Azhar Chaudhary Law Firm, PC v. Ali

Full title: AZHAR CHAUDHARY LAW FIRM, PC, et al., Appellants, v. HAMZAH ALI, Appellee.

Court: United States District Court, Southern District of Texas

Date published: Aug 21, 2023

Civil Action 4:23-CV-01354 (S.D. Tex. Aug. 21, 2023)

Opinion

Civil Action 4:23-CV-01354

08-21-2023

AZHAR CHAUDHARY LAW FIRM, PC, et al., Appellants, v. HAMZAH ALI, Appellee.

KEITH P. ELLISON, UNITED STATES DISTRICT JUDGE

MEMORANDUM AND ORDER

KEITH P. ELLISON, UNITED STATES DISTRICT JUDGE

Plaintiff-Appellant Hamzah Ali (“Ali”) brought this adversary proceeding against debtor Riverstone Resort, LLC (“Debtor”) and Azhar Chaudhary Law Firm, PC (collectively “Chaudhary”) in bankruptcy court. Ali sought to obtain a declaratory judgment imposing a constructive trust against Debtor's single asset, its real estate (the “Property”).

Immediately before this adversary action went to trial, the Bankruptcy Court dismissed the Debtor's bankruptcy proceeding. The Court nonetheless retained jurisdiction over the adversary action between Ali and Chaudhary.

After hearing testimony and legal argument, the Court issued a 16-page Memorandum Opinion (ECF No. 138) and Judgment (ECF No. 139) holding that Ali should “take nothing” in its bid to obtain constructive trust on Debtor's Property. The Court based its decision on the holding that Ali's claim was barred by the applicable statute of limitations.

In the course of its Memorandum Opinion, the Court made other findings “because its findings may be useful to the parties.” ECF No. 138 at 1.

Chaudhary appeals the Memorandum Opinion and Judgment even through the Bankruptcy Court's holding was entirely favorable to Chaudhary. In the course of oral argument in this Court, counsel for Chaudhary made it clear that relief was sought not from Bankruptcy Court's holding, but from other aspects of the Memorandum Opinion that were unfavorable to Chaudhary.

Reviewing the Bankruptcy Court's Memorandum Opinion however, this Court concludes that the opinion simply sought to memorialize its rulings on issues that would be salient if an appellate court were to disagree about the statute of limitations bar. The Bankruptcy Court's findings and conclusions may be considered dicta at present, but depending on the appeals process, may be considered law of the case.

There is no reason to disturb the findings and conclusions of the Bankruptcy Court. The Bankruptcy Court's decision is AFFIRMED. The appeal is DISMISSED. All pending motions are DENIED as moot.

IT IS SO ORDERED.

SIGNED at Houston, Texas on this the 21^st day of August, 2023.