Estate of Mohamed J. Kazan v. the Grill House, Inc.

New Jersey Superior Court Appellate Division·Decided April 1, 2026·No. A-0434-24·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited . R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-0434-24

ESTATE OF MOHAMED J. KAZAN and ABDULRAHMAN KAZAN,

Plaintiffs-Respondents,

v.

THE GRILL HOUSE, INC., and MAWAFAG ABEDALLAH, a/k/a MIKE MURTANA,

Defendants-Appellants,

and AHMAD KHAWATMI,

Defendant.

Submitted January 8, 2026 ‒ Decided April 1, 2026

Before Judges Mawla, Marczyk, and Bishop-

Thompson.

On appeal from the Superior Court of New Jersey, Law Division, Passaic County, Docket No. L-0454-22.

Hegge & Confusione, LLC, attorneys for appellants (Michael Confusione, of counsel and on the briefs).

Reddin Masri, LLC, attorneys for respondents (Hisham I. Masri, of counsel and on the brief).

PER CURIAM In this commercial landlord-tenant dispute, defendants The Grill House, Inc. (Grill House) and Mawafag Abedallah a/k/a Mike Murtana appeal from the October 10, 2024 order granting judgment of no cause in favor of plaintiffs Estate of Mohamed J. Kazan and Abdulrahman Kazan 1 (collectively, Kazan plaintiffs). Defendants also challenge the following interlocutory orders: the October 19, 2021 order directing payment of rent to plaintiffs and requiring the deposit of funds for rent and outstanding water and utility charges; the February 18, 2022 order directing the release of funds to plaintiffs and the deposit of future rent payments, taxes, and utilities; a March 25, 2022 order denying reconsideration of the February 2022 order; a January 17, 2023 order denying their motions to stay, postpone judgment, and disqualify plaintiffs' counsel; a February 6, 2023 order authorizing the execution of a warrant of removal; the

1 We refer to Mohamed J. Kazan and Abdulrahman (Abdul) Kazan by their first names because they share a last name. No disrespect is intended.

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April 3, 2023 order denying their motion to vacate the judgment and dismiss plaintiffs' complaint; and the April 10, 2023 amended order. We affirm.

I.

This protracted litigation arises from a commercial lease agreement concerning property located on Main Street in Paterson (Property), which is owned by plaintiffs. Mohamed, Abdul, and Khawatmi executed a five-year lease agreement (Lease), effective December 1, 2009, for the Property to be used by Grill House as a fast-food restaurant operated by Murtana. Khawatmi agreed to pay the base rent of $72,000 for the first year with a 2% increase each year. He further agreed to pay taxes, water, sewer, and other utilities charges for the Property, all of which were considered additional rent. Around two months later, Khawatmi assigned his leasehold interest to Grill House, which agreed to be bound by all obligations under the lease. Mohamed passed away on December 25, 2009.

A. LT-5647-16 In 2016, plaintiffs filed a commercial tenancy action captioned as Estate of Mohamed Kazan v. The Grill House Inc., Docket No. LT-5647-16, alleging non-payment of rent and other charges due, totaling $62,324. A series of orders followed.

A-0434-24

After a hearing, on February 4, 2020, the court found plaintiffs had "substantially complied" with the court's order to render the property commercially habitable. The court further ordered the entire rent balance of $62,324.10 on deposit with the court, the then-outstanding rent and tax balance of $13,253.39, and the January 2020 rent payment of $7,313.96, be turned over to plaintiffs. The matter was deemed closed, and all monies deposited with the Clerk of the Court were ordered released to plaintiffs.

B. LT-3057-20 Grill House did not comply with the court's February 4 order. In March 2020, plaintiffs initiated a second commercial tenant action against Grill House in the Special Civil Part under docket number LT-3057-20, seeking recovery for nonpayment of rent, late charges, attorney's fees, and court costs, totaling $24,549.69.

On August 30, 2021, The Grill House was directed to file a motion to transfer the matter to the Law Division under docket number L-0454-22. Subsequently, on October 19, 2021, the court granted The Grill House's motion to transfer the matter to the Law Division. It further ordered Grill House to: (1) pay directly to plaintiffs $13,253.39 for rent and taxes due through December 2019; (2) pay directly to plaintiff $22,380.69 for rent from January 1 to March

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15, 2020; (3) deposit with the court 75% ($33,571.03) of the rent payments from July 1, 2020 to December 31, 2020; (4) deposit with the court 75% ($335.53) of the outstanding sewer utility fees; (5) deposit with the court 75% ($1,992.27) of the outstanding water utility fees; (6) deposit with the court 75% ($57,070.72) of the rent payments from January 1 to October 1, 2021; (7) pay directly to plaintiffs $8,727.84 for property taxes for tax quarters 2020-1 and 2021-2, deposit with the court $8,727.84 for property taxes for tax quarters 2021-3 and 2021-4, and deposit with the court $17,455.68 for property taxes for tax year 2021; and (8) deposit with the court 75 percent of all future rent payments, utilities, and taxes incurred after October 8, 2021.

From October 19, 2021, through February 17, 2022, Grill House failed to prosecute its counterclaims, conduct discovery, and comply with the payment obligations set forth in the court's October 19, 2021 order. In a February 18, 2022 order, the court directed $124,860.14, which had been deposited by The Grill House with the Clerk, to be released to plaintiffs. On March 25, 2022, the court denied Grill House's motion for reconsideration of the February 2022 order directing the release of the funds.

Also in March 2022, Grill House filed an answer, requested a jury trial, and asserted counterclaims for breach of implied covenants, breach of express

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covenant of quiet enjoyment, breach of other express lease covenants, breach of duty of good faith and fair dealing, breach of contract, consumer fraud, tortious interference with prospective economic gain, and fraud. It contended the restaurant was not operable before, during, and after the COVID-19 pandemic because of the restrictions and as well as frequent flooding, which rendered the Property "unusable" as a restaurant. It asserted the restaurant was ineffectively repaired by plaintiffs.

Thereafter, plaintiffs amended their complaint to add Murtana and Khawatmi as defendants. They asserted claims for non-payment of rent, promissory estoppel, breach of contract, and ejectment for wrongful possession.

Defendants failed to comply with the court's order, prompting plaintiffs to file a motion to enforce litigant's rights. On November 7, 2022, the court granted a Judgment of Possession, permitting plaintiffs to apply for a warrant of removal, and transferred a portion of the litigation to the Special Civil Part. In the accompanying statement of reasons, the court explained the matter was returned to the Special Civil Part for entry of a judgement of possession and awarded plaintiffs $197,627.59, subject to adjustment for "possible erroneous assessment of late fees for periods not encompassed by prior [o]rders of th[e] court."

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Defendants subsequently filed separate motions to stay the proceedings, postpone the judgment, reconsider an order to show cause (OTSC), and disqualify plaintiffs' counsel, Hisham I. Masri, Esq. In its order dated January 17, 2023, the court denied defendants' respective motions, but granted in part their motion for reconsideration of the November 23, 2022 order, modifying the amount due to $116,388.19. It further ordered, in the event defendants paid the sum by December 30, 2022, the judgment of possession and warrant of removal would be vacated. However, defendants failed to comply with the court's directive.

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