FirstCapital files counterclaim, motion to dismiss

FirstCapital files counterclaim, motion to dismiss

Posted: Updated:
LUBBOCK, Texas -

FirstCapital Bank filed a motion to dismiss First Bank & Trust's lawsuit against it in federal court. First Bank filed suit last month, claiming the Reagor-Dykes Auto Group has defaulted on loans, conducted floor plan financing fraud and perpetrated a check-kiting scheme involving FirstCapital. First Bank & Trust seeks monetary relief of more than $1 million.

FirstCapital argues it met the deadline to returned dishonored Reagor Auto Mall checks to First Bank & Trust.

FirstCapital Bank also filed a counterclaim against First Bank & Trust.

This is a news release from FirstCapital Bank:

Attorneys for FirstCapital Bank of Texas yesterday filed a counterclaim and a motion to dismiss, both in connection with First Bank & Trust’s lawsuit against FirstCapital.  In the counterclaim, FirstCapital contends that First Bank & Trust intentionally and wrongfully kept at least $3 million in proceeds from vehicles that were sold by Reagor Auto Mall, Ltd.  FirstCapital argues that those proceeds should have been paid to FirstCapital under a state filing law that gave FirstCapital Bank of Texas the priority lien position as to all Reagor Auto Mall vehicles and the proceeds from the sale of those vehicles.
 
Under Texas law, lenders are entitled to proceeds in the order they have filed the Uniform Commercial Code (UCC) financing statements with the State of Texas. FirstCapital first filed its paperwork in 2007, and First Bank’s filing was not made until 2017.  This placed FirstCapital in a first and prior position to collect on loan repayments whenever vehicles were sold by Reagor Auto Mall. The suit focuses on the proceeds of vehicles that were sold by Reagor Auto Mall over at least the last two years.
 
“This is simply a matter of identifying which lender was the first to file their paperwork.  By law, the lender which files first is the first to get paid,” said John Massouh, attorney for FirstCapital Bank of Texas. “Our filing clearly reflects that FirstCapital is entitled to those proceeds.”

This is a portion of the motion to dismiss:

OCT. 10: Reagor-Dykes aircraft to be sold, pending court approval
OCT. 10: Several filings in Reagor-Dykes bankruptcy case
OCT. 1: KamKad, Reagor-Dykes execute purchase agreement
SEPT. 24: FirstCapital Bank requests First Bank & Trust lawsuit against it, Reagor-Dykes, others move to federal court
SEPT. 21: Judge sets schedule, trial date in Vista Bank v FirstCapital Bank lawsuit
SEPT. 21: Former Reagor-Dykes CFO denies late payments, says Vista Bank attacked him, his family
SEPT. 20: Vista Bank sues former Reagor-Dykes CFO, claims loan default
SEPT. 19: Texas DMV: Reagor-Dykes should promptly resolve title issues
SEPT. 19: Brad, Kenneth Burgess file motion to dismiss Vista Bank lawsuit
SEPT. 18: First Capital Bank files motion to dismiss lawsuit
SEPT. 18: Court approves bid process for Reagor-Dykes Auto Group, extends use of cash collateral
SEPT. 17: Ford Credit, GM object to certain aspects of proposed Reagor-Dykes sale
SEPT. 14: Judge sets trial date in Ford Credit lawsuit vs. Reagor-Dykes
SEPT. 14: Reagor denies Ford Credit's claim vehicles sold out of trust
SEPT. 13: Dykes: Former Reagor-Dykes CFO admits he provided false info to Ford Credit
SEPT. 11: Reagor-Dykes Auto Group requests court to allow sale of company
SEPT. 4: Reagor-Dykes Auto Group establishes process to resolve customer problems
AUG. 31: International Bank of Commerce asks for court to allow it to foreclose on Reagor-Dykes dealerships
AUG. 31: More Reagor-Dykes companies, co-owners may soon file for chapter 11
AUG. 30: Court extends Reagor-Dykes employment of CRO; officer discusses potential dealership buyers
AUG. 29 : International Bank of Commerce asks for loan payment in Reagor-Dykes case
AUG. 29: Ford Credit objects to Reagor-Dykes earlier legal team
AUG. 27: Vista Bank doubles relief request in new federal suit against FirstCapital Bank
AUG. 25: Reagor-Dykes chief restructuring officer hires new legal team
AUG. 25: GM proceeding with termination of Reagor-Dykes Floydada
AUG. 23: Landlords demand rent for Reagor-Dykes dealerships in Lubbock, Plainview
AUG. 20: Ford Credit moves ahead with suit against Reagor, Dykes, some R-D companies
AUG. 18: Reagor-Dykes bankruptcy case: Read court order following Aug. 16 hearing
AUG. 17: Auto dealer claims Reagor-Dykes owes $513,000, vehicles may be in consumers' possession
AUG. 16: Vista Bank sues FirstCapital for $6 million, claims Dykes helped perpetrate check kiting scheme
AUG. 16: Bankruptcy court allows Reagor-Dykes continued use of cash collateral, hiring of CRO
AUG. 15: Reagor-Dykes Auto Group issues written apology
AUG. 14: Loss of Reagor-Dykes Chevrolet in Floydada a potential financial pitfall for city
AUG. 14: Vehicle auction company claims Reagor-Dykes owes it $687,000
AUG. 14: Ford Credit claims Reagor-Dykes is not following court orders; court grants extension to file docs
AUG. 13: U.S. Trustee opposes Reagor-Dykes request to hire chief restructuring officer
AUG. 10: Ford Credit: Reagor-Dykes fraud may be among largest of its type in U.S. history; GM files to terminate Floydada dealership
AUG. 9: Reagor-Dykes questions former CFO’s actions; Contractor claims $700,000 due now
AUG. 7: Former Reagor-Dykes employees claim they were not paid
AUG. 6: Customers concerned over Reagor-Dykes 'unwinding' process
AUG. 6: Ford suit against Reagor-Dykes on hold while bankruptcy case proceeds
AUG. 3: Judge approves Reagor-Dykes employee pay
AUG. 2: Mayor: Downtown Lubbock growth to remain strong regardless of Reagor-Dykes future
INITIAL STORY: Ford Motor Credit sues Reagor-Dykes; R-D files for chapter 11 bankruptcy

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