A Dallas judge entered a $96.2 million judgment against BBVA Compass Bank and one of its executives in a ruling that upholds the majority of a December 2017 jury verdict against the bank for fraud during loan renewal and modification negotiations with the developer of three northeast Tarrant County subdivisions.
The June 27 judgment by Dallas County State District Court Judge Staci Williams preserves all but one portion of the original $98 million jury verdict and adds pre- and post-verdict interest. Trial jurors agreed that Compass and bank executive Sam Meade committed fraud by misleading developer David Bagwell as he worked to renegotiate the terms and conditions of his financing for high-end housing projects including the Broughton, Whittier Heights and Old Grove subdivision developments in Colleyville, TX.
Attorneys for law firm Boyd, Powers & Williamson presented evidence that BBVA Compass deceived Bagwell about the status of efforts to refinance his loans, which occurred during the 2008-2009 financial crisis and real estate downturn. According to evidence and trial testimony, Meade assured Bagwell that his loans were being renewed while the bank was simultaneously working in secret to sell the loans at a steep discount to a competing developer. Once the new developer acquired the debt, partnerships associated with the developments were forced into bankruptcy and lost control of the properties.
In addition to actual damages suffered by Bagwell and associated partnerships, the judgment preserves the jury’s $40 million exemplary damages award meant to punish Compass and deter future behavior.
Monitor 100 2018
Many children play pretend. Some pretend to be professional athletes, some to be heroines in science fiction stories. Then there are others that take on roles like doctor, police officer or astronaut while scurrying around the backyard. For Kelly Skalicky,... read more
The California Financing Law contained in Division 9 of the California Financial Code, commencing with §22000, requires licensing and regulation of finance lenders and brokers making and brokering consumer and commercial loans, except as specified. It prohibits misrepresentations, fraudulent and... read more