Opinion ID: 1579863
Heading Depth: 3
Heading Rank: 3

Heading: Breach of Oral Contract Claims

Text: McDavid's pleadings allege that Subaru violated section 5.02(b)(15), which makes it unlawful for a manufacturer to deny or withhold approval of a written application to relocate except as the Code allows. But this provision applies to written, not oral, relocation requests. Tex. REV.CIV. STAT. art. 4413(36), § 5.02(b)(15). Consequently, we agree with the court of appeals that this section does not delegate to the Board the authority to resolve a dispute between a manufacturer and a dealer about an alleged oral agreement to relocate a franchise. See 10 S.W.3d at 66. Likewise, because the promissory-estoppel doctrine presumes no contract exists, Wheeler v. White, 398 S.W.2d 93, 96-97 (Tex.1965), McDavid's claim that Subaru is now estopped from denying the existence of an oral agreement with McDavid also falls outside the Code's province. However, the necessary facts underlying McDavid's breach of oral contract claims raise an issue that falls within the Board's exclusive jurisdiction. As we discussed above, the Code strictly regulates the number and locations of motor vehicle dealerships by requiring a license from the Board for each separate and distinct dealership location. Tex.Rev.Civ. Stat. art. 4413(36), § 4.02(c). The Board may deny a license if certain statutory factors exist, or if a denial is warranted in the face of third party protests. See TEX.REV.CIV. STAT. art. 4413(36), § 4.06(a)-(e). Thus, McDavid's breach of oral contract claims are predicated on the assumption that the Board would have allowed the relocation and granted the license under section 4.06. And the Board's exclusive jurisdiction gives it the sole authority to initially decide if it would have granted the license to allow the relocation. Consequently, McDavid must first exhaust its administrative remedies and obtain a final Board decision about whether the Board would have granted the license to allow the relocation. Then, McDavid can pursue its breach of oral contract claims in the trial court based on that final Board decision.