Derrick Boyd was born in Plainview and raised in Decatur, where he still lives and practices law. But last week, he learned trying a case in Dallas isn’t so bad.
Last Wednesday, Boyd and his client, developer David Bagwell, stood before a Dallas jury waiting for the 12-person panel to render its verdict in a three-year-long litigation that almost died before trial.
Jurors deliberated for three hours and now had their decision: BBVA Compass Bank and one of its executives had committed fraud and owed Bagwell $98 million in damages.
“It was the first time that I’ve ever seen David speechless,” Boyd told The Texas Lawbook. “David has been dealing with this fraud for several years and I am just so glad to see him finally get justice.
“We are thrilled with the jury’s verdict, which we believe was measured and reasonable, but we know there’s still a long way to go because we know the bank is going to appeal,” Boyd said.
Bagwell originally sued BBVA Compass and bank executive Sam Meade in 2014, claiming that the bank repeatedly misled him into believing his loans for developing three luxury subdivisions in Colleyville would be renewed in 2010.
Instead, the lawsuit claims that BBVA Compass secretly sold the loans at a discount to Bagwell’s competitor, who had a personal friendship with bank executives. The competitor then foreclosed on Bagwell, who was forced to declare bankruptcy.
Lawyers for BBVA Compass argued that Bagwell’s notes expired, that he did not repay the loans and that the bank had every right to sell the notes to a third party to recover its losses.
The trial court in Dallas originally ruled for BBVA Compass and dismissed the lawsuit, but the Dallas Court of Appeals reversed in 2016.
Boyd said the outcome of the trial turned on the introduction of the bank’s internal documents and executives’ emails.
“Once we got into the bank’s private files and the emails, we were able to prove that David’s story was true,” Boyd said. “The emails were key to our winning the trial more than any specific witness.”
After five days of testimony, the eight-woman, four-man jury awarded Bagwell $28 million in actual damages and $10 million for the mental anguish he suffered. The jury also awarded $20 million to business entities related to Bagwell.
Jurors also ordered BBVA Compass to pay $40 million in punitive damages.
Lawyers for BBVA Compass did not respond to requests for comment. Bank officials told the Dallas Morning News that the verdict is “unfair” and that it plans to appeal.
Boyd, who is a partner at Boyd, Powers & Williamson in Decatur, said the jury award is the largest of his career. Other lawyers representing Bagwell are Kristy Campbell and Matt Meyer of Boyd Powers, appellate counsel Jeffrey Levinger and Dallas attorney Jeffrey T. Hall.