M & M Wholsesale Distributors v. Sam's Wholesale, LLC

CourtNew Jersey Superior Court Appellate Division
DecidedJune 13, 2025
DocketA-3025-23
StatusUnpublished

This text of M & M Wholsesale Distributors v. Sam's Wholesale, LLC (M & M Wholsesale Distributors v. Sam's Wholesale, LLC) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M & M Wholsesale Distributors v. Sam's Wholesale, LLC, (N.J. Ct. App. 2025).

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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ."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-3025-23

M & M WHOLSESALE DISTRIBUTORS,

Plaintiff-Respondent,

v.

SAM'S WHOLESALE, LLC,

Defendant-Appellant,

and

MAHMOUD ABDEL-WAHAD,1

Defendant. ____________________________

Submitted June 4, 2025 – Decided June 13, 2025

Before Judges Mayer and DeAlmeida.

On appeal from the Superior Court of New Jersey, Law Division, Bergen County, Docket No. L-6362-22.

George J. Cotz, attorney for appellant.

1 Improperly pled as Mahmoud Wahab. Sammarro & Zalarick, PA, attorneys for respondent (Gary J. Zalarick, on the brief).

PER CURIAM

Defendant Sam's Wholesale, LLC (Sam's) appeals from the April 18, 2024

Law Division judgment in favor of plaintiff M & M Wholesale Distributors

(M&M) in the amount of $26,147.44 in this book account matter. 2 We affirm.

I.

On November 29, 2022, M&M, a wholesale distributor of candy,

cigarettes, and tobacco products, filed a complaint in the Law Division alleging

it provided $26,222.44 worth of goods to Sam's upon Sam's promise to pay for

those goods. M&M alleged it made a demand for payment, which Sam's refused.

The court held a one-day bench trial at which Mukesh Papaiya testified

on behalf of M&M as follows. M&M had a twenty-year business relationship

with Sam's. Mahmoud Abdel-Wahab, a principal of Sam's, regularly placed

2 Sam's case information statement indicates it is appealing the May 31, 2024 order denying its motion for reconsideration of the April 18, 2024 judgment. However, because Sam's made no substantive arguments with respect to the May 31, 2024 order in its brief we consider its appeal from that order waived. "[A]n issue not briefed is deemed waived." Pressler and Verniero, Current N.J. Court Rules, cmt. 5 on R. 2:6-2 (2025); see also Telebright Corp., Inc. v. Dir., Div. of Tax., 424 N.J. Super. 384, 393 (App. Div. 2012) (deeming a contention waived when the party failed to include any arguments supporting the contention in its brief). A-3025-23 2 orders with M&M for cigarettes and other tobacco products over the telephone. 3

Abdel-Wahab or a Sam's employee would come to M&M's place of business to

pick up the products, for which M&M would deliver an invoice. Although

M&M often obtained a signature on invoices when the products were picked up,

it did not always do so.

M&M ordinarily did not extend credit for its products beyond one week .

Sam's, however, frequently made partial payments on its invoices, often not

paying them in full for three or four weeks. Also, when it picked up products,

Sam's often gave M&M post-dated checks for outstanding invoices. M&M

understood it would not deposit those checks until the dates reflected on them,

which M&M considered a courtesy to Sam's. Ordinarily, it was M&M's practice

not to allow customers to pick up new orders until all outstanding invoices had

been paid.

M&M produced invoices which were admitted into evidence establishing

it provided cigarettes and tobacco products to Sam's on November 18, 2019,

with a cost of $20,147.44. In addition, on January 30, 2020, M&M charged

Sam's $6,000 because a check in that amount submitted by Sam's to M&M as

3 Abdel-Wahab was named as a defendant. M&M stipulated to the dismissal of the claims against him. A-3025-23 3 payment on a prior invoice was rejected twice for insufficient funds. On

November 18, 2019 and November 19, 2019, M&M charged Sam's five

assessments of $15 each for bank fees incurred by M&M for checks submitted

by Sam's as payment on other invoices that were rejected for insufficient funds.

Once the returned check and bank fees were added to the outstanding November

18, 2019 invoice, Sam's had an unpaid balance due of $26,222.44. M&M, which

waived a claim for interest and attorney's fees, sought that amount from Sam's.

Papaiya recalled that Abdel-Wahab picked up the November 18, 2019

order. M&M did not obtain a signature from Abdel-Wahab, who did not pay

Papaiya for the products he received. As of that date, Sam's had an outstanding

balance of $6,000 from a November 8, 2019 order. Abdel-Wahab gave M&M a

post-dated check for $6,000, which M&M considered payment on Sam's

outstanding balance.

Papaiya remembered Abdel-Wahab picked up the November 18, 2019

order because a few days later Abdel-Wahab returned to M&M asking to pick

up more cigarettes. As of that date, the $6,000 check for the November 8, 2019

order had been returned by the bank for insufficient funds and the November 18,

2019 invoice was not paid. Papaiya declined to provide any additional products

to Abdel-Wahab and terminated M&M's business relationship with Sam's.

A-3025-23 4 The wholesale tobacco products industry is heavily regulated. M&M is

authorized to place tax stamps on tobacco products. Sam's, as a tobacco sub -

jobber, does not have that authority. M&M is required to file monthly reports

with the Division of Taxation (Division) stating the amount of tax -stamped

cigarettes it sold to each sub-jobber. M&M included the November 18, 2019

sale in its monthly report to the Division of the number of cigarettes it sold to

Sam's in November 2019. Papaiya testified he sent Abdel-Wahab the November

8, 2019 and November 18, 2019 invoices and a registered letter seeking payment

of Sam's outstanding balance.

Abdel-Wahab also testified. He claimed he placed Sam's last order with

M&M on November 8, 2019, and paid Sam's outstanding balance. After that

date, he decided to terminate Sam's business relationship with M&M. Abdel-

Wahab did not recall placing an order with M&M on November 18, 2019, and

denied picking up products from M&M on that date. He denied receiving the

November 18, 2019 invoice or any communications from M&M seeking to

collect an outstanding balance.

He agreed he routinely gave M&M post-dated checks when he or one of

his employees picked up an order. Abdel-Wahab further testified those checks

always cleared before Sam's picked up a new order because M&M would not

A-3025-23 5 fill a new order unless Sam's had no outstanding invoices. In addition, M&M

would not allow Sam's to pick up a new order unless it obtained a signature

acknowledging the products had been received.

According to Abdel-Wahab, as of November 8, 2019, when Sam's picked

up its last order from M&M, it had no outstanding balance because it had

provided a $6,000 post-dated check to M&M. In addition, although the $6,000

check initially was rejected for insufficient funds, it was cleared by the bank in

December 2019, satisfying Sam's invoice for the November 8, 2019 order.

However, Abdel-Wahab could not explain a notation on the $6,000 check from

the bank dated December 27, 2019 stating, "return reason not authorized. NSF."

That bank record was admitted as evidence.

At the conclusion of the trial, the court issued an oral decision in favor of

M&M. The court found Papaiya's testimony to be credible.

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M & M Wholsesale Distributors v. Sam's Wholesale, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-m-wholsesale-distributors-v-sams-wholesale-llc-njsuperctappdiv-2025.