A legal battle has erupted between two Texas-based companies over accusations of defamation and statutory libel. A&M Equipment, LLC has filed a complaint against DONSOL, LLC in the District Court of Harris County, Texas on February 27, 2025. The lawsuit alleges that DONSOL's actions have caused significant harm to A&M Equipment's reputation and business operations.
The dispute centers around a demand letter sent by DONSOL to A&M Equipment on August 23, 2024. This letter demanded payment for invoices related to five orders placed in May and June 2024, totaling $136,755.00, including $1,500.00 in attorney’s fees. The letter threatened legal action for "theft of goods" unless the amount was paid or the products returned immediately. Crucially, this demand was also copied to four of A&M Equipment's major customers: Enterprise Products Partners LP; Energy Transfer LP; CTAP, LLC; and WhiteWater Midstream, LLC. According to A&M Equipment's complaint, these actions were intended solely to damage their reputation with these clients.
A&M Equipment argues that these statements are false and defamatory as they had an established practice of paying invoices two months after receipt of goods—a practice accepted by DONSOL over their long-standing business relationship. Furthermore, they claim that the title to the hardware transferred upon delivery according to their purchase order terms, making any accusation of theft baseless. They also highlight ongoing issues with non-conforming products from DONSOL which were under dispute at the time of the demand letter.
In response to these allegations and perceived reputational damage within the industry—exacerbated by DONSOL allegedly spreading these claims verbally—A&M Equipment is seeking monetary relief under $250,000 for damages including penalties and attorney’s fees. Specifically, they request general damages amounting to $50,000 for harm done to their reputation and exemplary damages of $150,000 due to what they describe as malicious conduct by DONSOL.
The case is being handled by attorneys Rex A. Mann and Diana DuCroz from Mann Phillips PLLC on behalf of A&M Equipment. They are pursuing recovery not only for financial losses but also for reasonable attorney’s fees incurred during this litigation process.
The presiding judge over this matter is yet unnamed in Case ID 2025-1 3620 / Court: 21.