Khaledi v. H.K. Global Trading, Ltd.

126 S.W.3d 273, 2003 Tex. App. LEXIS 9808, 2003 WL 22714741
CourtCourt of Appeals of Texas
DecidedNovember 19, 2003
Docket04-02-00906-CV
StatusPublished
Cited by49 cases

This text of 126 S.W.3d 273 (Khaledi v. H.K. Global Trading, Ltd.) 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
Khaledi v. H.K. Global Trading, Ltd., 126 S.W.3d 273, 2003 Tex. App. LEXIS 9808, 2003 WL 22714741 (Tex. Ct. App. 2003).

Opinion

OPINION

Opinion by

SANDEE BRYAN MARION, Justice.

This is an appeal from a temporary injunction order entered against appellant, Heydar “Shaun” Khaledi. In an opinion and judgment dated October 1, 2003, we *278 modified the trial court’s order and affirmed as modified. Appellant filed a motion for rehearing and a motion to clarify our opinion. To clarify our discussion on the issue of appellees’ probable right of recovery, we vacate our earlier judgment, withdraw our earlier opinion, and issue this opinion and judgment in their place. 1 Concluding our original analysis was correct, we overrule appellant’s motion for rehearing.

FACTUAL BACKGROUND

The underlying lawsuit arises from a business dispute among Heydar “Shaun” Khaledi, Abdol Rasoul “Ross” Khaledi, and Abbas “Shahram” Khaledi, all brothers who began their business relationship in the 1980s. By the 1990s, the brothers had created almost seventeen companies/partnerships (“the Khaledi Companies”) involving electronics, money exchange, and construction. Throughout most of the 1990s, the three brothers worked harmoniously; however, in 1999, they began to experience personal and professional problems. As a result, Ross and Shahram agreed to buy out Shaun’s business interests. The brothers also agreed to retain Shaun as a consultant for the companies. On May 11, 2000, the brothers signed a Letter Agreement detailing the sale • and consulting agreement terms. On June 2, 2000, Shaun transferred his interest in the Khaledi Companies for approximately $5 million to be paid over three years pursuant to a Promissory Note, under which H.K. Global Trading, Ltd. (“H.K.Global”) was the borrower and Shaun the lender. On that same day, the brothers also signed a Consulting Agreement, under which Shaun would act as a consultant to H.K. Global. Pursuant to the Consulting Agreement, Shaun was to be compensated approximately $6 million over five years. The brothers and H.K. Global also executed an Agreement Regarding Conditions to Survive Closing, which set forth other obligations related to closing the deal amongst the brothers.

Ross and Shahram personally guaranteed the debt owed under the Consulting Agreement and the promissory note (collectively, “the indebtedness”). In addition to the personal guarantees, HAR Properties, Ltd. executed deeds of trust on property located on Grant Street and Spivey Lane in Laredo, Texas to secure the indebtedness. As part of the closing on the deal, H.K. Global granted International Bank of Commerce (“IBC”) a lien on the Grant Street and Spivey Lane properties. The brothers’ and H.K. Global’s obligations under the Agreement Regarding Conditions to Survive Closing included obtaining the release of Shaun’s guarantees on certain other debt owed to IBC and another bank and obtaining the release of deeds of trust on two properties on San Mateo in Laredo, Texas that secured other debt owed to IBC. Shaun’s obligations included the subordination of his liens on the Grant Street and Spivey Lane properties to IBC. Pursuant to the Promissory Note and the two deeds of trust, Shaun would release his Grant Street lien “upon retirement of 50%” of the indebtedness and he would release his Spivey Lane lien “upon payment in full” of the indebtedness.

In late 2001, Ross and Shahram paid off the IBC debt early, which removed IBC’s liens from the Grant Street and Spivey Lane properties and resulted in Shaun now holding a first lien position on both properties. In late 2001, Ross and Shah-ram asked Shaun to again subordinate his hens to another lender, but he refused. *279 The underlying litigation eventually ensued.

PROCEDURAL BACKGROUND

In January 2002, H.K. Global, Ross, Shahram, and HAR Properties, Ltd. (collectively, “plaintiffs”) sued Shaun on the following causes of action: fraud in the inducement of the Consulting Agreement, an equitable claim for rescission of the agreement, breach of fiduciary duties, breach of the Consulting Agreement and Agreement Regarding Conditions to Survive Closing, violations of the Deceptive Trade Practices Act, battery, and assault. Ross and Shahram also asserted several claims related to the deeds of trust that secured the indebtedness. After filing suit, H.K. Global made the payments owed to Shaun under the Consulting Agreement and the promissory note into the registry of the court, rather than directly to Shaun. In October 2002, Shaun informed his brothers of his intention to accelerate the entire indebtedness. Plaintiffs obtained a temporary restraining order to enjoin acceleration of the indebtedness and to enjoin any foreclosure of the two properties. Despite the temporary restraining order, Shaun attempted to accelerate the indebtedness and commenced foreclosure proceedings. On October 29, 2002, the trial court signed an order enjoining acceleration and foreclosure and setting a hearing on plaintiffs’ applications for temporary injunction for November 7, 2002. On November 7th, the trial court heard evidence on plaintiffs’ application. On November 26, 2002, the court issued its Order on Plaintiffs’ Applications for Temporary Injunction (“the November 26th Order”). Shaun filed this interlocutory appeal.

On March 31, 2003, this court “provide[d] the trial court with the opportunity to make further orders, including one dissolving the order appealed from or amending the Order on Plaintiffs’ Application for Temporary Injunction to correct any typographical errors or to bring the Order into compliance with Tex.R. Civ. P. 683.” On May 5, 2003, the trial court issued an Amended Order on Application for Temporary Injunction (“the Amended Order”). This court allowed further briefing by the parties and consolidated Shaun’s complaints regarding the November 26th Order with his complaints regarding the Amended Order (collectively, “the temporary injunction”).

On appeal, Shaun asserts the trial court abused its discretion in issuing the temporary injunction because the Amended Order changes the status quo by granting relief that will irrevocably harm him, grants plaintiffs ultimate relief without a trial on the merits, and improperly grants plaintiffs more relief than they sought in their applications for injunctive relief. Shaun also asserts the findings contained in the Amended Order are conclusory, do not comply with Texas Rule of Civil Procedure 683, and are not supported by the evidence. Finally, Shaun asserts the bond set by the court in the Amended Order is not supported by the evidence and is inadequate as a matter of law.

STANDARD OF REVIEW

A temporary injunction is an extraordinary remedy and does not issue as a matter of right. Walling v. Metcalfe, 863 S.W.2d 56, 57 (Tex.1993). A temporary injunction serves to preserve the status quo of the litigation’s subject matter pending trial on the merits. Butnaru v. Ford Motor Co., 84 S.W.3d 198, 204 (Tex.2002). Accordingly, the only question before the trial court is whether the applicant is entitled to preservation of the status quo pending trial on the merits. Walling, 863 S.W.2d at 58; Blackthorne v. Bellush, 61 S.W.3d 439

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Bluebook (online)
126 S.W.3d 273, 2003 Tex. App. LEXIS 9808, 2003 WL 22714741, Counsel Stack Legal Research, https://law.counselstack.com/opinion/khaledi-v-hk-global-trading-ltd-texapp-2003.