LUBBOCK, TX (KCBD) - Bart Reagor has responded to the 40-plus million dollar lawsuit filed by Ford Motor Credit.
Reagor’s response varies dramatically from Rick Dykes', who blamed former Chief Financial Officer Shane Smith for providing “false financial information” to Ford Motor Credit, himself and Reagor.
Instead, Reagor’s response barely mentions Smith, only confirming him as a former CFO.
In Reagor’s defense to the lawsuit, he claims Ford Motor Credit’s claims are barred because of “failure to exercise ordinary care” and because of “unclean hands.”
In Dykes' response, he questioned the relationship between Smith and the Dallas regional manager of Ford Motor Credit.
Dykes stated Smith had worked for Reagor-Dykes Auto Group for 11 years as the CFO, coordinating and managing all financial arrangements, including Ford Motor Credit financing.
Prior, this job, Dykes said Smith was an employee of Ford Motor Credit.
Dykes said Smith had a close and personal relationship with Ford Motor Credit’s Dallas regional manager and everything was going smoothly until Ford Motor Credit notified Smith it would undertaking an emergency on-site review of the company’s financial records.
Dykes said he and Reagor were out of town at the time, and came back to Lubbock as soon as Smith notified them of the review.
On July 31, Ford Motor Credit filed the $41 million lawsuit.
The next day, Aug. 1, six Reagor-Dykes Auto Group dealerships filed for bankruptcy, the same day Dykes said Smith confessed to providing false information to Ford Credit, himself, and Reagor.
Dykes said they immediately fired Smith and turned his disclosure over to the U.S. Attorney’s Office who is now investigating.
Dykes' response to the suit argued there had not been enough time to full evaluate the case, including the nature of Smith’s relationship to Ford Motor Credit’s Dallas general manager.
Reagor’s response concludes with, “Because of the reorganization efforts, the Defendants have been unable to obtain sufficient information to deal with this litigation, and therefore Defendants reserve the right to assert potential counterclaims...”
The next RDAG hearing is scheduled for Sept. 17.
Judge Sam Cummings has also set a timeline for the lawsuit to go to trial.
On Friday, he ordered that amended pleas and motions for other parties joining the suit should be filed by Jan. 15 of 2019.
He also set a trial date, beginning on Feb. 3 in the year 2020.