Bart Reagor, wife ordered to pay $2.7 million to Universal Underwriters Services
LUBBOCK, Texas (KCBD) - Bart Reagor and his wife Annette have been ordered to pay $2,715,760, plus pre-judgment interest, post-judgment interest and attorneys’ fees and costs in the amount of $38,560 to Universal Underwriters Services Corporation.
U.S. District Judge Sam R. Cummings made the judgment on June 7, 2021.
Universal Underwriters Service Corporation, a company who provides protection products for customers buying a vehicle, sued Bart and Annette Reagor in March 2019. According to the contract between Universal and Reagor-Dykes Auto Group, Bart and Annette signed a personal guaranty on a $3 million loan from Universal.
The company 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, “failed and refused to fulfill their obligations under the guaranty and have therefore committed a breach of contract.”
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 had not made complete payments owed to Universal for the months of May, June, July, August, September, and October in 2018.
The combined debt owed by RDAG to Universal under the Loan Agreement was $4,920,481.
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.
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.
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