LUBBOCK, Texas — Bart Reagor on Tuesday filed a motion for a new trial after a jury found he owed Ford Motor Credit Company a little less than $54 million. The jury verdict came on October 3.
Ford sued Reagor Dykes, Bart Reagor and Rick Dykes on July 31, 2018. Reagor Dykes filed for bankruptcy, Rick Dykes settled out of court, and Bart Reagor fought the lawsuit.
Ford accused Reagor Dykes of fraud and default. So far, 11 people admitted to federal crimes related to the collapse of Reagor Dykes — including former Chief Financial Officer Shane Smith.
Mr. Reagor, long before the lawsuit, signed a personal guaranty. The guaranty, in this case, was a promise to be responsible if the business could not repay its debts to Ford. Once the business filed for bankruptcy, Ford invoked Reagor’s guaranty.
Reagor argued at first that Ford contributed to the fraud and therefor the guaranty was no longer valid. A federal judge disagreed.
The case went to trial specifically on the question of how much money was at stake.
In the motion for a new trial, Reagor’s attorney argued that under federal law, there are certain attorney fees, and interest that he is not obligated to pay.
In the bankruptcy case, Ford is both a secured creditor for some debts and an unsecured creditor for other debts. Reagor’s lawyer argues that Ford is an unsecured creditor for the lawsuit and therefore should not get any attorney fees.
Not only that, but the lawyer also argues that Ford cannot mix and match legal fees it spent on the lawsuit and the bankruptcy. As the argument goes, Ford’s lawsuit legal fees must be kept separate from Ford’s bankruptcy legal fees.
“Accordingly, because the Final Judgment improperly awards bankruptcy fees as unproven damages, a new trial is necessary,” the motion for a new trial said.
Ford has not responded in court records and the judge has not yet ruled.
CLICK HERE to see the motion for a new trial.