Abrhim Enshikar v. Ahmad Zaid and Mazen Jumaa

CourtCourt of Appeals of Texas
DecidedOctober 22, 2020
Docket14-18-00933-CV
StatusPublished

This text of Abrhim Enshikar v. Ahmad Zaid and Mazen Jumaa (Abrhim Enshikar v. Ahmad Zaid and Mazen Jumaa) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abrhim Enshikar v. Ahmad Zaid and Mazen Jumaa, (Tex. Ct. App. 2020).

Opinion

Affirmed and Memorandum Opinion filed October 22, 2020.

In the

Fourteenth Court of Appeals

NO. 14-18-00933-CV

ABRHIM ENSHIKAR, Appellant

v. AHMAD ZAID AND MAZEN JUMAA, Appellees

On Appeal from the 281st District Court Harris County, Texas Trial Court Cause No. 2016-04438

MEMORANDUM OPINION

Appellant Abrhim Enshikar filed suit against appellees Ahmad Zaid and Mazen Jumaa in an effort to collect on an underlying judgment against Advance Tire and Wheels, LLC. After a bench trial, the trial court issued a final take-nothing judgment in favor of Zaid and Jumaa. On appeal, Enshikar brings 14 issues challenging the trial court’s findings of fact and conclusions of law supporting the judgment. We affirm. I. BACKGROUND

Zaid and Abu Alhalawh Jawad formed Advance Tire and Wheels, LLC (“Advance Tire”) in December 2010 as a Texas limited liability company. Advance Tire was in the business of selling and repairing tires and wheels. Enshikar began working for Advance Tire in March 2011. He suffered an injury on the job in January 2012.

In February 2012, Zaid and Jumaa signed a bill of sale of equipment. Zaid sold Jumaa “2 tire changers, 1 tire balancer and entire tire inventory (750 tires in total)” for $8,500.

In March 2012, Enshikar filed suit against Advance Tire for negligence. Advance Tire was the only defendant. The return of citation in the negligence suit is dated March 22, 2012. The next day, Zaid filed a certificate of termination of a domestic entity for Advance Tire. In October 2015, after a bench trial in the negligence suit, the trial court signed a final judgment in favor of Enshikar for $512,135.44 plus post-judgment interest at five percent (the “2015 judgment”). Enshikar was unable to collect the underlying judgment.

In January 2016, Enshikar filed suit against Zaid, Jawad, and Jumaa. Enshikar alleged that the defendants operated Advance Tire as a partnership and were vicariously liable for its debts. In the alternative, Enshikar alleged that Zaid operated Advance Tire as a sole proprietorship and was individually liable for its debts. Enshikar also alleged that the 2012 conveyance to Jumaa was fraudulent under the Uniform Fraudulent Transfer Act (UFTA). See Tex. Bus. & Com. Code Ann. §§ 24.005(a)(1), .006(a). Finally, Enshikar alleged that the defendants conspired to commit fraud.

Jawad was not served and did not appear. In June 2018, the trial court held a

2 bench trial. Zaid and Jumaa moved the trial court to strike any testimony by Enshikar as an expert because he was not qualified to opine on the fair market value of Advance Tire’s assets. The trial court took the motion under advisement and deferred its ruling. Zaid, Jumaa, and Enshikar testified, and the trial concluded.

On July 26, 2018, the trial court signed its final judgment. The trial court granted Zaid’s and Jumaa’s motion to exclude and disregarded Enshikar’s testimony regarding valuation of assets. The trial court rendered a take-nothing judgment in favor of Zaid and Jumaa on all Enshikar’s claims. In September 2018, the trial court signed its findings of facts and conclusions of law. Enshikar timely appealed.

II. ANALYSIS

Enshikar’s issues can be grouped into three categories: (1) partnership and sole proprietorship theories of liability, (2) UFTA, and (3) conspiracy.

A. Partnership and sole proprietorship

In issues 1 to 5, 13, and 14,1 Enshikar makes various arguments that Zaid and

1 Enshikar summarizes issues 1 to 5, 13, and 14 as follows: 1. Appellant’s Issue One– Did the Trial Court err in concluding that “Advance Tire (sic) was not dissolved prior to Plaintiff’s injury on January 23, 2012”? (COL No. 17) (CR 741). 2. Appellant’s Issue Two – Did the Trial Court err in finding that Advance Tire & Wheels was not a partnership? (COL 18) (CR 741). 3. Appellant’s Issue Three – Did the Trial Court err in not finding Zaid and Jumaa liable in their capacity as partners? (COL 20 and 21) (CR 741). 4. Appellant’s Issue Four – Did the Court err in in failing to find that Advance Tire & Wheels was a sole proprietorship? 5. Appellant’s Issue Five - Did the Court Err in not holding Zaid liable as a sole proprietor? (COL 21). 13. Appellant’s Issue Thirteen -- Did the Court Err in its COL No. 19 (CR 741) that “The time period to bring claims against the (sic) Zaid and Jumaa individually has expired”? 14. Appellant’s Issue Fourteen—Did the Trial Court Err in Concluding that 3 Jumaa are individually or vicariously liable for the 2015 judgment because at the time of Enshikar’s workplace accident Advance Tire was no longer an LLC but had transformed into a different entity, either a partnership run by Zaid and Jumaa or a sole proprietorship run by Jumaa. Each of Enshikar’s issues is premised on his contention that Advance Tire had ceased its existence as an LLC at the time of his injury and no longer shielded Zaid and Jumaa personally from liability. We begin with an analysis of Advance Tire’s status as an LLC at the time of Enshikar’s accident.

Under the Business Organizations Code, a filing entity such as an LLC does not cease existing until, after required windup of the entity is complete, the entity files a certificate of termination. Tex. Bus. Orgs. Code Ann. §§ 11.101, .102; see id. § 1.002(22) (LLC is filing entity); In re ReadyOne Indus., Inc., 294 S.W.3d 764, 771 (Tex. App.—El Paso 2009, no pet.) (“Most importantly, after the windup is complete, the entity must file a certificate of termination. So, the corporate entity does not cease to exist until the termination is filed.”) (citations omitted). This requirement may not be waived. See Tex. Bus. Orgs. Code Ann. § 101.054(a)(6).

Enshikar does not contest that Advance Tire was formed as an LLC and does not challenge the trial court’s findings of fact that his accident occurred on January 23, 2012 and that Advance Tire filed a certificate of termination on March 23, 2012. Because the certificate of termination was filed two months after the accident, on the date of the accident Advance Tire existed as an LLC, not a partnership or sole proprietorship2 that might allow for personal liability of Zaid or Jumaa. See Tex.

“Jumaa has no individual liability to satisfy the judgment against Advance Tire” (COL No. 20) (CR 741) and “Zaid has no individual liability to satisfy the judgment against Advance Tire”? (COL No. 21) (CR 741). 2 Enshikar argues that, although he requested additional findings of fact on his sole-proprietorship theory, the trial court did not provide them, thereby harming him. When additional findings of fact are requested but not filed, it “is presumed harmful, unless ‘the record 4 Bus. Orgs. Code Ann. § 11.102; In re ReadyOne Indus., 294 S.W.3d at 771.

We overrule Enshikar’s issues 1 to 5, 13, and 143 concerning Zaid’s and Jumaa’s liability for the 2015 judgment on the grounds that Advance Tire was no longer an LLC at the time of the accident.4 Tex. R. App. P. 47.1.

B. UFTA

We next consider Enshikar’s UFTA arguments in issues 7 to 12.5 Enshikar

before [the] appellate court affirmatively shows that the complaining party has suffered no injury.’” Cherne Indus., Inc. v. Magallanes, 763 S.W.2d 768, 772 (Tex. 1989) (quoting Wagner v. Riske, 178 S.W.2d 117, 120 (Tex. 1944)). Given that Enshikar’s sole-proprietorship arguments hinged on his LLC argument, which we reject, we conclude Enshikar has suffered no injury. See id.; Elliott v. Kraft Foods N. Am., Inc., 118 S.W.3d 50, 55 (Tex.

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Abrhim Enshikar v. Ahmad Zaid and Mazen Jumaa, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abrhim-enshikar-v-ahmad-zaid-and-mazen-jumaa-texapp-2020.