Former attorneys for Reagor-Dykes seeking payment for their work

Former attorneys for Reagor-Dykes seeking payment for their work
(Source: Mullin Hoard & Brown)

LUBBOCK, TX (KCBD) - Lubbock law firm Mullin Hoard & Brown, L.L.P., the former attorneys representing Reagor-Dykes Auto Group and their seven subsidiaries has joined the growing number of groups seeking money from the once-ubiquitous dealership group.

The law firm filed a Final Application for Approval of Fees motion in Federal Court Wednesday afternoon.

The 43-page motion seeks to recoup more than $246,000 attorneys billed Reagor-Dykes from the night of July 31 to August 21 when they were dismissed as the representing law firm by the dealership’s Chief Restructuring Officer.

Ford Motor Credit opposes payment to the law firm, stating in an October 5 hearing that Mullin Hoard & Brown had previously only represented Rick Dykes, and that Dykes and Bart Reagor had used their personal money to pay a $500,000 retainer fee for the law firm.

Ford claims that move was not disclosed to the bankruptcy court once hearings began.

In Wednesday’s filing, Mullin Hoard & Brown states they still have the $500,000 in a trust account. Dykes gave them a personal check for $250,000 on August 8. Reagor gave them a check for the same amound August 10. The first bankruptcy hearing in the case was August 16.

The firm states once BlackBriar Advisors was brought in as the Chief Restructuring Officer they were notified Reagor-Dykes would seek other counsel. Mullin Hoard & Brown says they received a letter officially notifying them of the decision on August 23. In it, they claim Reagor and Dykes asked their retainer be returned minus the more than $246,000 in legal fees and expenses.

The firm was advised following the October 5 hearing to file Wednesday’s application. Any objections to the filing have to be sent to the court within 21 days.

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