Phoenix Motor v. Rajabian

CourtCourt of Appeals of Arizona
DecidedOctober 2, 2025
Docket1 CA-CV 24-0901
StatusPublished

This text of Phoenix Motor v. Rajabian (Phoenix Motor v. Rajabian) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phoenix Motor v. Rajabian, (Ark. Ct. App. 2025).

Opinion

IN THE ARIZONA COURT OF APPEALS DIVISION ONE

PHOENIX MOTOR COMPANY, INC., Plaintiff/Appellee/Cross-Appellant,

v.

ZAKIA JACKLINE RAJABIAN, et al., Defendants/Appellants/Cross- Appellees, and MICHAEL SIMON, et al., Defendants/Appellees.

No. 1 CA-CV 24-0901 FILED 10-02-2025

Appeal from the Superior Court in Maricopa County No. CV2022-003384 The Honorable Katherine Cooper, Judge The Honorable Scott Minder, Judge

REVERSED IN PART; AFFIRMED IN PART; REMANDED

COUNSEL

Schern Richardson Finter PLC, Mesa By Michael Andrew Schern, Michael R. Somers, Aaron Matthew Finter Attorneys for Defendants/Appellants/Cross-Appellees

Cohen Law Firm, Phoenix By Larry J. Cohen Co-Counsel for Plaintiff/Appellee/Cross-Appellant

Hendricks Murphy PLLC, Phoenix By Brendan Murphy Co-Counsel for Plaintiff/Appellee/Cross-Appellant PHOENIX MOTOR v. RAJABIAN, et al. Opinion of the Court

Schmidt Law Group PC, Scottsdale By Eric W. Schmidt Co-Counsel for Defendant/Appellee M. Simon et al.

Law Office of Jeffrey Issacson, Deerfield By Jeffrey Issacson Co-Counsel for Defendant/Appellee M. Simon et al.

Gallagher & Kennedy P.A., Phoenix By John C. Norling, Karin Aldama Attorneys for Amicus Curiae

Nick Kotoukian, Panorama City Defendant/Appellee

OPINION

Judge Andrew M. Jacobs delivered the opinion of the Court, in which Presiding Judge D. Steven Williams and Judge Michael S. Catlett joined.

J A C O B S, Judge:

¶1 “Oh! what a tangled web we weave, when first we practice to deceive!” Sir Walter Scott, Marmion: A Tale of Flodden Field (1808) (cleaned up). Especially when it concerns secretive efforts by one auto dealership to wrest ownership of a coveted 2021 Mercedes-Benz G63 AMG in Arabian Grey (“the G-Wagon”) from a rival dealership.

¶2 This appeal concerns conflicting claims of ownership of the G-Wagon, which everyone agrees was first owned by Mercedes-Benz of Chandler (“MB Chandler”). A group of would-be middlemen sold the G- Wagon to Phoenix Motor Company, better known as Mercedes-Benz of Scottsdale (“MB Scottsdale”) – except they didn’t own it, because they hadn’t yet purchased it from MB Chandler. Because a seller can’t convey title to something they don’t own, the superior court erred by finding MB Scottsdale owned the G-Wagon. Accordingly, we reverse the court’s summary judgment in favor of MB Scottsdale and against the titled owners of the G-Wagon, Zakia Jackline Rajabian and Dulceria La Bonita Wholesale, LLC (collectively, “Dulceria”). We remand to the superior court for further proceedings consistent with our decision that Dulceria owns the G-Wagon, as we explain in closer detail below.

2 PHOENIX MOTOR v. RAJABIAN, et al. Opinion of the Court

FACTS AND PROCEDURAL HISTORY

A. MB Scottsdale Agrees to Buy the G-Wagon Through the Would-Be Middleman Wholesale Exotics for $274,800.

¶3 A remarketer of cars, Frederick Aljundi of AMK Consulting, Inc. (“AMK”), approached Michael Cunningham, Director of Pre-Owned Acquisitions at MB Scottsdale, about MB Scottsdale’s interest in buying the G-Wagon. Aljundi was connected to Cunningham through a mutual contact, Michael Simon, the Chief Executive Officer of Wholesale Exotics, Inc. (“Wholesale Exotics”), which had a history of selling vehicles to MB Scottsdale. Cunningham and Aljundi agreed MB Scottsdale would buy the G-Wagon for $274,800 through Wholesale Exotics, which would act as a middleman to acquire it.

¶4 Wholesale Exotics took steps toward the intended purchase of the G-Wagon. On October 27, 2021, MB Scottsdale paid $274,800 to Wholesale Exotics and received a Wholesale Bill of Sale and Remittance Advice for the G-Wagon. The next day, MB Scottsdale received a payment receipt from Wholesale Exotics. On October 29, 2021, Mellisa Aunrea Huerta Karam, an associate of Aljundi, sent a California bill of sale to Wholesale Exotics, listing Karam as the seller and Wholesale Exotics as the buyer. And on November 1, 2021, Wholesale Exotics paid AMK $274,800.

B. Meanwhile, an Associate of AMK and Wholesale Exotics Buys the G-Wagon, But Fails to Provide It to MB Scottsdale.

¶5 On November 5, 2021, Nshan Kotoukian, an associate of Aljundi and AMK, bought the G-Wagon from MB Chandler for $251,926.03. MB Chandler had previously bought the G-Wagon from Mercedes-Benz USA (“MB USA”) on October 26, 2021. MB Chandler did not know Kotoukian was part of a plan to transfer the G-Wagon to MB Scottsdale and would not have sold it to him had it known MB Scottsdale was involved.

¶6 Two months later, Cunningham messaged Kotoukian because Wholesale Exotics had not delivered the G-Wagon to MB Scottsdale. Kotoukian responded that AMK would be keeping the G- Wagon and refunding MB Scottsdale’s payment, writing: “I only can tell you he’s going to keep that car and he’s going to refund your money and profits whatever you make it u can keep it he doesn’t want it that’s he told me last week!”.

3 PHOENIX MOTOR v. RAJABIAN, et al. Opinion of the Court

C. Kotoukian Trades the G-Wagon to MB North Scottsdale, Which Sells it to Dulceria.

¶7 Kotoukian traded the G-Wagon in to a different dealership, MB North Scottsdale, on January 28, 2022. Then, on February 8, 2022, MB North Scottsdale sold the G-Wagon to Dulceria. Neither MB North Scottsdale nor Dulceria knew of the prior arrangement between MB Scottsdale, AMK and Wholesale Exotics.

D. MB Scottsdale Sues Dulceria and Obtains the G-Wagon Through a Temporary Restraining Order Before the Arizona Supreme Court Orders its Return to Dulceria.

¶8 On March 18, 2022, MB Scottsdale sued Dulceria for conversion and sought a temporary restraining order (“TRO”) entitling it to take possession of the G-Wagon. The superior court granted the TRO without notice to Dulceria. MB Scottsdale took the G-Wagon from Dulceria’s storage locker.

¶9 Dulceria sought relief from the TRO in this court, which dismissed its appeal for lack of jurisdiction and denied it special action relief. Dulceria then turned to the Arizona Supreme Court, which took jurisdiction of its special action and remanded the “matter to the superior court to dissolve the [TRO] and proceed in compliance with A.R.S. §§ 12- 1301 to -1314.”

E. Dulceria Moves to Dismiss MB Scottsdale’s Complaint, and MB Scottsdale and Dulceria Move for Summary Judgment.

¶10 On August 12, 2022, Dulceria filed a motion to dismiss under Arizona Rule of Civil Procedure (“Rule”) 12(b)(6) and another for summary judgment. Between these two motions, Dulceria argued MB Scottsdale didn’t own the G-Wagon and had no valid claim for conversion. MB Scottsdale opposed the motions and cross-moved for summary judgment on ownership and possession.

¶11 On September 22, 2022, the superior court denied Dulceria’s motion to dismiss and sanctioned it, awarding fees and costs to MB Scottsdale under A.R.S. § 12-349(A). The court noted Dulceria’s motion was its third filing challenging MB Scottsdale’s allegations and ruled that by filing a simultaneous motion for summary judgment, Dulceria “indicate[d] that the [m]otion to [d]ismiss was not filed in good faith and that they expected the [c]ourt to deny it based on the [c]ourt’s prior rulings.” Dulceria sought reconsideration, which the court denied.

4 PHOENIX MOTOR v. RAJABIAN, et al. Opinion of the Court

F. The Superior Court Denies Dulceria’s Motion to Dismiss for Failure to Join Indispensable Party.

¶12 On October 2, 2022, Dulceria moved to dismiss MB Scottsdale’s claim for failure to join a supposedly indispensable party MB North Scottsdale, the dealership that directly sold Dulceria the G-Wagon.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Simpson v. Shaw
226 P.2d 557 (Arizona Supreme Court, 1951)
Hmielewski v. Maricopa County
960 P.2d 47 (Court of Appeals of Arizona, 1998)
Sears Consumer Financial Corp. v. Thunderbird Products
802 P.2d 1032 (Court of Appeals of Arizona, 1990)
Town of Gila Bend v. Walled Lake Door Company
490 P.2d 551 (Arizona Supreme Court, 1971)
Eller Media Co. v. City of Tucson
7 P.3d 136 (Court of Appeals of Arizona, 2000)
Reinke v. Alliance Towing
88 P.3d 1154 (Court of Appeals of Arizona, 2004)
Tilley v. Delci
204 P.3d 1082 (Court of Appeals of Arizona, 2009)
Keenen v. Biles
17 P.3d 111 (Court of Appeals of Arizona, 2001)
In re 1986 Chevrolet Corvette
905 P.2d 1372 (Arizona Supreme Court, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
Phoenix Motor v. Rajabian, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phoenix-motor-v-rajabian-arizctapp-2025.