Ford Credit, Reagor's attorneys propose jury orders ahead of tri

Ford Credit, Reagor's attorneys propose jury orders ahead of trial

Posted:
LUBBOCK, Texas -

A jury trial is set for October to determine how much money Reagor-Dykes Auto Group co-owner Bart Reagor owes Ford Motor Credit following the creditor's multi-million dollar federal lawsuit that bankrupted the auto group last year. Attorneys for Reagor and the creditor filed a joint summary of the case Friday.

U.S. Senior Judge Sam Cummings ruled in Ford Credit's favor earlier this year, finding the auto group -- and Reagor himself -- violated dealership agreements through reported fraudulent activities. Ford Credit narrowed its lawsuit to just Bart Reagor and co-owner Rick Dykes after the auto group filed for bankruptcy last fall; Dykes then later cut a deal with Ford Credit, leaving Reagor the sole defendant in the original lawsuit.

Court records show Reagor's ultimately liable for whatever's owed to Ford Credit since he signed personal guaranties for the money acquired through Ford Credit's floor plan financing program. 

Reagor has demanded a jury trial to determine that amount. He disputes Ford Credit's estimate of more than $46 million.

Ford Credit originally put Reagor on the hook for $113 million, but recouped tens of millions by selling collateral it seized from the auto group earlier this year. That $46 million is what's left over, plus other costs Ford Credit claims it accrued during the litigation process.

A new pre-trial order filed Friday indicates Reagor contends Ford Credit needs to break down what is owed by each of the six dealerships involved in the lawsuit, and also argues Ford Credit needs to prove it took its collateral "in a commercially reasonable way." The jury is also expected to determine whether Ford Credit's attorney fees and "other cost" calculations are "reasonable and necessary." 

Attorneys for Ford Credit and Bart Reagor agree the trial should last two days. It's set to start at 9 a.m. Monday, October 1.

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