Noordin Bhamani and Nooruddin T. "Nick" Bhamani v. Citizens Enterprises, Inc. and Mohammad Siddique

CourtCourt of Appeals of Texas
DecidedApril 16, 2015
Docket11-13-00041-CV
StatusPublished

This text of Noordin Bhamani and Nooruddin T. "Nick" Bhamani v. Citizens Enterprises, Inc. and Mohammad Siddique (Noordin Bhamani and Nooruddin T. "Nick" Bhamani v. Citizens Enterprises, Inc. and Mohammad Siddique) 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
Noordin Bhamani and Nooruddin T. "Nick" Bhamani v. Citizens Enterprises, Inc. and Mohammad Siddique, (Tex. Ct. App. 2015).

Opinion

Opinion filed April 16, 2015

In The

Eleventh Court of Appeals __________

No. 11-13-00041-CV __________

NOORDIN BHAMANI AND NOORUDDIN T. “NICK” BHAMANI, Appellants V. CITIZENS ENTERPRISES, INC. AND MOHAMMAD SIDDIQUE, Appellees

On Appeal from the 67th District Court Tarrant County, Texas Trial Court Cause No. 067-249329-10

MEMORANDUM OPINION This appeal arises out of a commercial lease dispute between Noordin Bhamani (Bhamani) and his landlord, Citizens Enterprises, Inc. Citizens sued Bhamani for breach of two commercial leases. The first one, signed in 2007, was for the lease of a convenience store with an amendment for additional space: a liquor store next to the convenience store. The second lease, signed in 2010, was just for the liquor store. Citizens pleaded for $54,235.68 in damages from Bhamani for delinquent rent and other obligations owed by Bhamani. Bhamani, joined by his brother and third-party plaintiff, Nooruddin T. “Nick” Bhamani, counterclaimed and alleged usury, conversion, breach of contract, and other claims against Citizens and Mohammad Siddique. After a bench trial, the trial court entered judgment in favor of Citizens and awarded it $30,000 in damages and $30,000 in attorney’s fees from Bhamani; the trial court also entered judgment that the Bhamanis take nothing on their counterclaims.1 Bhamani asserts six issues on appeal. We affirm. I. Evidence at Trial In 2006, Muhammad Yousuf Ahmed executed a lease in which he leased from Citizens a convenience store in Hillsboro. Ahmed assigned that lease to Bhamani, who operated the store; Ahmed never operated the store. Citizens owned the convenience store and the real property, and Siddique was the sole officer, director, and shareholder of Citizens. Bhamani testified that, when he signed the agreement with Ahmed, he paid Citizens $165,000 in cash along with two $5,000 cashier’s checks to purchase the goodwill of the convenience store business.2 Siddique denied that he ever received a $165,000 cash payment and asserted that he only received two $5,000 checks for payment on the first month’s rent or a partial payment on store inventory. Later, Bhamani terminated his

1 The trial court, in its conclusions of law, concluded that “Third Party Plaintiff Nooruddin [Nick] Bhamani has no standing to pursue claims against Citizens” as there was no legal relationship between them. We note that, in this appeal, Noordin and Nick Bhamani have not challenged the trial court’s ruling on standing, and that issue is not before us. Consequently, we refer to Bhamani as being the appellant (in singular form) in the remainder of our opinion. 2 No documents reflect a sale of the goodwill of the convenience store business.

2 assignment, and Ahmed terminated the lease with Citizens; Bhamani then signed a new lease with Citizens (2007 Lease). Siddique testified that, while the 2007 Lease was in effect, Bhamani approached him with the idea to convert the unused car wash, which was next to the convenience store, into Mojos Liquor; Bhamani wanted to remodel and occupy that space. Bhamani repeatedly asked Siddique to allow construction of Mojos Liquor. Siddique eventually agreed to do so. Bhamani testified that he never signed a contract with anyone for the design or construction of Mojos Liquor and that he had no involvement with its construction; he claimed that he was just a tenant. Sepehr Parnian, a civil engineer, testified that Bhamani retained him for the design of the exterior of Mojos Liquor, including obtaining the permits to complete the construction. Citizens then introduced a contract between Bhamani and Parnian’s company for design and other work done related to the construction of the liquor store and introduced a copy of a $5,000 check, signed by Bhamani, for partial payment for those services.3 Once the car wash was converted into Mojos Liquor, Bhamani entered into an amendment of the 2007 Lease to reflect the addition of the liquor store.4 Citizens asserted that it received $40,000 for partial payment for the construction of the liquor store and Bhamani’s ownership of the liquor store business; Bhamani did not own the premises. Bhamani testified that the $40,000 payment was for advanced rent. Nick Bhamani also claimed the $40,000 was part of a $50,000 payment for advanced rent, but he later contradicted that claim when

3 The contract and check were admitted over Bhamani’s objection. 4 Citizens signed the amendment in 2008, and although Bhamani immediately occupied and operated the liquor store after its construction, he did not sign the amendment until April 2009.

3 he said the payment was for ownership of the liquor store business.5 Citizens denied that Bhamani had ever paid $50,000 for rent and, instead, asserted that he had only paid $40,000 for the construction of the liquor store and ownership of the business. In 2009, Bhamani struggled to timely make rent payments. Siddique sent Bhamani invoices monthly that outlined the current and past-due rent, current and accrued late fees, and other amounts owed. Siddique testified that Bhamani never disputed the invoices, though Bhamani claimed otherwise and testified that he had objected to some charges. Citizens sent Bhamani a demand letter in November 2009, demanding that Bhamani cure his default and make timely payments for rent. Bhamani failed to do so and continued to have a past-due balance. Citizens wanted the leases to continue, but only if Bhamani made timely rent payments. In October 2010, Citizens sent Bhamani another letter to inform him that Citizens had terminated the 2007 Lease and its amendment because Bhamani had failed to timely pay rent. Citizens did not want to terminate the lease but did so because Bhamani failed to meet his obligations. Citizens located a new tenant for the convenience store, but Bhamani continued to occupy and operate the liquor store with Citizens’s permission. Bhamani and the new tenant met to account for the convenience store’s inventory. Siddique insisted that money from the sale of the inventory go into an escrow account for payment of past-due rent and outstanding bills owed by Bhamani. Litigation began in Hill County over the inventory sale; later, Citizens and Bhamani signed a Rule 11 Agreement to create the escrow account and distribute funds to pay for past-due rent and to pay other creditors of Bhamani. As

5 The amendment to the 2007 Lease indicates that, if Citizens sold the property, it would have to execute a separate sales contract that included only the value of the liquor store business. Citizens claimed this was because Bhamani paid for the liquor store business and, thus, would be owed the proceeds from its sale, if such sale occurred.

4 part of the agreement, Citizens agreed to continue, on a month-to-month basis, to lease Mojos Liquor to Bhamani. Citizens and Bhamani entered into another lease agreement, in December 2010 (2010 Lease), for a $3,000 per month rental rate. The 2010 Lease contained a “Special Provision” whereby Bhamani agreed to pay the then outstanding $42,250.84 worth of past-due rent still owed from the 2007 Lease and amendment. Bhamani continued to occupy and operate Mojos Liquor for another year until Citizens terminated the agreement in December 2011 because Bhamani failed to pay rent. The final four checks Bhamani wrote for rent payments were returned for insufficient funds. The trial court found that Bhamani breached the 2007 Lease and the lease amendment by failing to pay rent, carry insurance, pay personal property taxes, pay sales taxes, and pay the fuel supplier and that Citizens incurred damages. Further, the trial court found that Citizens did not materially breach the 2007 Lease or the lease amendment. Bhamani now appeals. II.

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Noordin Bhamani and Nooruddin T. "Nick" Bhamani v. Citizens Enterprises, Inc. and Mohammad Siddique, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noordin-bhamani-and-nooruddin-t-nick-bhamani-v-cit-texapp-2015.