True Auto is a national supplier of extended vehicle warranty/service contracts, headquartered in Fort Worth, Texas. As typical in the vehicle service contract industry, True Auto’s marketing program includes advertisements sent directly to prospective consumers to educate them on True Auto’s vehicle service contracts. The State of Georgia filed suit against True Auto, alleging that True Auto’s direct mail pieces were defrauding consumers. The State of Georgia sought broad discovery, including asking for every recorded phone call True Auto had with Georgia consumers.
Polsinelli attorneys William Hill and Alex Bartko from the firm’s Commercial Litigation and Intellectual Property Litigation practices worked together to develop a legal strategy hinging on two points: denial that True Auto’s mailers were fraudulent, and dispute of whether Georgia was entitled to obtain such broad discovery. Attorneys collaborated across practices and geographic offices to coordinate research, discovery, and prospective approach to the litigation.
On June 29, the Superior Court of Fulton County, Georgia issued an order denying almost all of Georgia’s claims, and denied Georgia’s motion to compel discovery of the recordings. This matter is one of the few times in the industry that state regulators have been challenged in their suits against vehicle service contract sellers, giving this case national significance.
The result in its favor allowed True Auto to continue its lawful marketing practices, and halted the state investigation into its business practices. Polsinelli’s depth in the niche area of the vehicle service contract industry was critical to this success.
Polsinelli is proud of the results we obtain for our clients, but you should know that past results do not guarantee future results; that every case is different and must be judged on its own merits; and that the choice of a lawyer is an important decision and should not be based solely upon advertisements. Polsinelli PC. Polsinelli LLP in California.