IN THE UNITED STATES DISTRICT COURT 

FOR THE WESTERN DISTRICT OF TEXAS 

SAN ANTONIO DIVISION 

SUNBELT RENTALS, INC., 

Plaintiff, 

v. 

VERITAS FUNDING, LLC 

D/B/A VERITA, 

Defendant. 

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CIVIL ACTION NO. 5:20-cv-658

 JURY DEMANDED 

COMPLAINT 

Plaintiff, Sunbelt Rentals, Inc. (“Sunbelt”) files this complaint against Veritas Funding, 

LLC dba Verita (“Veritas”). 

Parties 

1. Plaintiff Sunbelt is a corporation formed under the laws of North Carolina. Its

principal place of business is in South Carolina. 

2. Defendant Veritas is an LLC. Upon information and belief, its only member is a

resident citizen of the State of Texas. 

Jurisdiction 

3. This Court has subject matter jurisdiction over this action pursuant to 28 U.S.C. §

1332 because the matter in controversy exceeds the sum of $75,000.00, exclusive of interest and 

costs, and is between citizens of different states. 

Venue 

4. Venue is proper in this Court because the San Antonio Division of the Western

District is “a judicial district in which any defendant resides.” 28 U.S.C. § 1391(b)(1); 28 U.S.C. 

§ 124(d)(4).

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Facts 

5. Sunbelt rents equipment to its customers for use primarily in construction 

projects. 

6. Veritas is a general contractor. 

7. In 2019, Ruben Flores, Veritas’ Chief Executive Officer, executed on Veritas 

behalf a Sunbelt online Credit Application (the “Application”). 

8. A copy of the Application is attached as Exhibit 1. 

9. Sunbelt’s approval of the Application established an open account through which 

Veritas could rent equipment from Sunbelt on credit. 

10. The contractual terms (“Open Account Terms”) that apply to the open account are 

attached as Exhibit 2. 

11. During 2019, Sunbelt rented certain equipment (the “Equipment”) to Veritas. 

12. Veritas did not fully pay Sunbelt the rental charges for the Equipment. 

13. Unpaid invoices (the “Invoices”) reflecting the Equipment Veritas rented from 

Sunbelt and the associated rental fees are attached as Exhibit 3. 

14. An account summary that includes all of the Invoices is attached as Exhibit 4. 

15. Exhibit 4 reflects that as of April 2, 2020, the total unpaid principal amount of the 

Invoices was $302,068.53 (the “Principal Amount”). 

16. The Open Account Terms provide for a service charge that accrues at a rate of 

one and one-half percent (1.5%) per month on the balance of delinquent invoices until the 

invoices are fully paid. 

17. The Open Account Terms provide that Sunbelt can recover from Veritas the 

reasonable attorneys’ fees and costs it incurs to collect amounts Veritas owes Sunbelt. 

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18. Veritas has retained possession of some of the Equipment (the “Retained 

Equipment”). 

19. An accurate copy of the correspondence from Sunbelt to Veritas describing the 

Retained Equipment and demanding its return is attached as Exhibit 5. 

20. The Open Account Terms incorporate all of the terms of Sunbelt’s rental contract 

(the “Rental Contract”) found on Sunbelt’s website. 

21. An accurate copy of the Rental Contract is attached as Exhibit 6. 

22. Veritas also agreed to the terms of the Rental Contract when it accepted each 

piece of Equipment that was accompanied by a document from Sunbelt titled the “Rental Out” 

ticket. 

23. Copies of some of Veritas’ “Rental Out” tickets for the Equipment are attached as 

Exhibit 7. Though additional tickets exist, due to volume, Sunbelt has attached only a selection 

to be used as exemplars. 

Claim 1 – Breach of Contract 

24. Sunbelt incorporates the previous allegations presented in this complaint. 

25. The Open Account Terms, the Rental Contract and the Invoices constitute the 

contract between Sunbelt and Veritas. 

26. Veritas breached that contract by not fully paying Sunbelt for its rental of the 

Equipment. 

27. Veritas also breached its contract with Sunbelt by not returning the Retained 

Equipment. 

28. Sunbelt suffered damages because of Veritas’ breaches of contract. 

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Claim 2 – Claim and Delivery 

29. Sunbelt incorporates the previous allegations contained in this complaint. 

30. Sunbelt is the owner of the Retained Equipment. 

31. After Veritas breached its contract with Sunbelt, Veritas demanded the return of 

the Retained Equipment in accordance with the terms of its contract with Sunbelt. 

32. Sunbelt is entitled to regain possession of the Equipment. 

33. An Affidavit in further support of this claim is attached as Exhibit 8. 

Claim 3 – Conversion 

34. Sunbelt incorporates the previous allegations contained in this complaint. 

35. Sunbelt is the owner of the Retained Equipment. 

36. Veritas has improperly retained possession of the Retained Equipment. 

37. If the Retained Equipment has been lost, destroyed or damaged, Sunbelt 

alternatively is entitled to damages for conversion. 

38. Veritas’ refusal to return the Retained Equipment also entitles Sunbelt to recover 

punitive damages from Veritas. 

Claim 4 – Attorney’s Fees 

39. Sunbelt incorporates the previous allegations contained in this complaint. 

40. As a result of defendant’s breach of its agreement with Sunbelt, it became 

necessary for it to retain attorneys to litigate its claims. Accordingly, under the authority of 

Section 38.001, et seq., Texas Civil Practice and Remedies Code and the contract at issue, 

Sunbelt is entitled to recover its reasonable attorney’s fees, both in the trial of this cause and in 

connection with any subsequent appeal. 

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Demand for Relief 

ACCORDINGLY, Sunbelt respectfully requests that the Court enter a judgment in 

Sunbelt’s favor and against the defendants granting the following relief: 

i. ordering that the Retained Equipment be returned to Sunbelt, and 

ii. making Veritas liable to Sunbelt for the following: 

- the Principal Amount, 

- rental fees that accrue on the Retained Equipment from February 

28, 2020, until a judgment is entered, 

- service charges that have accrued and that will continue to accrue 

until the Principal Amount and subsequent rental fees are fully 

paid, 

- all other damages Sunbelt has suffered, 

- punitive damages, 

- Sunbelt’s reasonable and necessary attorneys’ fees and costs, 

- prejudgment interest, 

- post-judgment interest, and 

- any other relief that the Court deems appropriate. 

 Respectfully submitted, 

/s/Jose M. Luzarraga ______________________ 

JOSE M. LUZARRAGA 

State Bar No. 791149 

BUTLER SNOW, LLP

5430 Lyndon B. Johnson Freeway, Suite 1200 

Dallas, Texas 75240 

Phone: (469) 680-5500 

Fax: (469) 680-5501 

jose.luzarraga@butlersnow.com 

COUNSEL FOR PLAINTIFF 

SUNBELT RENTALS, INC. 

52942151.v1 

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