Combs Counters

In what has become common practice in Northwest Arkansas, Springdale developer Gary Combs has filed a lawsuit.

Well, a counterclaim actually, against The Bank of Fayetteville, which filed a suit against Combs and a couple of his LLCs in July seeking $5.5 million in unpaid principal and interest on Dead Horse Mountain and Electric Avenue Carwash. 

Combs’ complete amended and restated counterclaim was filed in Washington County Circuit Court on Nov. 5.

The counter suit alleges misconduct on behalf of Bob King, Combs’ loan officer at BOF, claiming that he did not take a request for an extension on a loan to BOF’s directors loan committee and was therefore in violation of the bank’s loan policy.

The committee was to meet on July 10, but the suit was filed on July 6, the paperwork claims.

Bank directors Larry Baggett, Woody Bassett, Bob Daugherty, Frank Kelly, David McClinton, Ann Russo, Curtis Shipley, Kent Starr and the bank’s CEO Mary Beth Brooks are also named as defendants on the countersuit.

“The individual director defendants had a duty to diligently and prudently supervise BOF’s employees …” the suit states.

Combs’ side says the bank directors breached their duty to Combs “and damages have occurred as a direct and proximate result … in excess of $150,000,000.”

That’s right, seven zeros, $150 million.

By our count, Combs is 2-1 this year. That is, two multi-million dollar settlements with banks and a $1 million loss against former business partner John Horne, who sued Combs earlier this year.

We’ll keep you posted on this one.