Sixteen Plus Corporation v. Manal Mohammad Yousef Counterclaimant

CourtSuperior Court of The Virgin Islands
DecidedMarch 16, 2020
DocketSX-16-CV-65, SX16-CV-650, SX-17-CV-342
StatusPublished

This text of Sixteen Plus Corporation v. Manal Mohammad Yousef Counterclaimant (Sixteen Plus Corporation v. Manal Mohammad Yousef Counterclaimant) is published on Counsel Stack Legal Research, covering Superior Court of The Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Sixteen Plus Corporation v. Manal Mohammad Yousef Counterclaimant, (visuper 2020).

Opinion

FOR OFFICIAL PUBLICATION

SUPERIOR COURT OF THE VIRGIN ISLANDS DIVISION OF ST CROIX

SIXTEEN PLUS CORPORATION ) CASE NO SX 16 CV 065 Plaintiff, ) ) ACTION FOR DECLARATORY IUDGMENT V I ) [URY TRIAL DEMANDED MANAL MOHAMMAD YOUSEF ) Defendant/ ] Counterclaimant )

HISHAM HAMED derivatively on behalf 5 ] CASE NO SX 16 CV 650 of SIXTEEN PLUS CORPORATION ) Plaintiff ) DERIVATIVE SHAREHOLDER SUIT ACTION ) FOR DAMAGES AND CICO RELIEF V ) ) JURY TRIAL DEMANDED FATHI YUSUF ISAM YOUSEF and JAMIL ) YOUSEF ] Defendants, ) ) and ] ) SIXTEEN PLUS CORPORATION ) Nominal Defendant ) ; MANAL MOHAMMAD YOUSEF a/k/a ) CASE NO SX 17 CV 342 MANAL MOHAMAD YOUSEF ] Plaintiff ) ACTION FOR DEBT AND FORECLOSURE OF ) REAL PROPERTY MORTGAGE V )) * * *

SIXTEEN PLUS CORPORATION ) Defendant / Counterclaimant / ) Consolidated with 8X 16 CV 065 Third Party Plaintiff, ) ) V ) FATHI YUSUF ) Third Party Defendant ) I Sixteen Plus Corp v Yousef/ Hamed v Yusufi et a! / Yousefv Sixteen Plus Corp, er al 2020 VI Super 43 CASE NOS SX 16 CV 065 / 8X 16 CV 650 / 5X 17 CV 342 MEMORANDUM OPINION Page 2 of 17

Cite as 2020 VI Super 43

Appearances

JOEL H HOLT ESQ Law Offices of Joel H Holt Christiansted VI 00820 For Sixteen Plus Corporation and stham Horned

CARL] HARTMANN Ill ESQ Christiansted VI 00820 For Sixteen Plus Corporation and Hisham Hamed

MARKW ECKARD ESQ Hamm Eckard LLP Gallows Bay VI 00820 For Sixteen Plus Corporation and Hisham Hamed

GREGORY H HODGES ESQ CHARLOTTE PERRELL ESQ LISA MICHELLE KOMIVES ESQ Dudley Newman Feuerzeig LLP St Thomas V100804 For Fathi Yusuf

JAMES L HYMES III Law Office ofjames L Hymes, P C St Thomas Vi 00802 For Mann] Mohammad Yousefi lsam Yousefi and jam! Yousef

MEMORANDUM OPINION MOLLOY judge 111 THESE MATTERS came before the Court for a hearing on whether they require exceptional judicial management to avoid placing unnecessary burdens on the court or the litigants and to expedite the case keep costs reasonable and promote effective decision making by the court the parties and counsel VI R Civ P 92(a) Although this Court does believe that these cases do warrant exceptional judicial management, the Court concludes that transferring them to the Complex Litigation Division would be counterproductive Several related cases are being presided over by another judge with the assistance of a judicial master Assigning related cases to the same Sixteen Plus Corp v Yousef/ flamed v Yusuf, et a! / Yousefv Sixteen Plus Corp et a] 2020 V1 Super 43 CASE NOS 8x 16 CV 065/SX 16 CV 650/SX 17 CV 342 MEMORANDUM OPINION Page 3 of 17

judge can be more efficient because the judge then has knowledge of both cases and their respective procedural histories and can issue any other orders short of formal consolidation to avoid unnecessary cost or delay In re Kelvm Manbodh Asbestos thlg Series 69 V l 394, 422 (Super Ct 2018) (quotingV I R Civ P 42(a)(3) However only the above captioned cases were referred for a determination whether they should be designated as complex Accordingly for the reasons stated below, the Court declines to designate the cases as complex I FACTUAL AND PROCEDURAL BACKGROUND 112 In an August 16, 2019 Order the Honorable Iomo Meade referred the above captioned cases to the undersigned judicial officer pursuant to Virgin islands Rule of Civil Procedure 92(e)(1] to consider and determine whether th[e] case[s] should be treated as complex subject to the provisions of (b)(c) and (d) of this Rule (Order 2 entered Aug 21, 2019) The Clerks Office forwarded the cases to the Complex Litigation Division after which this Court issued an order scheduling a hearing and granted each party leave to file one brief as to whether the cases should be designated as complex The Court also directed that any party 5 appearance at the hearing [would not] be construed as a waiver of any preserved defense or objection to the jurisdiction of the Superior Court ofthe Virgin Islands (Order 2 entered Sept 3 2019 ) Manal Mohammad Yousef ( Manal ) Isam Yousuf( Isam ) and lamilYousuf( Jamil”), and Hisham Hamed( Hisham ), Sixteen Plus Corporation ( Sixteen Plus ) and Fathi Yusuf ( Fathi ) filed briefs 1 Counsel for Fathi and counsel for Hisham and Sixteen Plus appeared at the hearing and argued their respective positions Counsel for Manal Isam and Jamil had asked to be excused 113 Some background is necessary to explain what Fathi refers to as the protracted and acrimonious litigation related to the families long term ioint business interests which encompasses multiple civil cases pending in the courts of the Virgin islands including the main case between the parties Hamed v Yusuf, et a] Case No SX 12 CV 370 and assigned to the Honorable Douglas A Brady (Fathi s Opp n to Transfer to Complex Lit Div 2 filed Sept 3 2019 (hereinafter Fathi Opp n ) ) The dispute between Fathi and Mohammad A Flamed ( Mohammad ] specifically and the Hameds and the Yusufs in general has generated no fewer than nineteen cases

1 Because several parties are both plaintiffs and defendants and further because multiple people with the same last names are parties to several cases related to the above captioned cases the parties will be referred to by their first names throughout this Opinion to avoid confusion Sixteen Plus Corp v Yousef/ Hamed v Yusufi er a1 / Yousefv Sixteen Plus Corp , at a] 2020 VI Super 43 CASE NOS 8x 16 CV 065 / 5x 16 CV 650 / 8X 17 CV 342 MEMORANDUM OPINION Page 4 of 17

in the Virgin Islands courts judge Meade only referred the three cases captioned above for a determination because the other cases are assigned to different judges But the Court must address all the cases to tell the broader story ‘[[4 The dispute between the Hameds and the Yusufs was summarized in Yusufv Horned 59 V l 841 [2013) Yusufand Hamed grew up as neighbors in a village in the West Bank In 1973 Hamed immigrated to the United States settling on St Croix where Yusuf lived with his wife Several years later in 1979 Yusuf incorporated United Corporation as a Virgin Islands corporation and began constructing the Plaza Extra supermarket in a shopping center owned by United in Estate Sion Farm on St Croix After Yusuf was unable to secure funding to complete the store Hamed sold his two grocery stores and invested a total of $400,000 into the Sion Farm store According to Hamed, this investment resulted in an equal partnership between Yusuf and Hamed after other investors abandoned the project

The Sion Farm store opened in 1986 with Yusufhandling the financial aspects ofthe business and Hamed managing the store 5 inventory and warehouse The Sion Farm store (colloquially known as Plaza East ] proved successful, leading to the construction of two more stores one in Tutu Park Mall on St Thomas in 1993 and another in Grove Place on the west end of St Croix (referred to colloquially as Plaza West ) in 2002 in 1996 Hamed retired from his role in the operations ofthe business due to illness giving a power of attorney and delegating his management responsibilities to one of his sons Waleed Hamed After Mohammad Hamed s retirement the Yusufand Hamed families continued joint management of the stores with members of both families co managing each store

In 2003 United and members of the Yusuf and Hamed families were indicted in the District Court of the Virgin Islands for tax evasion resulting in a plea agreement entered in 2011 Pursuant to the agreement, United agreed to plead guilty to tax evasion and the charges against the individual members of both families were dismissed As a result of the criminal proceeding a federal receiver was appointed to oversee the profits from the Plaza Extra stores in 2003 holding these funds in escrow outside of the parties control

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Related

Stoner v. Bellows
2 V.I. 172 (Virgin Islands, 1951)
Hamed v. Yusuf
58 V.I. 117 (Superior Court of The Virgin Islands, 2013)
Yusuf v. Hamed
62 V.I. 565 (Supreme Court of The Virgin Islands, 2015)
Sixteen Plus Corporation v. Manal Mohammad Yousef
Superior Court of The Virgin Islands, 2020

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