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NO. 2013-41273
OSAMA ABDULLATIF, Individually IN THE DISTRICT COURT OF
and ABDULLATIF & COMPANY, LLC.
ALI CHOUDHRI and HOUSTON REAL
§
§
§
vs. § HARRIS COUNTY, TEXAS
§
§
ESTATE PROPERTIES, LLC. §
270™ JUDICIAL DISTRICT
DEFENDANTS’ MOTION FOR CONTINUANCE AND TO ABATE THE CASE
Defendants Ali Choudhri and Houston Real Estate Properties, LLC file this Motion for
Continuance and to Abate the Case and would respectfully show as follows:
I.
INTRODUCTION
1. This case is currently scheduled for jury trial to begin on May 4, 2015 at 9:00 a.m.
2. Good cause exists for this request for trial continuance and to abate the case
because controlling issues in this case are already pending (and now on appeal) in Cause No.
2012-27197 with Judge Kerrigan in the 190th District Court. Last January, this Court granted a
continuance of the trial of this matter because common legal issues were pending in the 190"
District Court. That situation has not changed and still supports a continuance and abatement of
this case. On January 8, 2015 Judge Kerrigan issued an interlocutory judgment holding, among
other things, that Ali Choudhri owns an equal ownership with Osama Abdullatif in Mokaram
Latif West Loop, Ltd. A true and correct copy of the interlocutory judgment is attached as
Exhibit A. An interlocutory appeal has now been taken regarding Judge Kerrigan’s January 8,2015 decision. This case should be abated pending the outcome of that appeal as the issues
involved in the appeal will impact the claims asserted in this case. !
I.
CONTROLLING ISSUES IN THE 190TH ARE NOW PART OF AN
INTERLOCUATORY APPEAL
Bs In order to understand the procedural posture of this case and why it should be
abated, it is necessary to briefly explain the litigation history of the parties as it pertains to this
case. After a 2011 global settlement agreement between the parties unraveled, the 190th District
Court became the epicenter of contentious litigation between Osama Abdullatif (“Abdullatif”)
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 190th case, Choudhri has sued on the 1.5 million dollar
promissory note, and Abdullatif responded with allegations of fraud. Abdullatif then filed this
lawsuit against Choudhri and HREP asserting claims that are derivative from those already at
issue in the 190",
4. Because the issues in this lawsuit 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. In the
hearing before Judge Kerrigan on Choudhri’s Motion to Consolidate the 270th into the 190th for
all purposes, including trial, counsel for Abdullatif represented to Jude Kerrigan that the case in
* Judge Dorfman just recently agreed to abate another lawsuit between Abdullatif and Choudhri, Cause No. 2014-
24392, based upon the same grounds asserted herein.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 in the 190" on the 1.5 million dollar promissory note.
5: Based on counsel for Abdullatif’s representations and Judge Kerrigan’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.
6. 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 and
involved in the interlocutory appeal. 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 claims 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. This Court can solve
that problem by granting a continuance and abatement until the issue are resolved in the 190".
Il.
RELIEF REQUESTED
7 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 Courtcontinue the trial date of this matter and abate the case pending the outcome of the interlocutory
appeal of Judge Kerrigan’s Judgment. It is movant’s belief that granting a continuance and
abatement is the most expeditious and fair way to resolve this procedural dilemma created by
competing claims in two different courts.
8. This Motion for Continuance and to Abate the Case is not sought for purposes of
delay, but only that justice may be done.
Respectfully submitted,
GORANSONKING, PLLC
MARK D. GORANSON
State Bar No. 08192950
550 Westcott, Suite 415
Houston, Texas 77007
713.526.9200- Telephone
713.526.9202- Facsimile
goranson@goransonking.com
ATTORNEY FOR DEFENDANTSVERIFICATION
Before me, the undersigned authority, personally appeared Mark D. Goranson, who, on
oath, stated that the statements contained paragraphs 6-8 in the foregoing Motion for
Continuance are true and correct and based upon his own personal knowledge.
Subscribed and sworn to before me on April 21, 2015.
MICHELLE ANNETTE TUCKER yy LD DMC
My Commission Expires 5 2
dune 21, 2017 Michelle A. Tucker
Notary Public, State of TexasCERTIFICATE OF CONFERENCE
My attempt to contact opposing counsel by both email and telephone to determine if he
opposes this Motion have been unsuccessful. Therefore, I assume he is opposed to this Motion.
a
Mark D. Goranson
CERTIFICATE OF SERVICE
The undersigned hereby certifies that a true and correct copy of the foregoing was
delivered to all counsel of record at the addresses below in accordance with the Texas Rules of
Civil Procedure on the 21,th.day of April, 2015.
Allan D. Goldstein (allang@mlhs.net) Counsel for Plaintiffs, Osama Abdullatif
James D. Salyer (jsalyer@mlhs.net) and Abdullatif & Company, LLC
Morris, Lendais, Hollrah & Snowden
1980 Post Oak Blvd., Suite 700
Houston, TX 77056
Fax: 713.966.7230
Q
. Goranson
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NO. 2013-41273 OSAMA ABDULLATIF, Individually IN THE DISTRICT COURT OF and ABDULLATIF & COMPANY, LLC. ALI CHOUDHRI and HOUSTON REAL § § § vs. § HARRIS COUNTY, TEXAS § § ESTATE PROPERTIES, LLC. § 270™ JUDICIAL DISTRICT DEFENDANTS’ MOTION FOR CONTINUANCE AND TO ABATE THE CASE Defendants Ali Choudhri and Houston Real Estate Properties, LLC file this Motion for Continuance and to Abate the Case and would respectfully show as follows: I. INTRODUCTION 1. This case is currently scheduled for jury trial to begin on May 4, 2015 at 9:00 a.m. 2. Good cause exists for this request for trial continuance and to abate the case because controlling issues in this case are already pending (and now on appeal) in Cause No. 2012-27197 with Judge Kerrigan in the 190th District Court. Last January, this Court granted a continuance of the trial of this matter because common legal issues were pending in the 190" District Court. That situation has not changed and still supports a continuance and abatement of this case. On January 8, 2015 Judge Kerrigan issued an interlocutory judgment holding, among other things, that Ali Choudhri owns an equal ownership with Osama Abdullatif in Mokaram Latif West Loop, Ltd. A true and correct copy of the interlocutory judgment is attached as Exhibit A. An interlocutory appeal has now been taken regarding Judge Kerrigan’s January 8,2015 decision. This case should be abated pending the outcome of that appeal as the issues involved in the appeal will impact the claims asserted in this case. ! I. CONTROLLING ISSUES IN THE 190TH ARE NOW PART OF AN INTERLOCUATORY APPEAL Bs In order to understand the procedural posture of this case and why it should be abated, it is necessary to briefly explain the litigation history of the parties as it pertains to this case. After a 2011 global settlement agreement between the parties unraveled, the 190th District Court became the epicenter of contentious litigation between Osama Abdullatif (“Abdullatif”) 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 190th case, Choudhri has sued on the 1.5 million dollar promissory note, and Abdullatif responded with allegations of fraud. Abdullatif then filed this lawsuit against Choudhri and HREP asserting claims that are derivative from those already at issue in the 190", 4. Because the issues in this lawsuit 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. In the hearing before Judge Kerrigan on Choudhri’s Motion to Consolidate the 270th into the 190th for all purposes, including trial, counsel for Abdullatif represented to Jude Kerrigan that the case in * Judge Dorfman just recently agreed to abate another lawsuit between Abdullatif and Choudhri, Cause No. 2014- 24392, based upon the same grounds asserted herein.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 in the 190" on the 1.5 million dollar promissory note. 5: Based on counsel for Abdullatif’s representations and Judge Kerrigan’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. 6. 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 and involved in the interlocutory appeal. 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 claims 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. This Court can solve that problem by granting a continuance and abatement until the issue are resolved in the 190". Il. RELIEF REQUESTED 7 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 Courtcontinue the trial date of this matter and abate the case pending the outcome of the interlocutory appeal of Judge Kerrigan’s Judgment. It is movant’s belief that granting a continuance and abatement is the most expeditious and fair way to resolve this procedural dilemma created by competing claims in two different courts. 8. This Motion for Continuance and to Abate the Case is not sought for purposes of delay, but only that justice may be done. Respectfully submitted, GORANSONKING, PLLC MARK D. GORANSON State Bar No. 08192950 550 Westcott, Suite 415 Houston, Texas 77007 713.526.9200- Telephone 713.526.9202- Facsimile goranson@goransonking.com ATTORNEY FOR DEFENDANTSVERIFICATION Before me, the undersigned authority, personally appeared Mark D. Goranson, who, on oath, stated that the statements contained paragraphs 6-8 in the foregoing Motion for Continuance are true and correct and based upon his own personal knowledge. Subscribed and sworn to before me on April 21, 2015. MICHELLE ANNETTE TUCKER yy LD DMC My Commission Expires 5 2 dune 21, 2017 Michelle A. Tucker Notary Public, State of TexasCERTIFICATE OF CONFERENCE My attempt to contact opposing counsel by both email and telephone to determine if he opposes this Motion have been unsuccessful. Therefore, I assume he is opposed to this Motion. a Mark D. Goranson CERTIFICATE OF SERVICE The undersigned hereby certifies that a true and correct copy of the foregoing was delivered to all counsel of record at the addresses below in accordance with the Texas Rules of Civil Procedure on the 21,th.day of April, 2015. Allan D. Goldstein (allang@mlhs.net) Counsel for Plaintiffs, Osama Abdullatif James D. Salyer (jsalyer@mlhs.net) and Abdullatif & Company, LLC Morris, Lendais, Hollrah & Snowden 1980 Post Oak Blvd., Suite 700 Houston, TX 77056 Fax: 713.966.7230 Q . Goranson