Opinion ID: 27583
Heading Depth: 2
Heading Rank: 1

Heading: DTPA Claim.

Text: 13 Hugh Symon claims that Motorola violated the DTPA, TEX. BUS. & COM. CODE § 17.44, by misrepresenting the quality, grade and characteristics of its MPC821 micro processing chip. The elements of a valid DTPA complaint are: (1) the plaintiff is a consumer; (2) the defendant engaged in false, misleading, or deceptive acts; and (3) these acts constituted a producing cause of the consumer's damages. Chamrad v. Volvo Cars of North America, 145 F.3d 671, 672 n. 3 (5th Cir.1998) (citing Doe v. Boys Clubs of Greater Dallas, Inc., 907 S.W.2d 472 (Tex.1995)). A consumer is defined as: 14 [A]n individual, partnership, corporation, this state, or a subdivision or agency of this state who seeks or acquires by purchase or lease, any goods or services, except that the term does not include a business consumer that has assets of $25 million or more, or that is owned or controlled by a corporation or entity with assets of $25 million or more. 15 Id. § 17.45(4)(emphasis added). Therefore, a complaining plaintiff under the DTPA must be a consumer meeting the definition of § 17.45(4). Flenniken v. Longview Bank & Trust Co., 661 S.W.2d 705, 707 (Tex.1983). 16 Assets for the purposes of § 17.45(4) means gross assets. See Eckman v. Centennial Savings Bank, 784 S.W.2d 672, 673 n. 3, 674 (Tex.1990). Hugh Symons's total gross assets exceed $25 million, disqualifying it as a consumer capable of bringing a claim under the DTPA. It contends, however, that Concept Technologies was the interested party bringing the DTPA suit and that Concept had less than $25 million in assets. Further, Hugh Symons asserts that it transferred its shares in Concept to Elata, plc, on October 17, 2000. 1 Symons then substituted in as the plaintiff on December 29, 2000. Concept then assigned its interest in the DTPA suit to Symons on March 5, 2001. 17 Where a DTPA plaintiff is asserting a claim acquired by assignment, the assignor's consumer status controls. PPG Indus., Inc. v. JMB/Houston Ctr. Partners Ltd. Partnership, 41 S.W.3d 270, 279 (Tex.App. — Houston [14th Dist.] 2001, no pet.). Therefore, Hugh Symons contends, because Concept held less than $25 million in assets, it was a consumer under the DTPA and Hugh Symons, as its assignee, may pursue the suit. We disagree. At all pertinent times — at the time of the alleged violation of the DTPA and at the time that the lawsuit was brought — Concept was a wholly-owned subsidiary of Symons. Despite the later transfer of shares within the Hugh Symons family of businesses, § 17.45(4) acts to bar an entity controlled by another with assets of greater than $25 million from bringing a DTPA suit because it is a non-consumer. 18 We affirm the magistrate judge's ruling that Hugh Symons and Concept were not consumers under the DTPA. 19