Iqbal Husaeen v. Muslim Ummah Trust, Inc.

New Jersey Superior Court Appellate Division·Decided May 7, 2025·No. A-2458-23·Unpublished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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-2458-23

IQBAL HUSAEEN, AK CONSTRUCTION, and IR CORPORATION, INC., d/b/a IR CONSTRUCTION,

Plaintiffs-Appellants/ Cross-Respondents,

and

MUBARAK AHMED, MOHAMMED A. RAHIM, MUHAMMAD MAIN UDDIN, MOHAMMED MAHBUBUR RAHMAN, and MOHAMMED MAIN UDDIN,

Plaintiffs,

v.

MUSLIM UMMAH TRUST, INC., d/b/a MASJID AL-HERA,

Defendant-Respondent/ Cross-Appellant,

and MOHAMMED EMDADUL HOQUE, MD ZIAUL ISLAM, MOHAMMED JASHIM UDDIN, MOHAMMED OBYED CHOWDHURY, MOHAMMED ELIAS, KAZI ELIAS, NASIR UDDIN, ABUL KALAM AZAD, and MUHAMMAD R. AMIN,

Defendants. ___________________________

Submitted April 3, 2025 – Decided May 7, 2025

Before Judges Natali and Walcott-Henderson.

On appeal from the Superior Court of New Jersey, Law Division, Atlantic County, Docket No. L-3182-19.

George N. Polis, attorney for appellants.

Soliman & Associates, PC, attorneys for respondents (Ahmed M. Soliman, on the brief).

This appeal, which returns to us after our remand, involves ongoing

disputes related to the organization, governance, and business practices of a

mosque and religious school in Atlantic City owned and operated by defendant

Muslim Ummah Trust, Inc., d/b/a Masjid Al-Hera (MUT) and its board of

directors. The parties represent two factions of the organization who are

competing for control and frequently seek judicial intervention to resolve their

A-2458-23 2 disputes. Plaintiff Iqbal Husaeen and certain plaintiffs not participating in this

appeal were founding members of the mosque and comprised the initial board

of directors. The defendants not participating in this appeal voted to remove the

initial board of directors and now control the mosque.1

Husaeen is the principal and sole owner of plaintiffs IRC and AKC.

Husaeen alleged he and his companies cumulatively loaned MUT $289,751.46,

broken down as follows: $239,283.81 from IRC; $33,843.65 from Husaeen

personally; and $16,624 from AKC to renovate and operate the mosque. The

judge denied the requested repayment with respect to these loans but ordered

the defendants in that matter to "make a payment of $7,500[] . . . into a trust

account to be managed by [the Husaeen Plaintiffs] . . . to satisfy any litigation

costs incurred by the litigants." (alteration in original). We previously

remanded, concluding the prior judge erred in denying plaintiffs' loan-related

claims under the Entire Controversy Doctrine (ECD) and failed to articulate the

legal and factual bases for imposing the $7,500 payment. See generally Husaeen

v. Muslim Ummah Tr., No. A-1619-20 (App. Div. July 1, 2022).

1 Certain plaintiffs and defendants identified in the caption have not participated in this appeal because, following our remand, the outstanding issues related only to IR Corporation, Inc., d/b/a IR Construction (IRC), AK Construction (AKC), and Husaeen's alleged loans to MUT and the litigation fund, discussed infra. A-2458-23 3 After a bench trial following our remand, the judge issued a January 26,

2024 order and accompanying statement of reasons denying IRC's request for

repayment of the $239,283.81 purported loan because it failed to present

evidence sufficient to support the amount requested. The judge concluded,

however, AKC's and Husaeen's proofs were sufficient to establish their

entitlement to repayment of the $33,843.65 and $16,624 loans, respectively. It

further found no basis to award costs under a litigation fund theory. The judge

subsequently denied the parties' cross-motions for reconsideration on March 1,

2024.

IRC appeals the January 26 order denying its request for repayment, and

subsequent order denying reconsideration. MUT cross-appeals from the January

26 order with respect to the judgment in favor of Husaeen and AKC. We reject

the arguments on both the appeal and cross-appeal and affirm.

I.

We restate the relevant facts and procedural history from our prior

decision and the trial record. Husaeen, and the non-participating plaintiffs, filed

a two-count complaint asserting claims related to an election held on November

17, 2019. Plaintiffs argued defendants improperly removed them from MUT's

board in violation of the MUT bylaws. Plaintiffs later filed an amended

A-2458-23 4 complaint adding AKC and IRC as plaintiffs and asserted a third count which

concerned repayment of the above-described loans. Defendants answered and

filed a motion to dismiss the amended complaint under Rule 4:6-2(e).

The judge entered an order granting in part, and denying in part,

defendants' motion to dismiss. The judge denied the request to dismiss the first

two counts of the complaint but granted defendants' application to dismiss count

three concerning the disputed loans. It concluded the ECD barred the third count

because Husaeen had knowledge of the loans prior to filing the original lawsuit.

Plaintiffs subsequently filed a motion for reconsideration as to the

dismissal of count three, relying on an affidavit from Husaeen attesting he

owned both AKC and IRC. Husaeen further attested, in response to the judge's

application of the ECD, the loans were not due at the time of the lawsuit and

MUT representatives informed Husaeen, after the original complaint was filed,

that MUT had no intention of repaying the loans at issue. Unpersuaded by these

arguments, the judge entered an order denying plaintiffs' motion for

reconsideration and explained its decision in a written opinion.

Prior to issuing the reconsideration order, the judge held a plenary hearing

with respect to counts one and two. In a January 20, 2021 order, the judge

granted plaintiffs' application to invalidate the election and awarded plaintiffs

A-2458-23 5 attorney's fees and costs. The judge later issued an amended order to correct a

"clerical error" in the January 20 order, withdrew her prior award of counsel fees

and costs, and instead ordered, as noted, defendants to pay $7,500 into a

plaintiff-managed trust account to "satisfy any litigation costs incurred by the

litigants." Plaintiffs appealed from the order dismissing count three and from

the order denying their motion for reconsideration. Defendants cross-appealed

from the order creating the litigation fund.

On appeal, we reversed and remanded. We found plaintiffs asserted a

viable claim for repayment of the loans and held the ECD did not apply because

Husaeen was not obligated raise those issues in the prior matter as AKC and

IRC were not parties to that litigation and there was no evidence presented to

pierce the corporate veil and vitiate those entities' independent existence. We

further held, even if evidence was presented to treat AKC and IRC as the alter

ego of Husaeen, the prior litigation in which Husaeen was a defendant, not a

plaintiff, pertained to changes in MUT's structure and governance, not loans,

and therefore, the two matters did not "arise from related facts or the same

transaction." Husaeen, slip op. at 15 (quoting Wadeer v. New Jersey Mfrs. Ins.

Co., 220 N.J. 591, 605 (2015)).

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