A bankruptcy judge on Thursday approved the Lubbock-based law firm of Mullin Hoard & Brown after-the-fact as attorneys for Reagor Dykes. MHB represented Reagor Dykes from August 1 – 21 in bankruptcy court.
After MHB and attorney David Langston (who just happens to be the former mayor of Lubbock) requested permission to withdraw from the case, Ford Motor Credit Company filed an objection.
Ford said MHB failed to file the proper disclosures and accepted money from Rick Dykes and Bart Reagor instead of accepting money from the Reagor Dykes business. Ford said a $500,000 retainer might cause MHB to be loyal to the men instead of the business.
Ford has previously said in court records that Reagor Dykes defaulted on roughly $40 million.
Regarding the issue of MHB representing Reagor Dykes, the judge rejected Ford’s argument.
“The receipt of the retainer funds from the Debtors’ principals by MHB did not create an adverse interest or an actual conflict of interest,” the ruling said.
While it’s true that MHB did not disclose the source of the retainer at the very start of the case, the judge agreed with Langston that local rules allow attorneys to make their disclosures in the first 30 days.
The judge authorized MHB to file an application for payment of fees and expenses. The money will be paid from the retainer. The specific dollar figure of MHB’s legal bill was not yet revealed in court records.
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