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Hassan Chahadeh, M.D. v. Jacinto Medical Group, P.A. and Paradise Marketing and Consulting, L. P.
2017 Tex. App. LEXIS 2169
| Tex. App. | 2017
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Background

  • Hassan Chahadeh personally guaranteed three promissory notes made by Jacinto Medical Group, P.A. and Paradise Marketing & Consulting, L.P. (two guaranty agreements: one covering Jacinto note, one covering two Paradise notes).
  • The guaranties were expressed as unconditional "guaranty of payment," waiving collection defenses and stating the guarantor’s obligation would not be affected by the debtor’s bankruptcy.
  • University General Health System Inc. and University General Hospital, L.P. (UGH) defaulted; UGH filed Chapter 11 and appellees filed proofs of claim in bankruptcy.
  • Appellees demanded payment from Chahadeh; he refused. Appellees sued him in state court for breach of the guaranties and moved for traditional summary judgment.
  • Trial court granted summary judgment awarding a money judgment for principal and per‑diem interest; Chahadeh appealed, arguing lack of jurisdiction (bankruptcy exclusivity) and disputed damages calculations.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether bankruptcy court has exclusive jurisdiction over appellees’ claims against Chahadeh Appellees: state court has concurrent jurisdiction; suit is outside exclusive bankruptcy core Chahadeh: filing of proof of claim in bankruptcy vested exclusive jurisdiction in bankruptcy court over related claims State court had jurisdiction; bankruptcy exclusivity limited to the bankruptcy petition/allowance/disallowance of claims, not suits against non‑debtor guarantors
Whether appellees’ summary‑judgment evidence conclusively established liability Appellees: guaranties, promissory notes, demand letter, admissions, and CEO affidavit established (1) existence of guaranties, (2) UGH default, (3) demand, (4) nonpayment, and stated amounts and per‑diem interest Chahadeh: affidavit amounts conflict with Paradise bankruptcy claim creating fact issue on damages Evidence conclusively established breach and specified amounts; discrepancy explained by non‑guaranteed profit‑sharing claim, so no fact issue on damages

Key Cases Cited

  • Travelers Ins. Co. v. Joachim, 315 S.W.3d 860 (procedural standard for de novo summary judgment review)
  • KPMG Peat Marwick v. Harrison Cty. Hous. Fin. Corp., 988 S.W.2d 746 (movant’s burden on traditional summary judgment)
  • Cox v. Lerman, 949 S.W.2d 527 (distinguishing guaranty of payment from guaranty of collection)
  • Republic Nat’l Bank of Dallas v. Nw. Nat’l Bank of Fort Worth, 578 S.W.2d 109 (general guaranty principles)
  • In re Wood, 825 F.2d 90 (bankruptcy court jurisdiction—core proceedings)
  • Matter of Brady, 936 F.2d 212 (state courts have concurrent jurisdiction over matters "related to" bankruptcy)
  • Langenkamp v. Culp, 498 U.S. 42 (bankruptcy court’s exclusive jurisdiction to allow or disallow claims)
  • GATX Aircraft Corp. v. M/V Courtney Leigh, 768 F.2d 711 (legal inequity in barring creditor suits against guarantors because debtor filed bankruptcy)
Read the full case

Case Details

Case Name: Hassan Chahadeh, M.D. v. Jacinto Medical Group, P.A. and Paradise Marketing and Consulting, L. P.
Court Name: Court of Appeals of Texas
Date Published: Mar 14, 2017
Citation: 2017 Tex. App. LEXIS 2169
Docket Number: NO. 01-16-00347-CV
Court Abbreviation: Tex. App.