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Filed 13J uly 15 P12:24
Chris Daniel - District Clerk
201 3-412
AUSE
73 / Court. 270
Harris Coun!
ED101) 017595168
By: Nelson Cuero
OSAMA ABDULLATIF, individually, IN THE DISTRICT COURT
and ABDULLATIF & COMPANY, LLC,
Plaintiffs,
vs. JUDICIAL DISTRICT
ALI CHOUDHRI and HOUSTON REAL,
ESTATE PROPERTIES, LLC,
Defendants. HARRIS COUNTY, TEXAS
Plaintiffs’ Original Petition
TO THE HONORABLE JUDGE OF SAID COURT:
Plaintiffs, Osama Abdullatif (“Latif”) and Abdullatif & Company, LLC (ACLLC”)
(Latif and ACLLC are sometimes collectively referred herein as “Plaintiffs”), complain of
Defendants, Ali Choudhri (“Ali”) and Houston Real Estate Properties, LLC (“HREP”) (Choudhri
and HREP are sometimes collectively referred to as “Defendants”) as follows:
Parties & Service
1 Plaintiff Latif is an individual residing and doing business in Harris County,
Texas; and Plaintiff ACLLC is a limited liability company located in Harris County, Texas.
2. Defendant Ali is an individual residing and doing business in Harris County,
Texas and may be served at his business address 2500 West Loop South, Suite 255, Houston,
Texas 77027.
3 Defendant HREP is a limited liability company registered and doing business in
Harris County, Texas, and may be served with process by serving its registered agent for service
of process, Shahnaz Choudhri, 2500 West Loop South, Suite 255 Houston, Texas 77027; or, by
serving its managing member, Ali Choudhri, at his business address 2500 West Loop South,
Suite 255, Houston, Texas 77027.
Discovery Plan and Venue
4. Pursuant to Texas Rules of Civil Procedure 190.1, Plaintiffs submit that discovery
in this lawsuit should be conducted under Level 2. Venue is proper in Harris County, Texas as
all parties reside in Harris County, Texas and the causes of action arose or occurred in Harris
County.
Bankground Facts
5 Ali Choudhri, along with his father, mother and three (3) other members had an
interest in an entity known as Houston Real Estate Properties LLC (“HREP”). HREP was
formed on or about March 29, 2009 with Shahnaz Choudhri as its managing member. Shahnaz
is Ali’s mother. Shortly, thereafter, Naeem Choudhri became the managing member, replacing
Shahnaz. Naeem is Ali’s father. HREP acquired the properties listed on Exhibit A. On or
about May 5, 2009 HREP filed bankruptcy. The bankruptcy was terminated on or about
December 28, 2009.
6 Purportedly effective on or about September 25, 2009, these properties were
pledged by HREP for the benefit of Sterling Bank-to secure the repayment of a Combination,
Modification, Renewal and Extension of Promissory Notes and Liens in the principal amount of
One Million, Forty Thousand and no/100 Dollars ($1,040,000.00) (the “Sterling Note”). Ali
and his father gave an unlimited full guarantee of the. Sterling Note, and other members of
HREP, gave limited guarantees of the Sterling Note in the respective amounts shown below:
Naeem Choudhri Unlimited/Full Guarantee
Ali Choudhri Unlimited/Full Guarantee
Parvin Latimore $138,000.00
Damian Latimore $224,250.00
Ramesh Shah $105,100.00
2
7
The Sterling Note had a provision in it that allowed for a 15% discount on the
payment of the principal owed on the Sterling Note if it was paid in full by November 30, 2009.
The 15% discount was also available if paid in full by December 15, 2009 provided that, if, on or
before November 30, 2009, a non-refundable payment of $50,000 was paid to Sterling Bank.
8 Ali knew that Latif was a real estate investor and had purchased and invested in a
number of real estate properties in the greater Houston area. At the time HREP filed for
bankruptcy and as Defendants attempted to deal with the Sterling Note, Latif, Ali and his father
were friends. They all worshiped together at the same mosque. They socialized with their
families. Ali told Latif that the Sterling Note could be purchased at a 15% discount. Further,
Ali told Latif that Ali could not purchase the Sterling Note himself before the deadline provided
in the Sterling Note because he was traveling to Pakistan to get married. Ali and his father
asked Latif to purchase the Sterling Note at the 15% discount and asserted they would quickly
sell some of the properties to pay off the full amount of the Sterling Note and would pay Latif
half of the 15% savings. Ali and his father, on behalf of HREP, misrepresented their true
intentions to the detriment of Latif. Defendants induced Latif to purchase the Sterling Note at a
discount but had no intention of selling the properties; instead, they needed Latif’s help to save
the properties from foreclosure and they intended to saddle Latif with the burden of carrying the
properties.
9 On or about December 15, 2009, Latif purchased the Sterling Note for
$837,894.78.. HREP then made payments to Latif for the December 2009 and January 2010 note
payments. Having saddled Latif with the burden of carrying the properties, Defendants
convinced Latif that they would sell the properties to him so he could refinance the amounts
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owed and that they would continue to pay the indebtedness while managing and collecting the
rents. On or about February 10, 2010, HREP sold the properties to Latif for $1,750,000.00
which was partially financed by a $1,100,000.00 loan from Lone Star Bank. The closing also
included the payment of past due taxes in excess of $90,000.00 and cash to HREP of
$552,972.93, plus an additional $50,000.00 paid outside of closing from Latif to HREP and/or
Sterling Bank.
10. Ali and Latif agreed that Ali and/or HREP would be responsible for paying the
Lone Star Bank loan and the taxes owed on the properties, and that HREP would be allowed to
collect and rent the properties. From February 2010 until February 2011, Ali arranged for, on an
irregular basis, to pay Latif the monthly amounts owed to Lone Star Bank. Further, the 2010
taxes owed on the properties were paid by or on behalf of HREP, although Chicago Title had to
bring a lawsuit to compel Ali to honor his indemnity to pay some of the taxes that were owed.
11. Since March 2011, Defendants have refused to make any payments to Latif and in
deposition testimony in another lawsuit Ali stated he had no objection to Latif selling the
properties so that the Lone Star Bank note could be paid off and past due taxes paid. Latiff has
made the tax payments for 2011. Realizing that Ali and HREP were refusing to honor any
agreement they had with respect to the properties, Latif decided to sell the properties in order to
mitigate his losses from the misrepresentations made by Defendants. Further, on information
and belief, from March 2011 until the present, HREP and/or Ali continue to collect rent from
some of the properties.
12. After evicting a tenant at 1951 Richmond who claimed he could remain in the
property under an agreement with Ali, Latif listed the property for sale. Also, Latif listed the
4~
Greenbriar property for sale and subsequently Latif entered into an agreement to sell the
Greenbriar property. Before the property could be closed, however, Ali filed an Affidavit as to
Lien on Properties Pursuant to Promissory Note. (“Bogus Lien Affidavit”). A true and correct
copy of the Bogus Lien Affidavit is attached hereto and incorporated by reference as Exhibit B.
13. The Bogus Lien Affidavit is a cloud on the title to Latif’s properties purchased
from HREP. Additionally, the Bogus Lien Affidavit purports to claim a lien on property located
at 5445 Almeda Road in Houston, Texas. The Almeda Road property was never owned by
HREP or Ali and is and has been owned by ACLLC. There is no consideration for the
underlying promissory note Ali claims is owed to him by Latif, and there is no legal or statutory
basis for the claiming of a lien on any of the properties. Accordingly, the Bogus Lien Affidavit
is a fraudulent lien claim or claim against real properties. Ali filed the Bogus Lien Affidavit
with the intent to slander the title of properties held in legal title by Latif and with the intent to
cause financial injury, mental anguish or emotional distress to Latif.
Cause of Action for Fraudulent Lien or Claim Against Real Property
14, Based on the foregoing acts and conduct, Defendants are liable to Plaintiffs
pursuant to Chapter 12 of the Texas Civil Practices and Remedies Code and pursuant to Chapter
51 of the Texas Government Code. Plaintiffs are entitled to recover the greater of their actual
damages or $10,000.00 per property, court costs, reasonable attorney fees, and exemplary
damages in an amount to be determined by the Court.
Cause of Action for Slander of Title and to Quiet Title
15. Based on the foregoing acts and conduct, Defendants are liable to Plaintiffs as a
result of filing a fraudulent lien or claim against real properties. Defendants uttered and
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published a disparaging written statement about the state of Plaintiffs’ title to the properties
identified on the Bogus Lien Claim at Exhibit B of this Petition. The statement was false
because Ali was not owed any funds by Plaintiffs nor were the properties pledged as liens to
secure any amounts allegedly owed to Ali. Ali’s false statement caused injury to Plaintiffs,
which resulted in damages in excess of the jurisdictional limits of the Court. Ali’s false
statement was published with legal malice, which entitles Plaintiffs to exemplary damages.
16. Based on the foregoing acts and conduct of Defendants, they are liable to
Plaintiffs and the Court should quiet title to the properties identified in the Bogus Lien Affidavit
as to Latif and as to ACLLC (for the Almeda property) as against any claims of Defendants to
title or for any liens against such properties.
Cause of Action for Fraud in a Real Estate Transaction
17. Based on the foregoing acts and conduct of Defendants, Plaintiffs are entitled to
recover their actual damages, attorney fees and costs of court as a result of the misrepresentations
and fraudulent conduct of Defendants that has caused damages to Plaintiffs.
Request for Disclosures
18. Pursuant to Rule 194 of the Texas Rules of Civil Procedure, Plaintiffs request that
Defendants disclose within fifty (50) days of service of this Petition and accompanying request,
any and all information or material described in Rule 194.2(a)-(1).
WHEREFORE, Plaintiffs request that the Defendants be cited to appear and answer, and
that on final trial, Plaintiffs have:
a. Relief sought pursuant to the allegations stated above;
b, Costs of suit;
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C. Reasonable attorney's fees for trial and appeal; and
d. Such other and further relief to which Plaintiffs may be justly entitled.
Respectfully submitted,
Morais, LENDAIS, HOLLRAH & SNOWDEN
By:
an D. Goldstein.
State Bar No. 08097950
James D, Salyer
State Bar No. 17549690
1980 Post Oak Boulevard, Suite 700
Houston, Texas 77056
(713) 966-7200 telephone
(713) 966-7230 telecopier
allan@mlhs.net
jsalyer@mlhs.net
Attorneys for Plaintiffs
T+
Preview
Filed 13J uly 15 P12:24 Chris Daniel - District Clerk 201 3-412 AUSE 73 / Court. 270 Harris Coun! ED101) 017595168 By: Nelson Cuero OSAMA ABDULLATIF, individually, IN THE DISTRICT COURT and ABDULLATIF & COMPANY, LLC, Plaintiffs, vs. JUDICIAL DISTRICT ALI CHOUDHRI and HOUSTON REAL, ESTATE PROPERTIES, LLC, Defendants. HARRIS COUNTY, TEXAS Plaintiffs’ Original Petition TO THE HONORABLE JUDGE OF SAID COURT: Plaintiffs, Osama Abdullatif (“Latif”) and Abdullatif & Company, LLC (ACLLC”) (Latif and ACLLC are sometimes collectively referred herein as “Plaintiffs”), complain of Defendants, Ali Choudhri (“Ali”) and Houston Real Estate Properties, LLC (“HREP”) (Choudhri and HREP are sometimes collectively referred to as “Defendants”) as follows: Parties & Service 1 Plaintiff Latif is an individual residing and doing business in Harris County, Texas; and Plaintiff ACLLC is a limited liability company located in Harris County, Texas. 2. Defendant Ali is an individual residing and doing business in Harris County, Texas and may be served at his business address 2500 West Loop South, Suite 255, Houston, Texas 77027. 3 Defendant HREP is a limited liability company registered and doing business in Harris County, Texas, and may be served with process by serving its registered agent for service of process, Shahnaz Choudhri, 2500 West Loop South, Suite 255 Houston, Texas 77027; or, by serving its managing member, Ali Choudhri, at his business address 2500 West Loop South, Suite 255, Houston, Texas 77027. Discovery Plan and Venue 4. Pursuant to Texas Rules of Civil Procedure 190.1, Plaintiffs submit that discovery in this lawsuit should be conducted under Level 2. Venue is proper in Harris County, Texas as all parties reside in Harris County, Texas and the causes of action arose or occurred in Harris County. Bankground Facts 5 Ali Choudhri, along with his father, mother and three (3) other members had an interest in an entity known as Houston Real Estate Properties LLC (“HREP”). HREP was formed on or about March 29, 2009 with Shahnaz Choudhri as its managing member. Shahnaz is Ali’s mother. Shortly, thereafter, Naeem Choudhri became the managing member, replacing Shahnaz. Naeem is Ali’s father. HREP acquired the properties listed on Exhibit A. On or about May 5, 2009 HREP filed bankruptcy. The bankruptcy was terminated on or about December 28, 2009. 6 Purportedly effective on or about September 25, 2009, these properties were pledged by HREP for the benefit of Sterling Bank-to secure the repayment of a Combination, Modification, Renewal and Extension of Promissory Notes and Liens in the principal amount of One Million, Forty Thousand and no/100 Dollars ($1,040,000.00) (the “Sterling Note”). Ali and his father gave an unlimited full guarantee of the. Sterling Note, and other members of HREP, gave limited guarantees of the Sterling Note in the respective amounts shown below: Naeem Choudhri Unlimited/Full Guarantee Ali Choudhri Unlimited/Full Guarantee Parvin Latimore $138,000.00 Damian Latimore $224,250.00 Ramesh Shah $105,100.00 2 7 The Sterling Note had a provision in it that allowed for a 15% discount on the payment of the principal owed on the Sterling Note if it was paid in full by November 30, 2009. The 15% discount was also available if paid in full by December 15, 2009 provided that, if, on or before November 30, 2009, a non-refundable payment of $50,000 was paid to Sterling Bank. 8 Ali knew that Latif was a real estate investor and had purchased and invested in a number of real estate properties in the greater Houston area. At the time HREP filed for bankruptcy and as Defendants attempted to deal with the Sterling Note, Latif, Ali and his father were friends. They all worshiped together at the same mosque. They socialized with their families. Ali told Latif that the Sterling Note could be purchased at a 15% discount. Further, Ali told Latif that Ali could not purchase the Sterling Note himself before the deadline provided in the Sterling Note because he was traveling to Pakistan to get married. Ali and his father asked Latif to purchase the Sterling Note at the 15% discount and asserted they would quickly sell some of the properties to pay off the full amount of the Sterling Note and would pay Latif half of the 15% savings. Ali and his father, on behalf of HREP, misrepresented their true intentions to the detriment of Latif. Defendants induced Latif to purchase the Sterling Note at a discount but had no intention of selling the properties; instead, they needed Latif’s help to save the properties from foreclosure and they intended to saddle Latif with the burden of carrying the properties. 9 On or about December 15, 2009, Latif purchased the Sterling Note for $837,894.78.. HREP then made payments to Latif for the December 2009 and January 2010 note payments. Having saddled Latif with the burden of carrying the properties, Defendants convinced Latif that they would sell the properties to him so he could refinance the amounts -3- owed and that they would continue to pay the indebtedness while managing and collecting the rents. On or about February 10, 2010, HREP sold the properties to Latif for $1,750,000.00 which was partially financed by a $1,100,000.00 loan from Lone Star Bank. The closing also included the payment of past due taxes in excess of $90,000.00 and cash to HREP of $552,972.93, plus an additional $50,000.00 paid outside of closing from Latif to HREP and/or Sterling Bank. 10. Ali and Latif agreed that Ali and/or HREP would be responsible for paying the Lone Star Bank loan and the taxes owed on the properties, and that HREP would be allowed to collect and rent the properties. From February 2010 until February 2011, Ali arranged for, on an irregular basis, to pay Latif the monthly amounts owed to Lone Star Bank. Further, the 2010 taxes owed on the properties were paid by or on behalf of HREP, although Chicago Title had to bring a lawsuit to compel Ali to honor his indemnity to pay some of the taxes that were owed. 11. Since March 2011, Defendants have refused to make any payments to Latif and in deposition testimony in another lawsuit Ali stated he had no objection to Latif selling the properties so that the Lone Star Bank note could be paid off and past due taxes paid. Latiff has made the tax payments for 2011. Realizing that Ali and HREP were refusing to honor any agreement they had with respect to the properties, Latif decided to sell the properties in order to mitigate his losses from the misrepresentations made by Defendants. Further, on information and belief, from March 2011 until the present, HREP and/or Ali continue to collect rent from some of the properties. 12. After evicting a tenant at 1951 Richmond who claimed he could remain in the property under an agreement with Ali, Latif listed the property for sale. Also, Latif listed the 4~ Greenbriar property for sale and subsequently Latif entered into an agreement to sell the Greenbriar property. Before the property could be closed, however, Ali filed an Affidavit as to Lien on Properties Pursuant to Promissory Note. (“Bogus Lien Affidavit”). A true and correct copy of the Bogus Lien Affidavit is attached hereto and incorporated by reference as Exhibit B. 13. The Bogus Lien Affidavit is a cloud on the title to Latif’s properties purchased from HREP. Additionally, the Bogus Lien Affidavit purports to claim a lien on property located at 5445 Almeda Road in Houston, Texas. The Almeda Road property was never owned by HREP or Ali and is and has been owned by ACLLC. There is no consideration for the underlying promissory note Ali claims is owed to him by Latif, and there is no legal or statutory basis for the claiming of a lien on any of the properties. Accordingly, the Bogus Lien Affidavit is a fraudulent lien claim or claim against real properties. Ali filed the Bogus Lien Affidavit with the intent to slander the title of properties held in legal title by Latif and with the intent to cause financial injury, mental anguish or emotional distress to Latif. Cause of Action for Fraudulent Lien or Claim Against Real Property 14, Based on the foregoing acts and conduct, Defendants are liable to Plaintiffs pursuant to Chapter 12 of the Texas Civil Practices and Remedies Code and pursuant to Chapter 51 of the Texas Government Code. Plaintiffs are entitled to recover the greater of their actual damages or $10,000.00 per property, court costs, reasonable attorney fees, and exemplary damages in an amount to be determined by the Court. Cause of Action for Slander of Title and to Quiet Title 15. Based on the foregoing acts and conduct, Defendants are liable to Plaintiffs as a result of filing a fraudulent lien or claim against real properties. Defendants uttered and -5- published a disparaging written statement about the state of Plaintiffs’ title to the properties identified on the Bogus Lien Claim at Exhibit B of this Petition. The statement was false because Ali was not owed any funds by Plaintiffs nor were the properties pledged as liens to secure any amounts allegedly owed to Ali. Ali’s false statement caused injury to Plaintiffs, which resulted in damages in excess of the jurisdictional limits of the Court. Ali’s false statement was published with legal malice, which entitles Plaintiffs to exemplary damages. 16. Based on the foregoing acts and conduct of Defendants, they are liable to Plaintiffs and the Court should quiet title to the properties identified in the Bogus Lien Affidavit as to Latif and as to ACLLC (for the Almeda property) as against any claims of Defendants to title or for any liens against such properties. Cause of Action for Fraud in a Real Estate Transaction 17. Based on the foregoing acts and conduct of Defendants, Plaintiffs are entitled to recover their actual damages, attorney fees and costs of court as a result of the misrepresentations and fraudulent conduct of Defendants that has caused damages to Plaintiffs. Request for Disclosures 18. Pursuant to Rule 194 of the Texas Rules of Civil Procedure, Plaintiffs request that Defendants disclose within fifty (50) days of service of this Petition and accompanying request, any and all information or material described in Rule 194.2(a)-(1). WHEREFORE, Plaintiffs request that the Defendants be cited to appear and answer, and that on final trial, Plaintiffs have: a. Relief sought pursuant to the allegations stated above; b, Costs of suit; -6- C. Reasonable attorney's fees for trial and appeal; and d. Such other and further relief to which Plaintiffs may be justly entitled. Respectfully submitted, Morais, LENDAIS, HOLLRAH & SNOWDEN By: an D. Goldstein. State Bar No. 08097950 James D, Salyer State Bar No. 17549690 1980 Post Oak Boulevard, Suite 700 Houston, Texas 77056 (713) 966-7200 telephone (713) 966-7230 telecopier allan@mlhs.net jsalyer@mlhs.net Attorneys for Plaintiffs T+