LUBBOCK, Texas — International Bank of Commerce responded in Lubbock federal court Monday to Ford Motor Company’s claims that the bank’s lawyers should be punished.
Ford claimed a few weeks ago that IBC’s lawsuit in Lubbock was legally indefensible.
The lawsuit, first filed in July, said IBC lost $25.7 million on the Reagor Dykes companies. Other court records indicated that Ford lost more than $100 million on Reagor Dykes.
Related Story: Bank sues Ford in Lubbock related to Reagor Dykes fraud allegations
Related Story: Ford asks judge in Lubbock to punish IBC for ‘legally indefensible’ lawsuit
The Lubbock-based automotive dealership filed for bankruptcy in August 2018 amid allegations of fraud and default. The bankruptcy case was still ongoing as of Tuesday.
In essence, the original lawsuit said Reagor Dykes would learn from Ford in advance before there were inspections and audits. This allowed Reagor Dykes to fake the paperwork to make it look like things were going well.
As of November 4, eight Reagor Dykes employees pleaded guilty on charges related to the collapse of Reagor Dykes.
Related Story: Reagor Dykes administrator admits to fraud, adds to list of guilty employees
IBC claims that had Ford not enabled the fraud then IBC and many other would not have lost money.
In November, Ford asked a federal judge to punish IBC for filing the lawsuit in the first place – saying, among other things, Ford had no duty to IBC and IBC knew that.
In the most recent court document, IBC said Ford completely misrepresented the original lawsuit in its demand for punishment.
IBC said the claim was — and still is — “an agent or employee of Ford conspired in and/or aided and abetted RDAG’s fraud against IBC.”
IBC said the rule for punishing misconduct “is not a weapon for intimidating or browbeating opposing counsel to refrain from filing a pleading that a lawyer disagrees with,” nor is it “a bargaining chip to be flashed cavalierly in hopes of securing a strategic advantage.”
