Did you know a $3 million judgment in Oklahoma City recently followed Phil Herrington back to Little Rock?
The judgment was registered in Pulaski County Circuit Court against Herrington along with his Herrington Inc. and Gaillardia Development Co. LLC.
The judgment represents the outstanding balance on a $4 million loan from First Commercial Bank of Edmond, Oklahoma.
The 2012 loan was supposed to finance a 5.17-acre upscale residential development at the Gaillardia Golf & Country Club in Oklahoma City.
However, that nine-lot project called Cottages of Gaillardia never happened. The property wasn’t zoned properly, and the Gaillardia members strongly opposed the project.
Most of the FCB loan was used to repay a $3 million loan from Little Rock’s One Bank & Trust.
In its initial complaint, First Commercial alleged fraud against Herrington and Michael Heald, former senior EVP and COO at One Bank who became chief operating officer for Herrington.
The fraud allegations eventually fell by the wayside along with Heald’s listing as a defendant.
First Commercial landed a $3.7 million judgment against Herrington in June. The bank recovered the undeveloped land on the west side of the palatial 55,000-SF Gaillardia clubhouse at a $770,250 foreclosure sale in September.
The bank assigned the judgment against Herrington et al in October to Timberdell Road Group LLC.
The venture, representing a group of Oklahoma City investors, is scouring the land for Herrington assets to claim against the remaining $3 million judgment.
Liquidating Assets
In November, Phil and Annette Herrington sold their 6,151-SF home near the Pleasant Valley Country Club in west Little Rock for $1.3 million.
That was preceded by an Oct. 18-20 sale of art and antiques at their home.
The sales were held weeks ahead of Timberdell launching its search for Herrington assets in Pulaski County.
Two years ago, we told you about Herrington’s troubled ownership of Gaillardia, with its 275-acre golfing spread and 7,240-yard championship course. Herrington was ousted from operational control of the northwest Oklahoma City club amid accusations of mismanagement and later from ownership of Gaillardia.
You might recall that Herrington bought the club in December 2002 as part of a $9.1 million deal with OPUBCO Development Co., led by Christine Gaylord Everest.