Feed the dogs in their crates at the same time with doors shut. Your poor little dog must be feeling terrorized by now. Tasty treats, bones, chews, etc. also need to be given to the dogs while in their crates with doors closed. Have their crates in different areas, so that the labradoodle doesn't intimidate the Papillon to the point where the little dog is afraid to eat even in the crate. Yes, this can happen.
Take away all toys for now, and get your labradoodle into obedience training ASAP. Play with the dogs completely separately, and crate the dog who isn't participating at the time. Only bring out a toy when you are directly playing with the dog.
This situation can escalate quickly and become very dangerous! It won't go away on its own. The labradoodle has already figured out that bullying is working...
Check into NILF (Nothing in Life is Free), which your labradoodle needs. Here's a link:
Nothing in Life is Free