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NO. 2013-41273
OSAMA ABDULLATIF, Individual IN THE DISTRICT COURT OF
and ABDULLATIF & COMPANY, LLC.
VS. HARRIS COUNTY, TEXAS
ALI CHOUDHRI and HOUSTON REAL
ESTATE PROPERTIES, LLC. 270 JUDICIAL DISTRICT
DEFENDANTS’ MOTION FOR CONTINUANCE OR, ALTERNATIVELY,
MOTION FOR LEAVE TO FILE COUNTERCLAIM
COMES NOW, Defendants, Ali Choudhri and Houston Real Estate Properties, LLC, and
file this Motion for Continuance or, Altematively, Motion for Leave to File Counterclaim, and
would respectfully show as follows:
INTRODUCTION
This case is currently scheduled forjury trial to begin on January 12, 2015 at 9:00
am
Good cause exists for this continuance because controlling issues in this case are
already pending in the 190th District Court. In addition, the parties are already scheduled
to
appear in the 190 District Court on January 14, 2015 a trial on attomeys’ fees, as well as
hearings on Motions for Receivership filed by both sides. In order to understand the unique
procedural posture of this case, it is necessary to briefly explain the litigation history of the
parties as it pertains tothis case.
CONTROLLING ISSUES WERE PENDING IN
THE 190TH WHEN THIS SUIT WAS FILED
After the 2011 global settlement agreement unraveled, the 190th District Court
became the epicenter of contentious litigation between Osama Abdullatif (“Albdullatif”) and Ali
Choudhri (“Choudhri”). One of the disputed transactions in the 190th District Court involved
the transfer of certain properties from HREP and Choudhri to Abdullatif. Choudhri received a
$1.5 million promissory note executed by Abdullatif as part of the consideration for the transfer
of the Houston Real Estate Properties, LLC (“HREP”) properties.Abdullatif claims that he
signed the document, but that there were “other documents” attached that mysteriously
disappeared. In his pleadings
in the 90th case , Choudhri has sued on the 1.5 million dollar
promissory note, and Abdullatif responded with allegations of fraud.
Because the issues in the 270th District Court were largely being pursued in the
190th District Court, the cases were consolidated for discovery purposes on January 14, 2014.
However, at that time, Judge Kerrigan deferred her ruling on consolidating the two (2) cases for
trial.
Most recently, in the hearing before Judge Kenigan on Choudhri’s Motion to
Consolidate the 270th into the 10th for all purposes, including trial, counsel for Abdullatif
represented
to Jude Kerrigan that the case in the 270th only dealt with a “fraudulent lien,” and
that the issues
in the 190th were “separate”. This representation
that the 270th is based solely on
“fraudulent lien’ is simply not accurate. Abdullatif has brought affirmative claims of statutory
fraud against Choudhri and HREP in the 270th, which mirror the defensive position taken by
Abdullatif in response to Choudhri’s counterclaim on the 1.5 million dollar promissory note.
Based on counsel for Abdullatif’s representations and Judge Kenigan’s expressed
intent not to interfere with a scheduled trial date in another district court, the Motion to
Consolidate was “denied at this time” to be reconsidered
if this case does not go to trial
The current posture of this case presents a procedural dilemma
while these cases
are not consolidated and the promissory note issues are pending in the 190th District Court If
Choudhri’s promissory note is enforceable, which is already the subject of a partial motion for
summary judgment in the 190th, then there can be no “fraudulent
lien” or slander
of title claims.
The lien filed by Choudhri, which is the subject
of the 270th suit, emanates from the promissory
note debt, and the implied vendor's lien that arises by operation of law to secure payment of the
promissory note. There is no way to sever or to extricate the promissory
note debt as a defense
against Abdullatif’s claim of a fraudulent lien or slander of title The two issues are
“inextricably intertwined,” which then necessarily leads to potential complications of collateral
estoppel/res judicata preclusive effect.
RELIEF REQUESTED
In denying Choudhri’s Motion to Consolidate this case into the 190th case, Judge
Kerrigan noted that this case was set on this Court’s docket, and wisely did not want to interfere
with this Court’s setting. Therefore, in order to avoid inconsistent remedies, and in the interests
of judicial economy and full and fair resolution of the disputed issues, Choudhri and HREP
request the following:
GRANT this Motion for Continuance so that the Motion to Consolidate this case into
the 190th case can be heard without interfering with this Court’s docket, or
altematively,
GRANT Choudhri and HREP leave to file a counterclaim raising its affirmative
Claims arising from the promissory note signed by Abdullatif, which are currently
pending
in the 190th case.
It is movant’s belief that granting
a continuance is the most expeditious and fair way to resolve
this procedural dilemma created by competing claims in two different courts.
This Motion for Continuance is not sought for purposes of delay, but only that
justice
may be done.
Counsel for movant has conferred with Mr. Goldstein, counsel for Abdullatif, and
at the time of this filing the parties are still discussing
whether Plaintiff will agree
or oppose the
Motion for Continuance.
Respectfully submitted,
Mike O’Brien
IKE O’ BRIENP.C.
State Bar No. 15170200
14355 Highway 105
Washington, TX 77880
(713) 222
(713) 222 0888 Fax
mike@moblaw.com
Chris Di Ferrante
State Bar No. 05858800
402 East 11 Street
Houston, TX 77008
(713) 868
(713) 868 1899 Fax
chris@cdflaw.com
ATTORNEY FOR DEFENDANTS
CERTIFICATE OF SERVICE
The undersi certifies that a true and correct copy of the foregoing wes
delivered
to all counsel of record at the addresses below in accordance with the Texas Rules of
Civil Procedureon the 7thday of January
Allan D. Goldstein (allan_@mlhs.net Counsel for Plaintiffs, Osama Abdullatif
James D. Salyer (jsalyer@mlhs.net and Abdullatif & Company, LLC
Mons, Lendais, Hollrah & Snowden.
1980 Post Oak Blvd., Suite 700
Houston, TX 77056
Fax: 713.966.7230
Mike O’Brien
STATE OF TEXAS §
COUNTY OF HARRIS §
BEFORE ME, the undersigned authority, on this day personally appeared MIKE
O*BRIEN, who, after being duly sworn, states upon his oath that he is the attorney of record for
Ali Choudhri and Houston Real Estate Properties, LLC, Defendants in the above-entitled and
numbered cause of action, and as such, is authorized to make this affidavit, that he prepared the
foregoing Motion and that the statements therein contained are true and correct.
O’BRIEN
do Deane) OMS
GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS —
1 day ofDecember, 2014
NOTARY PUBLIC
STATE OF TEXAS
ey
ne Brenda Moyle
8 My Commission Expires
NY cr ta 06/09/2016
Preview
NO. 2013-41273 OSAMA ABDULLATIF, Individual IN THE DISTRICT COURT OF and ABDULLATIF & COMPANY, LLC. VS. HARRIS COUNTY, TEXAS ALI CHOUDHRI and HOUSTON REAL ESTATE PROPERTIES, LLC. 270 JUDICIAL DISTRICT DEFENDANTS’ MOTION FOR CONTINUANCE OR, ALTERNATIVELY, MOTION FOR LEAVE TO FILE COUNTERCLAIM COMES NOW, Defendants, Ali Choudhri and Houston Real Estate Properties, LLC, and file this Motion for Continuance or, Altematively, Motion for Leave to File Counterclaim, and would respectfully show as follows: INTRODUCTION This case is currently scheduled forjury trial to begin on January 12, 2015 at 9:00 am Good cause exists for this continuance because controlling issues in this case are already pending in the 190th District Court. In addition, the parties are already scheduled to appear in the 190 District Court on January 14, 2015 a trial on attomeys’ fees, as well as hearings on Motions for Receivership filed by both sides. In order to understand the unique procedural posture of this case, it is necessary to briefly explain the litigation history of the parties as it pertains tothis case. CONTROLLING ISSUES WERE PENDING IN THE 190TH WHEN THIS SUIT WAS FILED After the 2011 global settlement agreement unraveled, the 190th District Court became the epicenter of contentious litigation between Osama Abdullatif (“Albdullatif”) and Ali Choudhri (“Choudhri”). One of the disputed transactions in the 190th District Court involved the transfer of certain properties from HREP and Choudhri to Abdullatif. Choudhri received a $1.5 million promissory note executed by Abdullatif as part of the consideration for the transfer of the Houston Real Estate Properties, LLC (“HREP”) properties.Abdullatif claims that he signed the document, but that there were “other documents” attached that mysteriously disappeared. In his pleadings in the 90th case , Choudhri has sued on the 1.5 million dollar promissory note, and Abdullatif responded with allegations of fraud. Because the issues in the 270th District Court were largely being pursued in the 190th District Court, the cases were consolidated for discovery purposes on January 14, 2014. However, at that time, Judge Kerrigan deferred her ruling on consolidating the two (2) cases for trial. Most recently, in the hearing before Judge Kenigan on Choudhri’s Motion to Consolidate the 270th into the 10th for all purposes, including trial, counsel for Abdullatif represented to Jude Kerrigan that the case in the 270th only dealt with a “fraudulent lien,” and that the issues in the 190th were “separate”. This representation that the 270th is based solely on “fraudulent lien’ is simply not accurate. Abdullatif has brought affirmative claims of statutory fraud against Choudhri and HREP in the 270th, which mirror the defensive position taken by Abdullatif in response to Choudhri’s counterclaim on the 1.5 million dollar promissory note. Based on counsel for Abdullatif’s representations and Judge Kenigan’s expressed intent not to interfere with a scheduled trial date in another district court, the Motion to Consolidate was “denied at this time” to be reconsidered if this case does not go to trial The current posture of this case presents a procedural dilemma while these cases are not consolidated and the promissory note issues are pending in the 190th District Court If Choudhri’s promissory note is enforceable, which is already the subject of a partial motion for summary judgment in the 190th, then there can be no “fraudulent lien” or slander of title claims. The lien filed by Choudhri, which is the subject of the 270th suit, emanates from the promissory note debt, and the implied vendor's lien that arises by operation of law to secure payment of the promissory note. There is no way to sever or to extricate the promissory note debt as a defense against Abdullatif’s claim of a fraudulent lien or slander of title The two issues are “inextricably intertwined,” which then necessarily leads to potential complications of collateral estoppel/res judicata preclusive effect. RELIEF REQUESTED In denying Choudhri’s Motion to Consolidate this case into the 190th case, Judge Kerrigan noted that this case was set on this Court’s docket, and wisely did not want to interfere with this Court’s setting. Therefore, in order to avoid inconsistent remedies, and in the interests of judicial economy and full and fair resolution of the disputed issues, Choudhri and HREP request the following: GRANT this Motion for Continuance so that the Motion to Consolidate this case into the 190th case can be heard without interfering with this Court’s docket, or altematively, GRANT Choudhri and HREP leave to file a counterclaim raising its affirmative Claims arising from the promissory note signed by Abdullatif, which are currently pending in the 190th case. It is movant’s belief that granting a continuance is the most expeditious and fair way to resolve this procedural dilemma created by competing claims in two different courts. This Motion for Continuance is not sought for purposes of delay, but only that justice may be done. Counsel for movant has conferred with Mr. Goldstein, counsel for Abdullatif, and at the time of this filing the parties are still discussing whether Plaintiff will agree or oppose the Motion for Continuance. Respectfully submitted, Mike O’Brien IKE O’ BRIENP.C. State Bar No. 15170200 14355 Highway 105 Washington, TX 77880 (713) 222 (713) 222 0888 Fax mike@moblaw.com Chris Di Ferrante State Bar No. 05858800 402 East 11 Street Houston, TX 77008 (713) 868 (713) 868 1899 Fax chris@cdflaw.com ATTORNEY FOR DEFENDANTS CERTIFICATE OF SERVICE The undersi certifies that a true and correct copy of the foregoing wes delivered to all counsel of record at the addresses below in accordance with the Texas Rules of Civil Procedureon the 7thday of January Allan D. Goldstein (allan_@mlhs.net Counsel for Plaintiffs, Osama Abdullatif James D. Salyer (jsalyer@mlhs.net and Abdullatif & Company, LLC Mons, Lendais, Hollrah & Snowden. 1980 Post Oak Blvd., Suite 700 Houston, TX 77056 Fax: 713.966.7230 Mike O’Brien STATE OF TEXAS § COUNTY OF HARRIS § BEFORE ME, the undersigned authority, on this day personally appeared MIKE O*BRIEN, who, after being duly sworn, states upon his oath that he is the attorney of record for Ali Choudhri and Houston Real Estate Properties, LLC, Defendants in the above-entitled and numbered cause of action, and as such, is authorized to make this affidavit, that he prepared the foregoing Motion and that the statements therein contained are true and correct. O’BRIEN do Deane) OMS GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS — 1 day ofDecember, 2014 NOTARY PUBLIC STATE OF TEXAS ey ne Brenda Moyle 8 My Commission Expires NY cr ta 06/09/2016