Judge rules parties must work together in Dick Poe dealership dispute

The court battle between the heir of an automotive giant and the people in charge of managing his estate entered a new stage.

Richard Poe II, the son of the legendary Dick Poe, is tangled in a legal dispute with Poe’s longtime accountant and comptroller, Anthony Bock and Karen Castro, respectively. Dick Poe, who died in May, named Bock and Castro executors of his will and trustees of the Poe estate. Poe’s obituary stated the family businesses employed approximately 400 people at the time of his death.

During a hearing Friday before Probate Court Master Judge Joseph Strelitz, both sides argued for control of the estate.

Days before dying, court documents show, Dick Poe issued shares of Poe Management Inc. for himself, changing the ownership of the corporation and taking some control away from his son, Richard Poe II.

Doris Sipes, attorney for Poe II, argued the sale is void because the company bylaws require a 60-day notification period, among other things, which did not happen.

“This issuance of stocks is not consistent with the bylaws, is a fraudulent takeover by this man (Dick Poe) who had trusted his lawyer, had trusted his accountant and his bookkeeper,” she said.

The change of ownership unleashed a series of events that, according to court records, threatens the future of Dick Poe Toyota.

According to documents filed by Poe II’s attorney, the vehicle distributors require prior approval before any change in ownership. Now Gulf States Toyota, the distributor, has filed a notice of franchise termination for Dick Poe Toyota. Testimony during the hearing revealed Gulf States recognizes Richard Poe II as a representative of the dealership, but not the executors of the estate. That case is under appeal before the Texas Motor Vehicle Board.

Anthony Bock, one of the trustees, testified they were taken by surprise by Gulf State Toyota’s termination notice. “By the time I got the letter, the damage had been done. We didn’t anticipate it,” he said. “We were hoping Gulf States would sit in the background and let us work out our disputes.”

Sipes said the loss of the franchise would be “a big, big damage to the estate and to the heirs.”

During testimony, Poe II said the loss of the franchise would be devastating because that would tarnish his ability to secure future franchises. “It will stop my entire career. I’m done.”

Poe II also owns El Paso Honda. On the stand, Bock recognized Poe II has done a good job managing that dealership.

“Allow me to do what I do,” said Poe II to the judge. “Allow me to run these dealerships and allow me to do what Toyota wants me to do.”

This hearing comes on the heels of an incident November 11, when Richard Poe II entered the Dick Poe Chrysler-Jeep dealership with two off duty police officers, according to court records. The dealership locks were changed and the comptroller, Karen Castro, and the general manager, Jerry Reckelbus, were ousted. Poe II was accompanied by his attorney, Doris Sipes, and El Paso Honda General Manager Gerald Miller. During the incident, Castro’s computer was removed from her office.

Judge Strelitz, who only heard motions Friday related to the immediate operation of the dealerships, admitted he had a complex decision to make. He called Poe II, Castro and Bock to the bench and told them he wouldn’t “give them a divorce.”

“Your family has been in the dealership business forever,” he told Poe II. “Each of you has worked had to build that dealership. You’re going to have to work together.”

“I’m going to put it on you,” he turned to Poe II. “You’re either going to make this deal or break this deal.”

The judge placed Poe II in charge of Dick Poe Toyota in efforts to avert the loss of the franchise, but allowed the trustees to maintain control of the entity that owns the dealership.

“You get to operate the dealership but you’re going to have to report to the executors,” he said to Poe II. “Through the scheme your father set up, they have to know what’s going on.”

Judge Strelitz, who was hearing the case at the request of Probate Judge Patricia Chew, reminded the parties they were also making decisions in the interest of Dick Poe’s other son, Troy, who suffers cerebral palsy.

Judge Strelitz told Poe II, Castro and Bock it was up to all three to ensure the Dick Poe legacy won’t be diminished.

“I hope you are remembered, all three of you, for growing the Dick Poe dealerships as opposed to contributing to (their) demise.”

The trial date is set for August 8, 2016.