Iraq Middle Market Development Foundation v. Harmoosh

175 F. Supp. 3d 567, 2016 WL 1242598, 2016 U.S. Dist. LEXIS 41924
CourtDistrict Court, D. Maryland
DecidedMarch 30, 2016
DocketCivil Case No. GLR-15-1124
StatusPublished
Cited by1 cases

This text of 175 F. Supp. 3d 567 (Iraq Middle Market Development Foundation v. Harmoosh) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iraq Middle Market Development Foundation v. Harmoosh, 175 F. Supp. 3d 567, 2016 WL 1242598, 2016 U.S. Dist. LEXIS 41924 (D. Md. 2016).

Opinion

MEMORANDUM OPINION

George L. Russell, III, United States District Judge

THIS MATTER is before the Court on Defendants’, Mohammad Ali Mohammad Harmoosh and Jawad Alharmoosh, Motion to Compel Arbitration and Dismiss or Stay Action. (ECF No. 10). This case involves Plaintiffs, Iraq Middle Market Development Foundation (“IMMDF”), attempt to enforce a foreign-money judgment obtained in Iraq against Harmoosh. IMMDF seeks to record its Iraqi judgment (Count I) and alleges Harmoosh fraudulently conveyed his ownership interests in a dissolved corporation and two parcels of real property to his son, AlHarmoosh, in an effort to avoid collection of this debt (Count II). (ECF No. 1). Defendants seek to dismiss IMMDF’s action.

The Motion is ripe for disposition. Having reviewed the Motion and supporting documents, the Court finds no hearing necessary pursuant to Local Rule 105.6 (D.Md. 2014). For the reasons stated below, the Court will grant the Motion.

I. BACKGROUND1

On November 10, 2006, IMMDF and Harmoosh’s company, Al-Harmoosh for [571]*571General Trade, Travel, and Tourism (“AGTTT”), located in Iraq, entered into a Medium Term Loan Agreement (“Loan Agreement”). Pursuant to the terms of the Loan Agreement, IMMDF provided AGTTT with $2,000,000 to expand its business. Harmoosh, an Iraqi and American citizen, signed the Loan Agreement in his capacity as Managing Partner of AGTTT and a personal guaranty in his individual capacity in the form of a promissory note. AGTTT then allegedly failed to make payments on the loan in accordance with the terms of the Loan Agreement. In 2008, AGTTT went out of business.

On July 30, 2010, in an effort to collect the unpaid balance on the loan, IMMDF brought suit in this Court to enforce the promissory note. Iraq Middle Mkt. Dev. Found. v. Al Harmoosh, 769 F.Supp.2d 838 (D.Md.2011). Harmoosh moved to dismiss the case for lack of subject-matter jurisdiction, arguing that the arbitration provision in the Loan Agreement barred IMMDF from pursuing litigation. Id. at 840. On January 20, 2011, the Court found that the promissory note was part of the Loan Agreement, which contains an arbitration provision encompassing all disputes and claims between the parties that may “arise out of or in connection with the [Loan] Agreement or a breach ... thereof.” Id. at 842. As a result, the Court concluded that it lacked subject-matter jurisdiction to hear IMMDF’s claims and dismissed the case with prejudice. Id. at 842-43.

Seeking another venue to enforce the promissory note, in or around February 2014, IMMDF brought suit against Har-moosh in the Court of First Instance for Commercial Disputes in Baghdad, Iraq. During the Iraqi proceedings, Harmoosh was represented by an Iraqi attorney, Wael Jasim Kadhim Al-Waeli. On April 9, 2014, the Iraqi trial court entered judgment against Harmoosh in the amount of $2,000,000 plus attorney’s fees. Harmoosh unsuccessfully appealed the judgment to the Baghdad/Al-Rasafa Federal Court of Appeals, which affirmed the trial court judgment on or about August 3,2014. Har-moosh then appealed the judgment to the Iraqi Federal Court of Cassation, which also affirmed the trial court’s decision on September 22, 2014. Harmoosh exhausted his appeals in the Iraqi judicial system. IMMDF now seeks to collect on the judgment it received against Harmoosh in Iraq.

On April 20, 2015, IMMDF brought suit against Defendants, seeking to record its Iraqi judgment and alleging fraudulent conveyance. (ECF No. 1). On May 14, 2015, Defendants filed a Motion to Compel Arbitration and Dismiss or Stay Action. (ECF No. 10). On June 22, 2015, IMMDF filed an Opposition to the Motion. (ECF No. 13). On August 3, 2015, Defendants filed a Reply to IMMDF’s Opposition. (ECF No. 16). On August 6, 2015, IMMDF filed a Surreply.2 (ECF No. 17-2).

II. DISCUSSION

A. Standard of Review

The Court notes that although Defendants title their Motion as a “Motion to Compel Arbitration,” Defendants do not seek to compel Count I. Rather, they pres[572]*572ent several arguments against recognition of IMMDF’s Iraqi judgment. The Court will, therefore, construe the Motion as both a motion to compel arbitration and to dismiss for failure to state a claim.

A court may treat a motion to compel arbitration as either a motion to dismiss or a summary judgment motion. PC Constr. Co. v. City of Salisbury, 871 F.Supp.2d 475, 477 (D.Md.2012) (quoting Shaffer v. ACS Gov’t Servs., Inc., 321 F.Supp.2d 682, 683-84 (D.Md.2004)). “Whether the motion should be treated as a motion to dismiss or a motion for summary judgment turns on whether the court must consider documents outside the pleadings.” Id.

To survive a Federal Rule of Civil Procedure 12(b)(6) motion to dismiss, a complaint must set forth “a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). “When ‘matters outside the pleading are presented to and not excluded by the court, the [12(b)(6)] motion shall be treated as one for summary judgment and disposed of as provided in Rule 56.’” Laughlin v. Metro. Wash. Airports Auth., 149 F.3d 253, 260-61 (4th Cir.1998) (quoting Fed.R.Civ.P. 12(d)).

Under Rule 56(a), the Court must grant summary judgment if the moving party demonstrates that there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. In reviewing a motion for summary judgment, the Court views the facts in a light most favorable to the nonmoving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986) (citing Adickes v. S. H. Kress & Co., 398 U.S. 144, 158-59, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970)).

Once a motion for summary judgment is properly made and supported, the opposing party has the burden of showing that a genuine dispute exists. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). “[T]he mere existence of some alleged factual dispute between the parties will, not defeat an otherwise properly supported motion for summary judgment; the requirement is that there be no genuine issue of material fact.” Anderson, 477 U.S. at 247-48, 106 S.Ct. 2505.

A material fact is one that might affect the outcome of a party’s case. Id. at 248, 106 S.Ct. 2505; JKC Holding Co. v. Wash. Sports Ventures, Inc., 264 F.3d 459, 465 (4th Cir.2001).

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175 F. Supp. 3d 567, 2016 WL 1242598, 2016 U.S. Dist. LEXIS 41924, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iraq-middle-market-development-foundation-v-harmoosh-mdd-2016.