Arvest Bank filed a new lawsuit against former bank president Dennis Smiley after asking the court to dismiss a different case.
The bank filed a complaint in Benton County Circuit Court on Monday claiming Smiley; his wife, Cynthia Smiley; and her business, Design for the Home, owe nearly $82,000 on a pair of loans they took out in September 2012.
At A Glance
Banks Settle
Arvest Bank named 20 banks in an interpleader lawsuit involving Dennis Smiley, former president of Arvest Bank of Benton County. Arvest claimed the named banks may try to claim all or part of the $551,754 it held from Smiley’s bank stock proceeds. Arvest asked Benton County Circuit Court to dismiss its case against all banks named in the lawsuit except for First State Bank of De Queen and Signature Bank. Banks dismissed from the case are:
• Bank of Oklahoma
• Bank of Fayetteville
• Bank of the Ozarks, Little Rock
• Benefit Bank, Fort Smith
• Chambers Bank, Danville
• Centennial Bank, Conway
• Delta Trust & Bank, Parkdale
• First Bank, Hampton
• First Federal Bank, Harrison
• First National Bank of Fort Smith
• Integrity First Bank
• First Security Bank, Searcy
• First State Bank, Lonoke
• First State Bank of NWA, Huntsville
• First State Bank, Russellville
• First Western Bank, Boonville
• Legacy National Bank, Springdale
• Summit Bank, Arkadelphia
Source: Staff Report
The court dismissed Arvest's interpleader suit on July 30 at the bank's request.
Dennis Smiley was president and chief executive officer of Arvest Bank of Benton County until suddenly resigning March 13.
Several banks have named Smiley, his wife and her business, and his father, Henry Dennis Smiley Sr. and a holding company they have together, HDS Holdings, in lawsuits claiming they haven't paid loans.
Arvest's interpleader filing stems from allegations by several banks Smiley pledged proceeds from his Arvest stock as collateral, something he wasn't permitted to do. The bank asked the court to hold $551,754, the total value of Smiley's Arvest stock options, and decide where the money goes.
Jason Kincy, Arvest spokesman, wouldn't say why the bank asked for the case to be dismissed against 18 of the 20 banks named in the interpleader, but court filings indicate the the parties settled.
The filings state each dismissed bank "affirms that is has no remaining interest in the interpleaded funds; and that all claims by and/or against the defendant have been fully and finally settled."
Several attorneys representing banks involved in the Smiley case declined to comment.
Tim Tarvin, associate law professor at the University of Arkansas Law School, said deductive reasoning implies the banks settled.
"Arvest has done some damage containment," he said.
He said the involved banks most likely agreed not to disclose settlement details.
Circuit Court Judge John Scott called a pretrial conference for 1:30 p.m. Sept. 18 in Room 208 of the Benton County Courthouse. A letter sent to attorneys in the case states Scott will decide pending motions and set the trial during the hearing.
Arvest's filing on Monday claims the Smileys took out loans for $40,000 and $50,000 on Sept. 27, 2012. The filing states Smiley secured the $40,000 loan with 682 shares of First State BancShares.
The total due on the notes was $81,719 as of May 20 with interest accruing daily.
Several banks have filed separate lawsuits against the Smileys. They include:
• First Security Bank claims Smiley, his wife, father and holding company owe $233,306 on loans worth $240,000 and claims he used his home at 56 Champions Blvd. in Rogers as collateral.
• First National Bank of Fort Smith claims Smiley used stock as collateral on a pair of loans totaling $196,285.
• Simmons First National Bank claims Smiley and Design for the Home owe $69,011 on three loans worth $146,282. Simmons states the Smileys used their house as collateral.
• Simmons also sued Smiley Sr. and HDS Holdings or $88,716. The elder Smiley has claimed in filing he didn't sign for loans taken out in the name of HDS Holdings.
• Delta Trust claims Smiley, his father and the holding company missed the initial payment on a $245,126 loan taken out on Feb. 20.
• First Federal claims HDS Holdings, Smiley Jr. and the elder Smiley owe $71,342 on two loans valued at $75,000.
• First State Bank names Smiley, Cynthia Smiley and her company, Design for the Home, as defendants in a case seeking $160,000.
• Bank of Fayetteville claims Smiley Jr. owes it $479,177 and an additional $215,012 loaned to HDS Holdings. The bank also claims Smiley Sr., owes $42,006.
NW News on 08/20/2014