the 190th District Court Harris County, Texas Trial Court Case No. Opinion issued JIn The Court of Appeals For The First District of Texas NO. ![]()
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