The Texas Court of Appeals has upheld a default judgment against Next Level Automotive, LLC, in a case involving a dispute over a vehicle purchase agreement. The ruling, issued on October 28, 2026, confirms that the court found proper service of process was conducted by the opposing party, Allied Solutions, LLC. This decision affects Next Level Automotive, which now faces the consequences of the default judgment.

The case, docketed as 07-25-00373-CV, centers around a legal battle initiated by Allied Solutions against Next Level Automotive. The court's ruling is significant as it reinforces the importance of proper service of process in civil litigation and highlights the procedural requirements that must be met to challenge a default judgment.

Background

Next Level Automotive, LLC, the appellant in this case, is a business involved in the automotive industry. Allied Solutions, LLC, the appellee, filed a lawsuit against Next Level Automotive on June 26, 2024, claiming foreclosure of a security interest, conversion, and seeking a declaratory judgment related to a Consumer Loan and Security Agreement for the purchase of a vehicle.

After initiating the lawsuit, Allied Solutions issued a citation and a writ of sequestration against Next Level Automotive. The appellant was served with these documents on October 31, 2024. However, the case took a turn when Allied Solutions later added a co-defendant, Dejanique Deshay Hodges, to the lawsuit. Despite attempts to serve Hodges, she was not properly served, and on July 2, 2025, Allied Solutions nonsuited her from the case.

Next Level Automotive did not respond to the lawsuit, leading Allied Solutions to file a motion for default judgment, which the trial court granted on September 18, 2025. Following this, Next Level Automotive attempted to set aside the default judgment, claiming improper service and venue. The trial court did not rule on this motion, leading to an automatic overruling by law. Next Level Automotive then appealed the trial court's decision.

The Ruling

The Texas Court of Appeals ruled in favor of Allied Solutions, affirming the default judgment against Next Level Automotive. The court stated, "Appellee properly served Appellant’s registered agent, Brandon Stewart, at Appellant’s registered office pursuant to the Texas Business Organizations Code." This statement underscores the court's finding that the service of process was conducted in accordance with legal requirements.

The judges on the panel included Justice Laura A. W. Pratt, among others. The court emphasized that default judgments are generally disfavored under Texas law, which prefers to adjudicate cases on their merits. However, the court found that Next Level Automotive failed to prove that it did not receive proper notice of the lawsuit.

Additionally, the court noted that Allied Solutions was not required to serve the First Amended Petition on Next Level Automotive since the amended petition did not introduce new causes of action against the appellant. The court concluded that the appellant's arguments regarding improper venue and lack of notice did not meet the necessary legal standards to overturn the default judgment.

Impact

This ruling has significant implications for Next Level Automotive, as it confirms the validity of the default judgment against the company. The court's decision reinforces the principle that parties must adhere to procedural rules regarding service of process. It also highlights the importance of timely responses to legal actions, as failing to do so can result in default judgments that are difficult to overturn.

The court's ruling may also set a precedent for similar cases in Texas, emphasizing the necessity for plaintiffs to ensure proper service and for defendants to respond promptly to avoid default judgments. Businesses involved in litigation should take note of this case as it illustrates the potential consequences of not addressing legal matters in a timely manner.

What's Next

Next Level Automotive may have limited options for appealing this decision further. The court's ruling is a final judgment unless there are grounds for a further appeal to a higher court. Details were not available in the court filing regarding any related cases or further actions that Next Level Automotive might pursue.