Smith v. Kampmann $20M Verdict: Appeal and Partnership Unwinding

A Tarrant County jury awarded Mark L. Smith roughly $20.2 million on February 2, 2026, delivering the first courtroom resolution in the Smith v. Kampmann verdict that capped a bitter split between the co-founders of Principle Auto Group. The unanimous verdict found that Abigail Kampmann breached both the partners’ company agreement and her fiduciary duty by concealing San Antonio real estate deals tied to their jointly operated dealerships.¹²

What the Jury Decided

The case was tried in January 2026 in the 342nd District Court of Tarrant County before Judge Kimberly Fitzpatrick. The jury found Kampmann liable for failing to disclose a corporate opportunity related to land purchases, and awarded Smith just over $20.2 million. Nearly $20.3 million of that was attributed to the two largest land transactions, offset by a negative figure of about $29,823 on a third purchase that Smith’s counsel suggested was likely tied to below-market rent on a smaller parcel.¹²

The jurors also unanimously rejected each of Kampmann’s affirmative defenses: fraudulent inducement, waiver, and the statute of limitations.² Smith was represented by Dallas firm Bell Nunnally, with a trial team led by partners Kenneth C. Meixelsperger and John F. Guild.³

What the Dispute Was About

Kampmann and Smith formed Principle Auto Group LLC and Principle Auto Management Ltd. in May 2014 after meeting the year before at a Young Presidents’ Organization program at Harvard. Kampmann brought dealership interests inherited from her father, Jack Guenther; Smith joined as an “equal control partner” responsible for managing and growing the business after 25 years at Sewell Automotive Companies.¹

Their company agreement carved out several “Legacy Dealerships” already operating when the partnership formed, including BMW and Mini in San Antonio, Volvo in San Antonio, and Toyota in Memphis. For everything else within the company’s line of business, the agreement required that any new “corporate opportunity” be disclosed to both partners before either pursued it alone.¹

The disclosure clause is what the jury found Kampmann violated. The disputed property is a 23-acre tract at 15507 Interstate 10 West in San Antonio, where the BMW and Mini dealerships operate. Smith alleged Kampmann used a network of shell companies to hide her ownership and control of the land, cutting him out of a corporate opportunity the agreement required her to share. Kampmann fired Smith on February 12, 2024, and by that summer the two were suing each other. Smith’s claims included fraud, civil conspiracy, breach of fiduciary duty, breach of the company agreement, and tortious interference.¹

Appeal and Other Pending Cases

Kampmann intends to appeal. Her attorney, David M. Evans, confirmed in mid-2026 that “an appeal is planned in the near future.”¹

The February verdict resolved only one piece of the fight. At least three other suits remain active:

In Tarrant County, Principal Grapevine Ltd. and Principle Auto of San Antonio LLC allege Smith failed to pay $600,000 in capital calls for the Volkswagen dealership in Grapevine, claiming the shortfall has put the franchise’s contract with Volkswagen of America at risk. Smith has sought dismissal, arguing the entities could not sue him without his consent as co-manager. Trial is set for August 2026.
In Kendall County, Bavarian Imports LLC, owned by Kampmann, sued Smith in October 2024 alleging interference with employee relationships. Smith has asked to transfer the case to Tarrant County.
In a Kendall County case previously severed from the Tarrant County action, Smith is suing Kampmann, Bavarian Imports, and other ventures, seeking an injunction against unauthorized use of the “Principle Auto” name and an accounting of payments he alleges Kampmann diverted. He is also seeking to move this case to Tarrant County.¹

Unwinding the Partnership

The two former partners have started dividing their jointly held franchises. In 2025, Kampmann sold her stake in Principle Infiniti of Boerne to Smith, while Smith sold his interests in Principle Hyundai Boerne and Principle BMW of Corpus Christi to Kampmann. That accounts for three of their five jointly held dealerships.¹

They remain co-owners of Principle Volkswagen Grapevine, Principle Toyota of Hernando, the underlying real estate for all five jointly held dealerships, and the parent entities Principle Auto Group LLC and Principle Auto Management Ltd. Smith has since launched a new venture called Synergy Auto Group.⁴ Smith’s counsel has said the remaining franchises and real estate entities will eventually be separated, but acknowledged the process has a long way to go.¹

1
San Antonio Express-News. Principle Auto BMW Dealership Lawsuit Verdict
2
Texas Lawbook. Jury Awards $20.2M in Dispute Between Business Partners
3
Bell Nunnally. Bell Nunnally Secures $20 Million-Plus Complete Jury Victory in Complex Business Partnership Dispute
4
RocketReach. Mark Smith