Alliance Auto Auction Must Defend Car Dealer’s Embezzlement Case

Alliance Auto Auction of Dallas lost a bid to arbitrate a case alleging that it helped two former employees of a car dealership cover up their embezzlement activities by hiding and selling used vehicles at a loss, after a Texas court of appeals affirmed a trial court’s ruling.

Lone Star Cleburne Autoplex Inc. sued two former employees—Robert Russell and Robert Hansen—alleging various breaches of fiduciary duty that resulted in millions of dollars in losses for the dealership. It also sued Alliance, alleging that it knowingly participated in Russell and Hansen’s activities. The two former employees engaged in theft of money ...