Hassan Chahadeh v. Regions Bank
01-15-00656-CV
| Tex. App. | Jul 31, 2017Background
- Regions Bank sued Hassan Chahadeh on a commercial guaranty for CN Investors, LLC’s unpaid loan after foreclosure and sale of the secured property.
- Chahadeh signed commercial guaranties in 2006 and 2007 guaranteeing CN Investors’ loan; agreements included broad waiver language and a promise to pay “on demand.”
- Regions demanded payment from Chahadeh on September 3, 2010 (payment due by Sept. 13, 2010); suit was filed November 13, 2012.
- CN Investors/Nezami initially claimed the property was Nezami’s homestead; Nezami later renounced homestead status in a settlement with Regions and the property was sold, reducing the debt.
- Chahadeh counterclaimed for fraud, aiding and abetting breach of fiduciary duty, and declaratory relief (arguing the guaranty was void because the loan was a disguised home-equity loan); trial court granted summary judgment for Regions and severed Chahadeh’s third-party claim against Nezami.
Issues
| Issue | Plaintiff's Argument (Chahadeh) | Defendant's Argument (Regions) | Held |
|---|---|---|---|
| Accrual / statute of limitations on guaranty claim | Limitations began when CN Investors first missed payment (Oct. 2008); suit (Nov. 2012) is time-barred | Guaranty required demand; limitations began when Chahadeh failed to pay after Regions’ Sept. 13, 2010 demand; suit timely | Held for Regions: cause accrued on guaranty demand; suit filed within four years, so not barred |
| Aiding and abetting breach of fiduciary duty | Regions conspired with Nezami to renounce homestead and settle, causing injury and deficiency to Chahadeh | Regions acted to collect its loan (legitimate business purpose); guaranty waived exhaustion of other remedies; no evidence Regions participated in fiduciary breach | Held for Regions: no evidence of aiding/abetting; no actionable fiduciary claim against Regions as a matter of law |
| Validity of guaranty re: home-equity loan / homestead defense | Loan actually was a disguised home-equity loan secured by Nezami’s homestead, making guaranty void under Tex. Const. art. XVI §50(a)(6); factual dispute exists | Loan documents are commercial on their face; Chahadeh abandoned fraud claim and points to no contractual language proving a home-equity loan | Held for Regions: loan is commercial on its face; guaranty not void as matter of law; no viable declaratory relief |
| Severance & denial of motion to reconsider | Severance improperly split claims that are interwoven; trial court abused discretion by denying reconsideration | Summary judgment disposed all claims between Regions and Chahadeh; severance rendered judgment final and appealable | Held for Regions: no abuse of discretion; severance appropriate after summary judgment; motion to reconsider properly denied |
Key Cases Cited
- Valence Operating Co. v. Dorsett, 164 S.W.3d 656 (Tex. 2005) (standard of review for summary judgment)
- Provident Life & Accident Ins. Co. v. Knott, 128 S.W.3d 211 (Tex. 2003) (summary judgment review principles)
- Cathey v. Booth, 900 S.W.2d 339 (Tex. 1995) (defendant moving for summary judgment must disprove an element or conclusively establish affirmative defense)
- Centeq Realty, Inc. v. Siegler, 899 S.W.2d 195 (Tex. 1995) (summary-judgment burdens when defendant moves)
- Goodyear Tire & Rubber Co. v. Mayes, 236 S.W.3d 754 (Tex. 2007) (genuine issue of fact standard)
- Wiman v. Tomaszewicz, 877 S.W.2d 1 (Tex. App.—Dallas 1994) (accrual of guarantor claim tied to demand unless demand waived)
- Intermedics, Inc. v. Grady, 683 S.W.2d 842 (Tex. App.—Houston [1st Dist.] 1984) (demand/waiver principles in guaranty accrual)
- Chahadeh v. Jacinto Med. Group, P.A., 519 S.W.3d 242 (Tex. App.—Houston [1st Dist.] 2017) (contract interpretation—ascertain parties’ intent from instrument)
- KCM Fin. LLC v. Bradshaw, 457 S.W.3d 70 (Tex. 2015) (no fiduciary duty arises from ordinary arm’s-length business transactions)
- Nat’l Union Fire Ins. Co. v. Crocker, 246 S.W.3d 603 (Tex. 2008) (contracts interpreted by plain meaning when fraud claim abandoned)
- Wood v. HSBC Bank USA, N.A., 505 S.W.3d 542 (Tex. 2016) (limits on declaratory relief in home-equity loan context)
- In re Henry, 388 S.W.3d 719 (Tex. App.—Houston [1st Dist.] 2012) (standards on severance and appellate review)