Appellate Judges

Currytown Corruption: Ali Khan’s Decade-long Default n’ Broken Promises Keeps $1M Rental Property Earning

Alleged Wife-Beater Ali F. Khan has been beatin’ foreclosure for a decade in this lawsuit, and the First COA Justice extends that sua sponte.

01-25-00163-CV

Ali Khan  The Bank of New York Mellon

03/06/2025

MAY 7, 2025

Above is the date LIT Last updated this article.

OBJECTION

On April 1, 2025, the Court, sua sponte, issued an order abating this appeal and referring the parties to mediation.

Appellees hereby object to the abatement and mediation order, and respectfully request that this appeal be placed back on the Court’s active docket without any requirement to mediate.

The gravamen of this matter is that Ali Khan (“Khan” or “Appellant”) breached a prior Settlement Agreement by repeatedly suing Appellees to stop (or at least stall) the foreclosure of 2006 Ivy Crest Court, Houston, Texas, which Khan rents out for profit.

In January of 2015, Khan sued Nationstar Mortgage LLC d/b/a Mr. Cooper. Ali Khan v. Nationstar Mortgage LLC, et al., No. 2015-00064, 215th Judicial District Court, Harris County, Texas.

The parties settled that case by entering into a Settlement Agreement and Release (“Settlement Agreement”) as of September 21, 2015 wherein Khan promised to pay off or reinstate the home-mortgage loan serviced by Nationstar on or before March 1, 2016.

(Ex. 1 at 1.C.1)

Khan further promised that, in the event he did not take one of those two actions, he would “not contest the foreclosure” of the mortgage.

(Id.)

In addition, Khan promised to vacate the property in the event he did not pay off or reinstate the mortgage by March 1, 2016, and that he would “not contest efforts by Nationstar, its agents or successors, or any purchaser at a foreclosure … to obtain possession of the property.”

(Id. at 1.D.)

Khan, however, thumbed his nose at those contractual obligations.

There is no dispute that Khan breached his obligations under the Settlement Agreement.

 

1 The Settlement Agreement is attached hereto, and it will be part of the trial court’s record in this appeal.

Indeed, he failed to make any further payments on the mortgage, he failed to relinquish the property, and, in violation of the Settlement Agreement, he filed a series of lawsuits challenging the foreclosure of the property.

First, Khan filed Ali Khan v. Nationstar Mortgage LLC, et al., No. 2017-36861, 215th Judicial District Court of Harris County, Texas (filed June 1, 2017; nonsuited by Khan on April 20, 2021).

Second, Khan filed Ali Khan v. The Bank of New York Mellon and Nationstar Mortgage LLC, No. 2022-17523, 151st Judicial District Court of Harris County, Texas (filed March 23, 2022; nonsuited by Khan on March 24, 2022).

Third, Khan filed Ali Khan v. The Bank of New York Mellon and Nationstar Mortgage LLC, No. 2022-51900, 151st Judicial District Court of Harris County, Texas (the instant matter, filed August 19, 2022).

In defiance of the Settlement Agreement, each of these suits expressly challenged the foreclosure of the property.2

In order to bring Khan’s bad-faith charade to an end, Nationstar asserted a counterclaim for breach of contract in the case below.

The jury then determined, among other things, that Khan breached the Settlement Agreement each time he filed suit to scuttle foreclosure.

(Ex. 2 at Question 2.3)

Given that Khan purposefully and admittedly breached the prior Settlement Agreement, Appellees object to the abatement of this appeal and to the order referring the parties to mediation.

Khan has never performed under any contract he entered with Nationstar; therefore, any settlement reached at mediation would be futile.

2 Notably, the same attorney, Walter Cicack, has represented Khan in each case, even in the first case that resulted in the Settlement Agreement.

(See Ex. 1 at 2.H.)

3 The Charge of the Court is attached hereto, and it will be part of the trial court’s record in this appeal.

As shown, Khan had his chance to resolve any issues between him and Appellees in 2015, yet the promises he made in the Settlement Agreement were not worth the paper they were written on.

This appeal should therefore proceed as usual.

And in fact, because Plaintiff has not superseded the judgment entered below, he should pay Appellees the amount of $431,500.96 for their attorney’s fees and $28,075.87 for their costs without any further delay.

See Ex. 3.4

CONCLUSION

In sum, and as found by the jury, Khan willfully breached the Settlement Agreement.

And because Khan’s post-settlement behavior and actions have shown that his promises are meaningless, it makes no sense to mediate with him again.

Appellees thus respectfully object to the Court’s abatement and mediation order, and they ask that this appeal be placed back on the Court’s active docket without any requirement to mediate.

This the 10th day of April, 2025.

Place 2

Jennifer Caughey is your Justice on the First Court of Appeals, Place 2. She was elected to a six year term on the Court, commencing on January 1, 2025. Before serving, Justice Caughey was most recently the Chair of Jackson Walker LLP’s Appellate Section, and she previously served as a Justice on Texas’s First Court of Appeals.

Justice Caughey spent six years as the Chair of Jackson Walker LLP’s Appellate Section, where she handled high-stakes commercial appeals. She appeared regularly at the Texas Supreme Court and in Texas Courts of Appeals, as well as in various federal appellate courts. Before that, she served as a Justice on this Court, where she issued 125 opinions and contributed to 450 appeals.

Beyond judicial service and private practice, Justice Caughey has served Texans in several ways. She serves on the Texas Judicial Council, the policy-making body for the State judiciary. She also served on the State’s Board of Disciplinary Appeals, which hears attorney disciplinary appeals. She serves on the Nominating Committee for the Texas Bar Foundation, and for several years, she chaired the Law School Liaison Committee for the Texas Appellate Bar Association.

Justice Caughey earned her degrees from Princeton University and Harvard Law School. After law school, she clerked for the Honorable Timothy M. Tymkovich, Chief Judge of the U.S. Court of Appeals for the Tenth Circuit, and Justice Robert J. Cordy of the Massachusetts Supreme Judicial Court. She then spent years developing a sophisticated appellate and trial practice.

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Currytown Corruption: Ali Khan’s Decade-long Default n’ Broken Promises Keeps $1M Rental Property Earning
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