Free Memorandum in Opposition to Motion - District Court of Connecticut - Connecticut

Case 3:00-cv-00835-CFD Document 404 Filed 06/28/2004 Paget of 4
UNITED STATES DiSTRiCT COURT
DiSTRiCT OF CONNECTICUT
INDYIVIAC BANK, FSB.,
: CIVIL ACTION NO.
Plaintiff, : 3:00CV835(CFD)
v. :
I\/IOSTAFA REYAD and WAFA REYAD, JUNE 25, 2004
Defendants.
PLAINTIFF’S OPPOSITiON TO DEFEI\iDANTS’
MOTION TO ENJOIN PLAINTIFF TO RELEASE LIS PENDENS
Piaintiff Indy|\/lac Bank, FSB. ("PIaintiff” or “IndyI\/lac") submits the instant
memorandum in opposition to "Defendants’ Expedited Motion to Enioin Piaintiff to Reiease
Lis Pendence [sic] otf Defendants Daughters Reai Estate Property" dated I\/Iay 25, 2004
(Doc. # 395). Defendants request that this Court order Plaintiff to release the lis pendens
recorded with the Clerk ofthe Court for Bergen County, New Jersey, with respect to property
iocated in Edgewater, New Jersey (the "New Jersey Property"). Defendants recognize that
the lis pendens was authorized bythe United States District Court for the District ot New
Jersey on I\/Iay 12, 2000, as part of the pre-judgment remedies ordered by that Court in the
action between Piaintitf and Defendants pending in the District of New Jersey (the "New
Jersey Action").
By way of background tor the instant motion, i\/Ir. and Mrs. Reyad submitted a financiai
affidavit to indylviac dated February 4, 2000, in which they indicated that Mrs. Reyad owned
the New Jersey Property, and that its fair market value as of that date was $300,000. See
Plfs Triai Exhibit 28. When indy|\/lac (represented by separate New Jersey counsei)
instituted the New Jersey Action on II/lay 9, 2000, Mrs. Reyad was stili the record owner of
the New Jersey Property, and Indyh/iac requested permission to fiie a lis pendens on the
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Case 3:00-cv-00835-CFD Document 404 Filed 06/28/2004 Page 2 of 4
Property, as well as a preliminary injunction prohibiting Defendants from transferring,
encurnbering or otherwise disposing of any assets during the pendency of the New Jersey
Action.1 lndyh/iac’s request was granted, and on May 18, 2000, indyi\Aac caused to be
recorded with the County Cierk of Bergin County a iis pendens with respect to the New
Jersey Property. Unbeknownst to indylt/lac at the time the lis pendens was recorded, Mrs.
Reyad had executed a deed transferring her interest in the New Jersey Property to her
daughter, Dina R. Abousabe, on l\/iay 2, 2000, just days before the New Jersey Action was
initiated. Said deed was not recorded on the Bergin County iand records until after the New
Jersey Action was initiated, on i\/iay 12, 2000.
Now, following the triai of this action, Defendants have moved this Court to order
Piaintiff to release the iis pendens ordered in the New Jersey Action, claiming that the New
Jersey Property is valued at $1.2 million doilars and that i\/ls. Anousabe has entered into a
contract for the quick saie ofthe Property for $1 miiiion dollars, but the transaction is unable
to ciose due to the presence ofthe lis pendens. Plaintiff only recently became aware of the
above described transfer of property from Vi/afa Reyad to her daughter, and is in the process
of investigating this issue further.2 ln any event, Piaintiff maintains that the lis pendens is
appropriate, and Defendants have offered no justifiable reason for this Court to afford
Defendants the extraordinary remedy of issuing a mandatory injunction requiring lndylvlac to
release the lis pendens ordered in the New Jersey Action.
1 Indyl\Aac represented to the New Jersey Court in its motion papers that it did not seek
attachment of the New Jersey Property because the fiilng of a iis pendens in concert with a
preiiminary injunction would achieve the same effect of prohibiting the Defendants transfer or
encumbrance of that asset.
2 The undersigned counsei for Plaintiff aiso has been discussing with lvir. Reyad the
possibiiity of resolving this issue without the need forjudiciai involvement. Pialntiff delayed
filing the instant opposition memorandum in light oftnese discussions. However, as the
parties have not as of yet been able to reach an agreement, Plaintiff submits the instant
memorandum, and respectfuliy requests that the Court accept this memorandum one week
tate, due to the parties' aforementioned negotiations.
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Case 3:00-cv-00835-CFD Document 404 Filed 06/28/2004 Page 3 of 4
Forthese reasons, Plaintiff respectfuiiy requests that "Defendants’ Expedited Motion to
Enjoin Plaintiff to Retease Lis Pendence [sic] off Defendants Daughters Reel Estate
Property" dated May 25, 2004 (Doc. # 395) be denied.
F’i,AiNT|FF INDYMAC BANK, F.S.B.
Rovveee A. Moffett ({319811)
BRENNER, SALTZMAN & WALLMAN LLP
Their Attorneys
271 Whitney Avenue
RO. Box 1746
New Haven, CT 06507-1746
Tel. (203) 772-2600
Fax. (203) 772-4008
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Case 3:00-cv-00835-CFD Document 404 Filed 06/28/2004 Page 4 of 4
CERTIFICATE OF SERVICE
This is to certify that e true and accurate copy ofthe foregoing was served by Un§tecl
States first-class mail, postage prepaid, this 25m day ef June, 2004 upon:
l\/Iostafa Reyad
2077 Center Ave
#22D
Fort Lee, NJ 07024
Wafe Reyad
2077 Center Ave
#22D
Fort Lee, NJ 07024
Rowena A. Moffett (ct19811)
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