LUBBOCK, Texas— Ford Motor Credit Company asked a federal judge in Lubbock for sanctions against International Bank of Commerce after Ford complained that IBC made claims that were legally indefensible.
IBC filed a lawsuit in July against Ford in Lubbock for “negligent lending,” but “IBC’s negligence claim is legally indefensible for multiple, independent reasons,” according to a document filed Monday.
“IBC was alerted by Ford Credit to the law barring the claims (as set out in the motion), and was given extra time … to reconsider its filing of such claims, yet has chosen to pursue this baseless lawsuit against Ford Credit,” Ford said in court records.
Ford claimed IBC “knew about these defects yet still pursued its negligence claim against Ford Credit.”
Ford also claims that the “negligent lending” allegation remains “fundamentally defective because Ford Credit owes no duty to IBC,” the newest document states.
In simple terms, Ford claims IBC should never have sued.
The lawsuit is related to the collapse of the Reagor Dykes auto dealerships. Reagor Dykes filed for bankruptcy on August 1, 2018 amid accusations of fraud.
Ford and IBC both lost money due to Lubbock-based Reagor Dykes. IBC’s underlying claim is that Ford basically turned blind eye which in turn allowed Reagor Dykes to take out fraudulent loans that eventually hurt a long list of businesses and people.
The counter-argument from Ford is that absolutely nothing in Texas law holds Ford responsible for the money IBC lost with Reagor Dykes.
Ford said, “Ford Credit respectfully requests that the Court grant its Rule 11 Motion [to punish IBC] in its entirety.”
Ford did not say specifically what that punishment should be.
As of Monday, the lawsuit was still ongoing in Lubbock.
