Judge sets schedule, trial date in Vista Bank v FirstCapital Bank lawsuit
In Vista Bank's lawsuit against FirstCapital Bank and its CEO and its chairman, the judge has set a schedule for the case.
Senior U.S. District Judge Sam Cummings has set trial date of March 2, 2020 at the Federal Building in Lubbock. More details on the schedule are in the pdf below.
Vista Bank is asking for more than $12 million in relief from an alleged check kiting scheme it claims was perpetrated, in part, by Reagor-Dykes co-owner Rick Dykes. The suit claims FirstCapital Bank "knowingly facilitating and supporting the continuation of a multi-million dollar check kiting scheme initiated by the Reagor-Dykes entities to enable FirstCapital to continue to collect fraudulent deposits, while actively pushing fraud losses onto Vista through a system of mass check returns."
Vista is filing to recover "damages maliciously inflicted by FirstCapital and the Burgess Brother Defendants through improper use of non-public, material inside information."
FirstCapital has filed a motion to dismiss the suit, claiming, like Vista Bank, it is also a victim of a check kiting scheme by Reagor-Dykes. The filing indicates hundreds of creditors, including both banks, will be left "holding the bag" for unpaid Reagor-Dykes checks and bills.
The motion to dismiss claims First Capital met its obligations to dishonor more than $6 million in Reagor-Dykes checks and Vista received timely notice. Citing the uniform commercial code and federal regulations, First Capital claims it satisfied its legal duty.
The attorney for Brad and Kenneth Burgess filed a similar motion to dismiss the suit, which states Vista's claims are vague and do not meet the level of scrutiny required by Federal Rules of Civil Procedure, "Plaintiff omits all details, including which entity supposedly made what misrepresentation when."