A Dallas County jury has awarded a North Texas real estate developer $98 million after finding that BBVA Compass Bank and one of its executives committed fraud.
During the financial crisis of 2008-2009, developer David Bagwell sought to modify loan financing for three planned luxury subdivisions in Tarrant County through his lender, BBVA Compass. As reported in The Dallas Morning News, the bank told Mr. Bagwell his loans were being renewed, while simultaneously negotiating in secret to sell the loans at a substantial discount to a rival developer.
Emails from Compass connected the dots for this jury, said Derrick Boyd of Decatur, Texas-based Boyd Powers & Williamson, who represents Mr. Bagwell. We were able to show that while Mr. Bagwell was actively trying to work with the bank to keep these developments operating, Compass was misleading him and working behind his back to sell his debt to a competitor.
The $98.02 million verdict included $37.86 million to Mr. Bagwell and $20.16 million to related business entities. The jury also returned $40 million in punitive damages after finding that the bank’s fraudulent actions caused harm to the parties.
The case is David Bagwell et al v. BBVA Compass and Sam Meade, Cause No. DC-14-00991 in the 101st Judicial District Court in Dallas County.