Okay, lets try to bring all of this back to one place.....
"I recently bought a drag race car in Texas, the ad stated that many things as facts such as the perfomance off the car 6.80's in an eight mile race."
*** This will be your first challenge. It is easy to say that a "car" did 6.80, but there is no assurance that the car will continue to do that... or when it was done.... or under what conditions. Though there is an ASSUMPTION that the statement is correct, what do you have to show the court that the car you purchased, at the time you purchased it, was able to do that??
"When I was in Texas the owner stated that the engine was tested at 640 horse power."
*** Again, same as above. There are a LOT of factors that go into determining if this is true. For example, do you have a printout of the dyno run showing this.... or is this just 'salesman puff'.
"When I got home, the previous owner tracked me down and told me to check the engine because he had seen the ad and the engine was not described as it was when he sold the car."
*** What do you mean "previous owner" as to "when he sold the car"?? Did you buy this car from a middle-man?? Did this 'middle-man' have any direct knowledge of the car?? Why this one-step removed owner??
"Last night I took the engine apart and sure enough the guy I bought the engine from had lied to me!"
*** And THAT might be your downfall. The seller could make the claim.... "Your Honor, the buyer took the engine apart!!! There is no assurance that the engine he is claiming was deficient.... is even the engine I sold him with the components I sold." He could claim that you swapped cams, pistons, lifters, etc.
"Do I have a case for small claims in Texas?"
*** Obviously, this is the key to the entire post.... and my answer would have to be.... any case you might have would be weak. Here is my reasoning:
- This is a race car. That is a specialty item, very likely with a high amount of customization.
- As such, it would be assumed that as a buyer, you would also have at least a considerable amount of experience in these 'custom' products.
- You apparently failed to exercise your due diligence, especially when 'enhanced' by your special 'experience'.
- This failure to properly document and inspect the vehicle may be a proximate cause for your being in the situation you are in.
If the above is correct, this would make you at least partly responsible for the situation.
This does not release the seller from his misrepresentations to you. So, with that, you may have one HUGE thing in your favor.... that is the DTPA (Texas Deceptive Trade Practices Act). Texas has one of the strongest consumer protection acts out there, and it applies to ALL sales, public and private.
I suggest you consider refocusing your efforts on the use of a DTPA claim. A copy of this statute can be found at:
http://www.capitol.state.tx.us/statutes/bc/bc0001700.html#bc013.17.41
To exercise a DTPA claim, you need to put the seller on notice (certified RRR). This notice must contain specific items as detailed in the statute (Texas Bus and Comm Code, §17.505):
"a consumer shall give written notice to the person at least 60 days before filing the suit advising the person in reasonable detail of the consumer's specific complaint and the amount of economic damages, damages for mental anguish, and expenses, including attorneys' fees, if any, reasonably incurred by the consumer in asserting the claim against the defendant. During the 60-day period a written request to inspect, in a reasonable manner and at a reasonable time and place, the goods that are the subject of the consumer's action or claim may be presented to the consumer."
Send your notice by certified RRR. Then, wait the required 60 days. If he doesn't respond, then you can consider filing suit under this statute.