Schwyhart’s Motion Denied; Ordered to Return Fixtures

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A judge on Oct. 12 denied Bill Schwyhart’s bid to void the auction sale of 10 buildings he once managed at Pinnacle Point and ordered him to return TVs, appliances and other items he took while vacating the offices.

The judge also rendered judgment against Pinnacle Point Properties LLC for more than $168,000 in rent the company collected during foreclosure proceedings but did not pay to Metropolitan National Bank of Little Rock, the primary lender on the properties.

The orders came from Benton County Circuit Judge Doug Schrantz, who listened for more than five hours to sometimes conflicting testimony from witnesses and arguments among Schwyhart’s lawyers, lawyers representing Metropolitan National Bank and a lawyer representing DeWitt Smith, Pinnacle Point’s court-appointed receiver.

Johnelle Hunt and Tim Graham, principals of Hunt Ventures LLC, which purchased the 10 Pinnacle Point buildings at auction on Sept. 28, were present.

After Schrantz’s ruling was read, Schwyhart was overheard asking his legal team how to appeal. He later declined to talk with media, saying he wanted to digest the day’s events first.

Schwyhart’s lawyer, Hall-Estill partner Robert Rhoads, opposed the auction sale of 10 buildings, which Metropolitan foreclosed on in September. The team argued that the sale price of $24.1 million was too low.

Bill Watkins, a Rogers lawyer representing the receiver, argued that fixtures taken by Schwyhart when he left the building at 5413 Pinnacle Point Drive were part of the mortgage agreement and therefore should have been left.

In the end, Schrantz agreed and gave Schwyhart 72 hours to return property that had been taken from the office.

There’s been a lot of “dancing on the head of the pin about piercing the corporate veil,” Schrantz said.

“I’ve heard on one hand when we want to pick up some money, we create invoices and when we want to take property, conveniently there are no invoices,” Schrantz said.

Schrantz pointed out the argument earlier in the day that “$30 million could be raised for purchase,[of the Pinnacle Point properties], but he can’t pay his own electric bill.”