Transmission Dispute Between San Angelo Dealership, Customer Heads to Court

SAN ANGELO, TX — A Mertzon man and a San Angelo car dealership are disputing responsibility for a failed transmission in a 2014 Chrysler Town & Country in a civil lawsuit now pending in Tom Green County Court at Law, according to court records.

Jerry M. Peters filed suit Sept. 23, 2025, against Lithia CJDSA, Inc., doing business as All American Chrysler Dodge Jeep Ram Fiat of San Angelo and All American Autoplex. Peters alleges the dealership failed to properly advise him of required transmission maintenance, which he says resulted in the denial of an extended warranty claim and forced him to pay $9,545.75 for a transmission replacement.

According to Peters’ petition, he purchased the vehicle in 2014 and had most manufacturer-recommended servicing performed at All American. After the manufacturer’s warranty expired, Peters purchased a third-party extended warranty in May 2022. The warranty provided coverage for 60 months or 100,000 miles, whichever came first. Court records state the vehicle had more than 159,000 miles at the time the extended warranty was purchased.

Peters alleges that in September 2023, he experienced transmission shifting problems and contacted All American’s service department but was told it would take several weeks to schedule an appointment. He then took the vehicle to Stanley Chrysler Dodge Jeep Ram in Brownwood, where a technician found metal shavings in the transmission fluid and determined the transmission needed replacement, according to the filing.

The petition states the warranty provider requested service records showing the transmission fluid had been changed in accordance with manufacturer recommendations. Peters alleges he had been told the transmission was sealed and did not require servicing and was never informed by All American that transmission fluid replacement was needed. The warranty claim was denied, and Peters paid for the transmission replacement himself, the suit states.

Peters alleges violations of the Texas Deceptive Trade Practices Act, negligence, and breach of warranty. He is seeking actual damages, additional damages under the DTPA, mental anguish damages, attorney’s fees, and court costs. He has also requested a jury trial.

All American filed its first amended answer and counterclaim on Oct. 30, 2025. In that filing, the dealership denies Peters’ allegations and asserts a general denial of liability. The dealership also claims an arbitration agreement governs the dispute and reserves the right to compel arbitration.

In its answer, All American asserts multiple affirmative defenses, including that Peters is responsible for vehicle maintenance, that the dealership did not sell him the extended warranty, and that it is not liable for warranty decisions made by third parties. The dealership also claims Peters’ lawsuit is barred by the statute of limitations and should be reduced or barred based on comparative responsibility.

In its counterclaim, All American alleges Peters serviced the vehicle at Stanley Chrysler Dodge Jeep Ram in Brownwood in January, July, and September 2023, including transmission fluid service and the full transmission replacement. The dealership alleges it did not service the transmission and did not provide an extended warranty more than nine years after the vehicle’s purchase.

All American further alleges Peters’ claims are groundless, brought in bad faith, or based on knowingly false facts, and that the lawsuit violates provisions of the Texas Civil Practice and Remedies Code. The dealership is seeking attorney’s fees, court costs, expert fees, and other relief.

Court records show the case is scheduled for a scheduling conference at 2 p.m. Jan. 8, 2026, before Judge Ben Nolen in Tom Green County Court at Law. No rulings have been made on the merits of the claims or counterclaims.