Elyahou Lavizadeh and Parvaneh Lavizadeh, Trustees of the Elyahou and Parvaneh Lavizadeh Trust 2004 v. Ali A. Moghadam

Court of Appeals of Texas·Decided December 13, 2019·No. 05-18-00955-CV·Published

Opinion

AFFIRMED and Opinion Filed December 13, 2019

S In The

Court of Appeals

Fifth District of Texas at Dallas No. 05-18-00955-CV

ELYAHOU LAVIZADEH AND PARVANEH LAVIZADEH, TRUSTEES OF THE ELYAHOU AND PARVANEH LAVIZADEH TRUST 2004, Appellants V.

ALI A. MOGHADAM, Appellee

On Appeal from the 191st Judicial District Court Dallas County, Texas

Trial Court Cause No. DC-15-06627

MEMORANDUM OPINION

Before Chief Justice Burns, and Justices Richter and Rosenberg Opinion by Chief Justice Burns Appellants Elyahou Lavizadeh and Parvaneh Lavizadeh, Trustees of the Elyahou

Lavizadeh and Parvaneh Lavizadeh Trust 2004 (collectively, the Trust) appeal a judgment rendered in favor of Ali A. Moghadam regarding Moghadam’s alleged breach of a guaranty. In three issues, the Trust complains the trial court impermissibly denied its right to a jury trial, erred in construing the guaranty and finding no breach by Moghadam, and in granting Moghadam’s motion for protection regarding the testimony of its attorney, sought by the Trust. Finding no error, we affirm.

FACTUAL BACKGROUND

Moghadam is the managing member of HP Texas Holdings, LLC f/k/a Highland Park Investments, LLC, (HP).1 In 2006, HP sold an apartment complex to the Trust (the Property). The sale generated three lawsuits between and among these parties, a case filed in 20072 (the 2007 Lawsuit), a subsequent case filed in 2010 (the 2010 Lawsuit), as well as the instant case and this appeal.

In the 2007 Lawsuit, HP obtained a judgment against the Trust in the principle amount of more than $1.9 million (the Judgment). Although HP reacquired the Property pursuant to a constable’s auction, the Trust also appealed the Judgment. HP subsequently filed the 2010 Lawsuit alleging the Trust had made certain fraudulent transfers. While the Judgment was on appeal and the 2010 Lawsuit was pending, in a 2014 telephone call between certain counsel and the son of the trustees, the parties settled both lawsuits by agreeing to dismiss the 2007 Lawsuit appeal and the 2010 Lawsuit, resolve a related tax lawsuit,3 and by executing several instruments. The Judgment however, was not discharged by the settlement.

Rather than agreeing to offset or reduce the amount of the Judgment the Trust owed to HP, the parties executed (a) a promissory note by which HP agreed to pay $120,000 to the Trust by a date certain (the Note); (b) a Deed of Trust on the Property securing the Note; and, (c) a personal guaranty executed by Moghadam, individually, in favor of the Trust (the Guaranty). The Guaranty prohibited “any claim of offset” as between the amount owed pursuant to the Note and the

1 Although HP forfeited its corporate charter for a brief period of time during the pendency of the proceedings below, in its brief the Trust concedes HP’s reinstatement as further evidenced by the Certificate of Filing reinstating HP as an active corporate entity found in the record. Thus we find no standing or like issue with respect to the temporary forfeiture. 2 Cause No. 07-04950-J, filed in the 191st District Court of Dallas County, and later appealed to this Court.

3 In 2012, while both lawsuits were pending, Dallas County and various related taxing authorities sued HP for property taxes owed with respect to the Property.

Guaranty, and the Judgment. It also included Moghadam’s agreement not to execute on the Judgment, and his promise to indemnify the Trust for damages caused by such execution.

The Trust did not pay the Judgment and HP did not pay the $120,000 due under the Note.

Five months after HP defaulted on the Note and pursuant to the still unsatisfied Judgment, HP obtained a turnover order by which the Note and Deed of Trust were turned over to a receiver for sale or collection. When the Trust’s emergency motion to dissolve the turnover order and discharge the receiver was denied, it filed the instant lawsuit against Moghadam only, alleging Moghadam had breached the Guaranty—through HP’s motion for turnover order and appointment of receiver—which the Trust asserted was an execution in violation of the Guaranty.

In August 2017, the Trust sent a demand letter to Moghadam pursuant to the Guaranty, seeking payment of $191,700 as indemnity,4 $1,000 in attorney’s fees, “plus any post-judgment interest.” On September 6, 2017, the receiver notified both parties he had received payment “in full and final satisfaction of the Note” in the amount of $191,700 and would distribute that amount to HP, the judgment creditor.5 On September 19, 2017, the parties appeared for trial and several pre-trial motions, including HP’s motion for protective order arising from the Trust’s designation of HP’s counsel as a fact witness. The Trust asserted HP’s counsel’s testimony was relevant to the terms of the oral settlement and the parties’ intent regarding the Guaranty’s terms. During arguments before jury selection commenced, the parties disclosed that Moghadam had paid the principle amount owed under the Note plus interest. After further discussion with the parties and following their

4 The $51,700 was the Trust’s calculation of accrued interest following default.

5 The receiver’s notice was filed with the Court in the 2007 Lawsuit, and Moghadam’s counsel requested that the court judicially notice all documents and pleadings filed in both the 2007 Lawsuit and the 2012 Lawsuit, over which the same trial judge had presided.

suggestions, the judge informed the parties that until the remaining legal issues were resolved, she saw no factual issues and no reason to present the case to a jury. The court admitted the Trust’s exhibits, agreed to the parties’ proposal regarding stipulated admission of Moghadam’s exhibits (which were admitted on the same day although submitted to the court a few days later), gave each side a time-line for additional briefing regarding the legal issues, and stated she would conduct a further hearing and jury trial if necessary.

Instead of filing a brief regarding the legal issues—whether payment on the Guaranty to the receiver operated as an offset prohibited by the Guaranty rather than payment on the Note as guaranteed—the Trust briefed its denial of the right to a jury trial. The trial court entered judgment in favor of Moghadam, and this appeal followed.

DISCUSSION

A. The Trust agreed to the court’s determination of the legal issues premised on stipulated facts.

In its first issue, the Trust complains the trial court infringed on its Constitutional right to a jury trial by “sua sponte dismissing the jury trial” and deciding the case solely upon documentary evidence. The Trust, however, not only failed to object to the proposal, it consented.

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Elyahou Lavizadeh and Parvaneh Lavizadeh, Trustees of the Elyahou and Parvaneh Lavizadeh Trust 2004 v. Ali A. Moghadam, (Tex. Ct. App. 2019).

Elyahou Lavizadeh and Parvaneh Lavizadeh, Trustees of the Elyahou and Parvaneh Lavizadeh Trust 2004 v. Ali A. Moghadam (Elyahou Lavizadeh and Parvaneh Lavizadeh, Trustees of the Elyahou and Parvaneh Lavizadeh Trust 2004 v. Ali A. Moghadam) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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