Reinsurance Misappropriation Action Should Proceed, Texas Magistrate Judge Recommends

AUSTIN, Texas — A Texas federal magistrate judge has recommended that an action involving the alleged misappropriation of reinsurance funds by the administrator of vehicle service contracts be allowed to proceed.

On Jan. 24, Magistrate Judge Andrew W. Austin of the U.S. District Court for the Western District of Texas found the claims of breach of contract, breach of fiduciary duty, conversion, and money had and received were adequately pleaded.

Hoffpauir Inc., Jim Hoffpauir Inc. and Lee Hoffpauir Inc. are Texas corporations that operate several vehicle dealerships. In conjunction with their vehicle sales, Hoffpauir also offer their customers vehicle service …