Megatel Homes, III, LLC v. Mehrdad Moayedi; United Development Funding, L.P.; United Development Funding II, L.P.; United Development Funding III, L.P.; United Development Funding IV; United Development Funding Income Fund V; UMT Services Inc.; UMT Holdings, L.P.; Hollis Greenlaw; Theodore F. Etter; Benjamin Wissink; and Brandon Jester

CourtDistrict Court, N.D. Texas
DecidedJune 25, 2026
Docket3:20-cv-00688
StatusUnknown

This text of Megatel Homes, III, LLC v. Mehrdad Moayedi; United Development Funding, L.P.; United Development Funding II, L.P.; United Development Funding III, L.P.; United Development Funding IV; United Development Funding Income Fund V; UMT Services Inc.; UMT Holdings, L.P.; Hollis Greenlaw; Theodore F. Etter; Benjamin Wissink; and Brandon Jester (Megatel Homes, III, LLC v. Mehrdad Moayedi; United Development Funding, L.P.; United Development Funding II, L.P.; United Development Funding III, L.P.; United Development Funding IV; United Development Funding Income Fund V; UMT Services Inc.; UMT Holdings, L.P.; Hollis Greenlaw; Theodore F. Etter; Benjamin Wissink; and Brandon Jester) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Megatel Homes, III, LLC v. Mehrdad Moayedi; United Development Funding, L.P.; United Development Funding II, L.P.; United Development Funding III, L.P.; United Development Funding IV; United Development Funding Income Fund V; UMT Services Inc.; UMT Holdings, L.P.; Hollis Greenlaw; Theodore F. Etter; Benjamin Wissink; and Brandon Jester, (N.D. Tex. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

MEGATEL HOMES, III, LLC, § § Plaintiff, § § v. § Civil Action No. 3:20-cv-00688-L § MEHRDAD MOAYEDI; UNITED § DEVELOPMENT FUNDING, L.P.; § UNITED DEVELOPMENT FUNDING II, § L.P.; UNITED DEVELOPMENT § FUNDING III, L.P.; UNITED § DEVELOPMENT FUNDING IV; § UNITED DEVELOPMENT FUNDING § INCOME FUND V; UMT SERVICES § INC.; UMT HOLDINGS, L.P.; HOLLIS § GREENLAW; THEODORE F. ETTER; § BENJAMIN WISSINK; and BRANDON § JESTER, § § Defendants. §

MEMORANDUM OPINION AND ORDER

Before the court are: • Defendant Mehrdad Moayedi’s Motion for Leave to File under Seal and Brief in Support (Vol I – MSJ Brief) (Doc. 410) (filed under seal); Defendant Mehrdad Moayedi’s Motion for Leave to File under Seal and Brief in Support (Vol III – Motion to Exclude) (Doc. 411) (filed under seal); Defendant Mehrdad Moayedi’s Motion for Leave to File under Seal and Brief in Support (Vol IVa – Motion to Exclude Appendix) (Doc. 412) (filed under seal); Defendant Mehrdad Moayedi’s Motion for Leave to File under Seal and Brief in Support (Vol IVb – Motion to Exclude Appendix) (Doc. 413) (filed under seal); Defendant Mehrdad Moayedi’s Motion for Leave to File under Seal and Brief in Support (Vol IIa – MSJ Appendix) (Doc. 414) (filed under seal); Defendant Mehrdad Moayedi’s Motion for Leave to File under Seal and Brief in Support (Vol IIb – MSJ Appendix) (Doc. 415) (filed under seal); and Defendant Mehrdad Moayedi’s Motion for Leave to File under Seal and Brief in Support (Vol IIc – MSJ Appendix) (Doc. 418) (filed under seal) (collectively, “Mehrdad Moayedi’s Motions for Leave to File under Seal”), filed on March 11, 2026;

Memorandum Opinion and Order - Page 1 • UDF’s Unopposed Motion for Leave to File Documents under Seal and Brief in Support (Doc. 420), filed March 11, 2026; UDF’s Unopposed Motion for Leave to File Documents under Seal and Brief in Support (Doc. 426), filed March 11, 2026; UDF’s Unopposed Motion for Leave to File Documents Under Seal and Brief in Support (Doc. 449), filed May 29, 2026; and UDF’s Unopposed Motion for Leave to File Documents Under Seal and Brief in Support (Doc. 453), filed May 29, 2026 (“UDF’s Motions for Leave to File under Seal”);

• Plaintiff Megatel Homes III, LLC’s Unopposed Motion for Leave to File under Seal and Brief in Support (Doc. 444) (“Megatel’s Motion for Leave to File under Seal”), filed March 30, 2026;

After considering the motions, record, and applicable law, and for the reasons stated herein, the court denies without prejudice Mehrdad Moayedi’s Motions for Leave to File under Seal; grants UDF’s Motions for Leave to File under Seal; and denies without prejudice Megatel’s Motion for Leave to File under Seal. I. Relevant Background In a prior decision in this matter, the court set forth the current legal standard in the Fifth Circuit for sealing documents during the adjudicative phase of a case. See Jan. 28, 2025 Order (Doc. 356) (incorporated by reference herein). In that Order, the court denied without prejudice multiple motions for leave to seal, filed by the same movants, namely, Mehrdad Moayedi (“Mr. Moayedi”), UDF1, and Megatel Homes, III, LLC (“Megatel” or “MHIII”). See id. at 3-5. On January 28, 2025, as a result of the parties’ grossly inadequate motions, the court denied the motions without prejudice, stating: The court puts the parties on notice that any motion requesting that a document or a portion of a document be filed under seal must comply with the authority herein cited as well as any other applicable authority. Further, the attorneys are directed to

1 “UDF” refers collectively to United Development Funding, L.P., United Development Funding II, L.P., United Development Funding III, L.P., United Development Funding IV, United Development Funding Income Fund V, UMT Services, Inc., and UMT Holdings, L.P., Hollis Greenlaw, Theodore F. Etter, Benjamin Wissink, and Brandon Jester.

Memorandum Opinion and Order - Page 2 explain specifically how and why their motion complies with the authority set forth in this Memorandum Opinion and Order. Failure to follow this directive will result in the denial of the motion. This is the last chance that the parties will be given to comply with the relevant law regarding the filing of sealed documents. Id. at 5. Mr. Moayedi, UDF, and Megatel once again seek leave of court to file documents under seal. After setting forth the applicable legal standard, the court will address the motions in turn. II. Legal Standard The court “heavily disfavor[s] sealing information placed in the judicial record” and discourages such requests. June Med. Servs., L.L.C. v. Phillips, 22 F.4th 512, 519-20 (5th Cir. 2022). “The public’s right of access to judicial records is a fundamental element of the rule of law. . . . Article III courts are independent, and it is particularly because they are independent that the access presumption is so vital—it gives the federal judiciary a measure of accountability, in turn giving the public confidence in the administration of justice.” Binh Hoa Le v. Exeter Fin. Corp., 990 F.3d 410, 417 (5th Cir. 2021) (cleaned up). Substantively, different standards exist for parties sealing their own discovery and sealing adjudicative materials. “At the discovery stage, when parties are exchanging information, a stipulated protective order under Rule 26(c) may well be proper.” Id. at 420 (original emphasis). “But at the adjudicative stage, when materials enter the court record, the standard for shielding records from public view is far more arduous.” Id. Sealing discovery parties file with the court falls under the good cause standard. June Med. Servs., 22 F.4th at 521. By contrast, for adjudicative materials, a line-by-line, page-by-page analysis of the proposed sealed documents must be undertaken. Id. at 521 (“To decide whether something should be sealed, the court must undertake a document-by-document, line-by-line

Memorandum Opinion and Order - Page 3 balancing of the public’s common law right of access against the interests favoring nondisclosure.” (cleaned up)).2 “Under both standards, the working presumption is that judicial records should not be sealed.” June Med. Servs., 22 F.4th at 521 (cleaned up). “Courts should be ungenerous with their

discretion to seal judicial records[.]” Id. (cleaned up). “And, to the extent that any sealing is necessary, it must be congruent to the need.” Id. (cleaned up). Here the documents at issue pertain to Mehrdad Moayedi’s and UDF’s respective summary judgment motions and motions challenging experts that are inextricably intertwined with the summary judgment motions, as well as Megatel’s responses to these dispositive motions and UDF’s reply briefs. The documents are part of motions requiring judicial resolution of the merits, rather than just discovery and, therefore, the “stricter balancing standard” applies. See Binh Hoa Le, 990 F.3d at 419. Thus, “the court must undertake a document-by-document, line-by-line balancing of the public’s common law right of access against the interests favoring nondisclosure.” June Med. Servs., 22 F.4th at 521 (cleaned up).

III. Discussion A. Mehrdad Moayedi’s Motions for Leave to File Under Seal (Docs. 410, 411, 412, 413, 414, 415, and 418) In Mehrdad Moayedi’s Motions for Leave to File under Seal, he requests that the court grant him leave to file under seal the entirety of his: (1) Brief in Support of Motion for Summary Judgment (Doc. 410); (2) Appendix in Support of Motion for Summary Judgment (Docs. 414, 415,

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Megatel Homes, III, LLC v. Mehrdad Moayedi; United Development Funding, L.P.; United Development Funding II, L.P.; United Development Funding III, L.P.; United Development Funding IV; United Development Funding Income Fund V; UMT Services Inc.; UMT Holdings, L.P.; Hollis Greenlaw; Theodore F. Etter; Benjamin Wissink; and Brandon Jester, Counsel Stack Legal Research, https://law.counselstack.com/opinion/megatel-homes-iii-llc-v-mehrdad-moayedi-united-development-funding-txnd-2026.