Bart Reagor, wife deny $2.4 million breach of contract complaint
UPDATE: The Reagors filed an objection to the Plaintiff’s Reply Brief in this case on June 25, 2020, saying in part, “This is not a simple case where a debtor simply stopped making payments on a note. Rather, it appears there are multiple, shifting, interrelated moving parts. If the Court is going to permit this late filing with no supporting documentation, it is only fair and just that the Reagors be entitled to review the records he has relied upon and to take his limited deposition.”
PDF: DEFENDANTS’ SUR-REPLY IN OPPOSITION TO PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT
LUBBOCK, TX (KCBD) - Universal Underwriters Service Corporation, a company who provides protection products for customers buying a vehicle, is suing Bart and Annette Reagor for $2,471,650.64 plus all attorneys’ fees, costs and expenses. According to the contract between Universal and Reagor-Dykes Auto Group, Bart and Annette signed a personal guaranty on the loan.
Bart and Annette filed an answer to Universal’s complaint on April 16, 2019, admitting the unconditional personal guaranty is between Universal and them, but deny breaching the contract. The court documents filed say on many of the allegations, “Defendants are without knowledge of information sufficient to form a belief as to the truth of the allegations,” and therefore “deny the allegations.”
The response also says the contracts, the guarantee and other contractual documents are “the best evidence of its contents and deny all allegations and/or characterizations which differ and/or deviate from its terms.”
Universal Underwriters Service Corporation offers vehicle service contracts, theft deterrent contracts, limited warranty contracts and guaranteed asset protection (GAP) contracts. The products offered by Reagor-Dykes Auto Group are not owned by them, but are owned by Universal.
The lawsuit filed in Federal Court says the defendants, Bart and Annette, have “failed and refused to fulfill their obligations under the guaranty and have therefore committed a breach of contract.” In Bart and Annette’s response, they deny the allegations of the complaint.
The lawsuit also says throughout 2016 and 2017, Reagor-Dykes Auto Group, the defendants and Universal entered into three agreements; the F&I Master Dealer Agreement, the F&I Loan Agreement and Promissory Note, and the Unconditional Personal Guaranty.
According to the lawsuit, Reagor-Dykes Auto Group has not made complete payments owed to Universal for the months of May, June, July, August, September, and October in 2018.
Court documents show the combined debt owed by RDAG to Universal under the Loan Agreement was $4,920,481.
Court documents show both Bart and Annette signed an unconditional guarantee to the payment of any and all indebtedness or obligations of the Reagor-Dykes Auto Group to Universal. They also agreed to the payment of any and all costs and expenses in connection with the enforcement of the guaranty and collection.
The documents filed today say: As a result of the bankruptcy, Defendant Bart Reagor, and his co-owner Rick Dykes, caused the debtor entities to hire and seek approval of the employment of an independent Chief Restructuring Officer, BlackBriar Advisors, LLC (the “CRO”). Defendant Bart Reagor has been unable to undertake the necessary analysis of information that has to be obtained through and with approval of the CRO, who has been solely focused upon the reorganization efforts of the debtor entities. In effect, Defendant Bart Reagor is in the position of not having access to much information of the companies he owns as he cannot distract the CRO from the reorganization efforts. Because of the focus on the reorganization efforts, Defendants have been unable to obtain sufficient information relating to this litigation, and therefore reserve the right to assert potential counterclaims, to supplement and amended this answer and the affirmative defenses, and to assert any other grounds to deny any recovery to Plaintiff or to add any cross-claim and/or third-party claim.
Bart and Annette Reagor are demanding a trial by jury on all matters that may be tried. They’re also asking the judge to dismiss Universal’s complaint. Bart and Annette are also asking for the recovery of their costs and attorneys’ fees and for “further relief to which they may be justly entitled.”
On July 31, 2018, Ford Motor Credit Company, LLC filed its original complaint against certain Reagor-Dykes Auto Group entities. On August 1, 2018, and as a result of the Ford Litigation, six Reagor-Dykes Auto Group entities filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code. On November 2, 2018, four more Reagor-Dykes Auto Group entities filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code.
MORE: REAGOR-DYKES CONTINUING COVERAGE
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