LUBBOCK, Texas (KCBD) - July 11 is the date set for Ford Motor Credit Company and Bart Reagor to settle the amount owed to Ford after the Reagor-Dykes Auto Group filed for Bankruptcy on Aug. 1.
However, there is a dispute from Reagor on the amount of money owed to Ford, according to court documents.
According to Reagor’s attorney, RDAG has paid more than $10 million to Ford in bankruptcy between Aug. 1 and Jan. 31. His attorneys believe that amount has not been credited in the full settlement amount, which is said to be more than $41 million.
Documents submitted to the court say Reagor is entitled to settlement credits because of an agreement made between Dykes and Ford. That agreement was settled in the amount of $58.7 million, which Dykes agreed to pay after Ford sued him, according to court documents.
“If FMCC has fully collected from Dykes, then FMCC is entitled to nothing from Reagor and the judgement should be zero,” attorneys for Reagor wrote in court documents.
Their lawyers argue Reagor is entitled to credit for all the money paid by Dykes and that should be reflected in the balance owed, according to court documents.
Their attorneys also argue $7.9 million in additional expenses and $1.4 million in attorney’s fees should not be owed because there is little evidence to show if the fees are recoverable within their past agreements.
And as far as attorney’s fees go, Reagor’s counsel said Ford bears the burden when it comes to its own legal expenses.
“FMCC seeks attorneys’ fees for all costs incurred by four different law firms but provides no time entries outlining the services performed,” Reagor and Dykes attorneys wrote.
Another argument made by Reagor’s attorney is he is not responsible for money owed by other people or entities Ford has sued.
All parties in this matter are set to meet at 9 a.m. inside the United States District Court downtown.