A Fort Worth jury has ordered Principle Auto co‑founder Abigail Kampmann to pay roughly $20.2 million to her former partner, Mark L. Smith, after finding she cut him out of real‑estate deals tied to the group’s San Antonio luxury dealerships. The verdict rips open what lawyers have called a “business divorce” inside the locally based auto group and throws the future ownership and operations of its IH‑10 showrooms into question. Kampmann has said she will appeal as both sides continue trying to untangle the businesses they built together.
Verdict in Tarrant County
The jury returned its award after a roughly two‑and‑a‑half‑week trial and a little more than two hours of deliberations, according to The Texas Lawbook. Jurors found Kampmann liable for breach of contract and breach of fiduciary duty and awarded approximately $20.283 million tied to the largest land purchases at issue.
What Jurors Were Asked to Decide
The jury was asked whether three real‑estate purchases around San Antonio, identified in the charge as Tessi (about 10.8 acres), Pecan Parkway (about 8 acres) and Bristol Green (about 4 acres), qualified as “corporate opportunities” that the partnership agreement required Kampmann to disclose to Smith. Those instructions and detailed questions on waiver, ratification and damages appear in the court’s charge and related filings made public in the case. Court documents.
The Real‑Estate Deals and the Numbers
Plaintiffs told jurors that Kampmann’s companies bought roughly 23 acres at and around 15507 Interstate 10 West and then leased those parcels to the BMW and MINI stores for about $635,000 a month, deals they say were concealed from Smith. The dealerships were originally estimated at roughly $25 million to build in 2017 filings, finished about $15 million over budget and were supported by a 2018 Wells Fargo loan that property records show was later paid off, the San Antonio Express‑News reported.
Lawyers Call It a Business Divorce
Smith’s trial team argued that the partnership agreement required disclosure of new dealership‑related real‑estate opportunities and pushed jurors to “make Smith whole,” saying the verdict confirmed their reading of the contract. The Dallas firm that led Smith’s trial effort described the outcome as a key step toward a final separation of the partners and signaled it expects follow‑on litigation as their companies are fully untangled. Bell Nunnally.
More Suits Remain and Legal Stakes Are High
The courtroom drama is not over. Other lawsuits tied to the group remain active, including a planned August trial over the Volkswagen dealership and a claim that Smith failed to satisfy about $600,000 in capital calls, a dispute plaintiffs say could put that franchise contract in jeopardy, according to the San Antonio Express‑News. Smith has also sought injunctions and an accounting aimed at preventing the Principle Auto name and certain assets from being used outside particular entities while the litigation plays out.
What This Means for San Antonio
The contested parcels are home to BMW of San Antonio, listed at 15507 W IH‑10, and the IH‑10 showrooms that opened in late 2018 as a major local investment. The dealership’s own website lists the IH‑10 address, and coverage at the time of the opening described the campus as one of the largest BMW/MINI facilities in the country. BMW of San Antonio and The AutoChannel.
