Ali v. Abu Omar Halal LLC et al

OMAIA ALI,
Plaintiff,
v.
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
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§
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§ 	Civil Action No. H-25-3410
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ABU OMAR HALAL LLC,·et. al., 	§
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Defendants. 	§
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ORDER
Pending 	before 	the 	Court 	is 	Defendants' 	Abu 	Omar 	Halal 	LLC 	and
Mohammad Altawaha's Motion to Compel Arbitration and to Stay Proceedings and
Deadlines (Document No. 15). Having considered the motion, submissions, and
applicable law, the Court determines that the motion should be granted.
I. BACKGROUND
This is a case involving alleged Fair Labor Standards Act violations. On
September 1, 2022, Plaintiff Omaia Ali ("Plaintiff') began working on a food truck
for Defendants Ahmed Kilani, Akilane, LLC, Mohammad Altawaha, and Abu Omar
Halal, LLC ("Abu Omar Halal") (collectively "Defendants"). Plaintiff worked on
several food trucks operated by Defendant Akilane, LLC and owned by Defendant
Abu Omar Halal, LLC. Defendant Ahmed Kilani ("Kilani") was his supervisor.
Sometime in early 2024, Plaintiff began working on an additional food truck, also
owned by Abu Omar Halal, but was supervised directly by Abu Omar Halal's owner,
United States District Court
Southern District of Texas
ENTERED
April 09, 2026
Nathan Ochsner, Clerk
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Defendant Altawaha. 	On February 	15, 2024, Defendant terminated Plaintiffs
employment "because he was working a side job."1 Plaintiff alleges that, during the
course of his employment with the aforementioned Defendants prior to November
23, 2024, he was 	an at-will employee and had not entered into any 	formal
. employment agreement. 2 Nonetheless, on November 23, 2024, Plaintiff ultimately
did enter an employment agreement ("Agreement") with Abu Omar Halal. The
Agreement described Plaintiff as an at-will employee and identified Plaintiffs
compensation.as 50% of the food truck's net profits, of which there were none.
Based on the foregoing, on July 24, 2025, Plaintiff filed suit in this Court
asserting claims for violations of the Fair Labor Standards Act, violation of the Texas
Labor Code, violation of the Texas Payday Law, and fraud. 3 On November 19, 2025,
Defendants Abu Omar Halal and Altawaha filed the present motion to compel
arbitration and stay the current matter. 4 On December 10, 2025, Plaintiff responded
in opposition to Defendants Abu Omar Halal and Altawaha's motion to compel
arbitration. 5
1 Plaintiff's Original Complaint, Document No. 2 at 2.
2 Plaintiff's Original Complaint, Document No. 2 at 3.
3 Plaintiff's Original Complaint, Document No. 2 at 11-14.
4 Defendants Abu Omar Halal LLC and Mohammad Altawaha 's Motion to Compel
Arbitration and to Stay Proceedings and Deadlines, Document No. 15 at 1.
5 Plaintiff's Response to Defendants' Abu Omar Halal, LLC 's and Mohammad
Altdwaha 's Motion to Compel Arbitration (ECF 15), Document No. 20 at 1.
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II. STANDARD OF REVIEW
The Federal Arbitration Act allows a party "aggrieved by the alleged failure,
neglect, or refusal of another to arbitrate under a written agreement for arbitration"
to petition the Court and move to compel arbitration. 9 U.S.C. § 4; Am. Bankers Ins.
Co. of Fla. v. Inman, 436 F.3d 490,493 (5th Cir. 2006). Upon finding that a valid
arbitration agreement exists and that one of the parties has failed to comply with the
arbitration agreement, ."the court shall make an order directing the parties to proceed
to arbitration in accordance with the terms of the agreement." 	9 U.S.C. § 4. 	It is
well established that when the parties have agreed to submit to binding arbitration,
the court must compel arbitration-"the Act leaves no place for the exercise of
discretion by a district court, but instead mandates that district courts shall direct the
I
parties to proceed to arbitrati_on on issues as to which an arbitration agreement has
been signed." Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213,218 (1985).
Courts employ a two-step analysis to determine whether a motion to compel
arbitration should be granted. 	"First, a court must determine whether the parties
agreed to arbitrate the dispute in question. Second, a court must determine whether
legal constraints external to the parties' agreement foreclosed the arbitration of those
claims." Tittle v. Enron Corp., 463 F.3d 410,418 (5th Cir. 2006) (citations omitted)
(internal quotation marks omitted). When determining whether the parties agreed to
arbitrate, the Court must consider "( 1) whether there is a valid agreement to arbitrate
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between the parties; and (2) whether the dispute in question falls within the scope of
that arbitration agreement." Id.
III. LAW & ANALYSIS
Defendants Abu Omar Halal and Altawaha move to compel arbitration
contending that "[a] valid agreement to arbitrate exists." 6 In response, Plaintiff
contends 	that the 	arbitration 	agreement 	is 	inapplicable 	to 	Plaintiffs 	claims,
unenforceable as to Defendant Altawaha, invalid due to lack of consideration, and
unconscionable in its entirety. 7 In considering Defendants Abu Omar Halal and
Altawaha' s motion to compel arbitration, the Court has considered, in detail, the
language of the arbitration agreement which states: "All disputes arising out of or
related to 	this 	Agreement or the 	Employee's 	employment 	shall 	be resolved
exclusively through binding arbitration administered by the American Arbitration
Association."8 The Court will consider, in tum, each of Plaintiffs contentions in
response to Defendants' motion.
6 Defendants Abu Omar Halal LLC and Mohammad Altawaha 's Motion to Compel
Arbitration and to Stay Proceedings and Deadlines, Document No. 15 at 2.
7 Plaintiff's Response to Defendants' Abu Omar Halal, LLC 's and Mohammad
Altawaha's Motion to Compel Arbitration (ECF 15), Document No. 20 at 7-14.
8 Defendants Abu Omar Halal LLC and Mohammad Altawaha 's Motion to Compel
Arbitration and to Stay Proceedings and Deadlines, Document No. 15, Exhibit A at 5
(Arbitration Agreement).
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A. Applicability of the Arbitration Clause to Plaintiff's Claims
Defendants move to compel arbitration of Plaintiffs claims contending, in .
relevant part, that "Plaintiffs claims fall within the scope of the clause." 9 In
response, Plaintiff contends that "Defendants have not shown that the arbitration
clause covers Plaintiffs pre-agreement FLSA and wage claims[.]" 10
Broad 	arbitration 	clauses 	are 	capable 	of 	expansive 	reach. 	See 	Pennzoil
Exploration and Production Co. v. Ramco Energy Ltd., 139 F.3d 1061, 1067 (5th
Cir. 1998) (citing Prima Paint Corp. v. Flood & Conklin Mfg. Co, 388 U.S. 395,
397-98 	(1967) ("labelling 	as 	'broad' 	a clause requiring 	arbitration 	of '[a]ny
controversy or claim arising out of or relation to this Agreement'"). In response to
Defendants' motion, Plaintiff contends that at least some of his claims should not be
arbitrated because the alleged wage violations predated the Agreement, and because
the 	Agreement 	contains 	no 	"clear 	retroactive 	language[.]" 11 In 	considering
Plaintiffs contention, the Court has reviewed the language of the Agreement stating,
in relevant part, that "[a]ll disputes arising out of or related to this Agreement or the
Employee's 	employment 	shall 	be 	resolved 	exclusively 	through 	binding
9 Defendants Abu Omar Halal LLC and Mohammad Altawaha 's Motion to Compel
Arbitration and to Stay Proceedings and Deadlines, Document No. 15 at 2.
10 Plaintiff's Response to Defendants' Abu Omar Halal, LLC 's and Mohammad
Altawaha 's Motion to Compel Arbitration (ECF 15), Document No. 20 at 7.
11 Plaintiff's Response to Defendants' Abu Omar Halal, LLC's and Mohammad
Altawaha 's Motion to Compel Arbitration (ECF 15), Document No. 20 at 8.
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arbitration[.]" 12 Plaintiff does 	not 	contest 	that 	his 	claims 	are 	related 	to 	his
employment. Based on the foregoing, and the Fifth Circuit's clear guidance that
broad arbitration clauses have expansive reach, the Court finds that Plaintiffs
claims, to the extent they pre-date the Agreement, are covered by the arbitration
Agreement. The Court will now consider Plaintiffs argument as 	it relates to
enforcement of the Agreement by Defendant Altawaha.
B. Defendant Altawaha 's Enforcement of the Arbitration Clause
Defendants Abu Omar Halal and Altawaha move to compel arbitration pursuant
to 	"a written Employment Agreement[.]" 13 In response, Plaintiff contends that
Defendant Altawaha, a non-signatory to the Agreement, cannot compel arbitration. 14
The Fifth Circuit generally recognizes six theories in which a non-signatory is bound
to an arbitration agreement: "(a) incorporation by reference; (b) assumption; (c)
agency; (d) viel-piercing/alter ego; (e) estoppel; and (f) third-party beneficiary."
Bridas S.A.P.1 C. v. Government of Turkmenistan, 345 F.3d 347,356 (5th Cir. 2003).
Here, Plaintiff contends that "[b]ecause Defendants have not established any
recognized non-signatory theory, the Court should hold that Defendant Altawaha, in
12 Arbitration Agreement, Document No. 15 at 5.
13 Defendants Abu Omar Halal LLC and Mohammad Altawaha 's Motion to Compel
Arbitration and to Stay Proceedings and Deadlines, Document No. 15 at 1.
14 See Plaintiff's Response to Defendants' Abu Omar Halal, LLC 's and Mohammad
Altawaha 's Motion to Compel Arbitration (ECF 15), Document No. 20 at 9.
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his individual capacity, cannot compel Plaintiff to arbitrate his FLSA, wage, and
fraud claims." 15 In considering Defendants' motion, the Court has reviewed the
Agreement, in detail, and notes that the Agreement was "by and between Abu Omar
Halal 	LLC 	. 	. 	. 	(the 	"Company"), 	and 	Omaia 	Eyad 	Mahmoud 	Ali 	(the
"Employee")[.]" 16 However, the 	Court further notes that Defendant Altawaha
executed the Agreement on behalf of Defendant Abu Omar Halal as the company's
president. 17 Lastly, the Court has considered the nature of Plaintiff's claims and finds
that 	Plaintiffs 	claims 	against 	Defendant 	Altawaha 	arise 	out 	of 	Plaintiffs
employment with Defendant Abu Omar Halal. 18 Based on the foregoing, and the
clear guidance 	of the Fifth Circuit on when a non-signatory may enforce an
arbitration agreement, the Court finds that Defendant Altawaha was acting as an
agent of Defendant Abu Omar Halal in executing the Agreement, and thus, finds that
Defendant Altawaha may enforce arbitration pursuant to the Agreement. The Court
will now consider Plaintiffs contentions as they relate to lack of consideration.
15 Plaintiff's Response to Defendants' Abu Omar Halal, LLC's and Mohammad
Altawaha 's Motion to Compel Arbitration (ECF 15), Document No. 20 at 11.
16 Arbitration Agreement, Document No. 15 at 1.
17 Arbitration Agreement, Document No. 15 at 6.
18 See Plaintiff's Complaint, Document No. 2 at 17 ("Mr. Altawaha and Mr. Kilani
acted on behalf of Abu Omar Halal, LLC in setting working hours, they are jointly and
severally liable.").
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C. Consideration
In response to Defendants' current motion, Plaintiff contends, in relevant part,
that "[t]he 	arbitration 	clause 	is 	void 	for 	lack 	of consideration 	and 	because
Defendants' promise to arbitrate is illusory." "When deciding whether the parties
agreed to arbitrate a certain matter ... courts generally ... should apply the ordinary
state-law principles that govern the formation 	of contracts." 	First Options 	of
Chicago, Inc. v. Kaplan, 514 U.S. 938, 944 (1995). "In the context of stand-alone
arbitration agreements, binding promises are required on both sides as they are the
only consideration rendered to create a contract." In re AdvancePCS Health L.P.,
172 S.W.3d 603, 607 (Tex. 2005) (further holding that "[b]ut when an arbitration
clause is part of an underlying contract, the rest of the parties' agreement provides
the consideration.").
Here, Plaintiff contends that the Agreement should not be enforced because
"(a) no new consideration was provided for the post-employment agreement, and (b)
Defendants' 	promise 	to 	arbitrate 	is 	illusory." 19 The 	Court 	has 	reviewed 	the
Agreement and notes the language of the arbitration clause requiring "[a]ll disputes"
to be arbitrated. 20 Plaintiffs response to Defendants' present motion, nor the Court's
own independent review of the Agreement, reveals any clause that suggests the
19 Plaintiff's Response to Defendants' Abu Omar Halal, LLC 'sand Mohammad
Altawaha 's Motion to Compel Arbitration (ECF 15), Document No. 20 at 12.
20 Arbitration Agreement, Document No. 15 at 5.
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agreement to arbitrate is not bilateral. As such, the Court finds that there is a binding
promise on both sides to arbitrate all claims. With respect to Plaintiffs contention
that Defendants' promise is illusory, the Court declines to consider Defendants'
rights contained within the contract as evidence of a unilateral arbitration agreement
in light of the clear language of the arbitration clause. Given the Court's finding that
the Agreement requires both sides to arbitrate, the Court finds that the Agreement
does not lack consideration, and thus, should be enforced. Lastly, the Court will
consider Plaintiffs contentions as they relate to unconscionability.
D. Unconscionability
Defendants 	Abu 	Omar 	Halal 	and 	Altawaha 	move 	to 	compel 	arbitration
contending that "[a] valid agreement to arbitrate exists." 21 In response, Plaintiff
contends 	that 	the 	arbitration 	clause 	is 	both 	substantively 	and 	procedurally
unconscionable, and thus, unenforceable. 22
"When deciding whether the parties agreed to arbitrate a certain matter ... courts
generally ... should apply the ordinary state-law principles that govern the formation
of contracts." First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938, 944 (1995).
Unconscionable contracts are unenforceable under Texas law. In Re Poly-America,
21 Defendants Abu Omar Halal LLC and Mohammad Altawaha 's Motion to Compel
Arbitration and to Stay Proceedings and Deadlines, Document No. 15 at 2.
22 See Plaintiff's Response to Defendants' Abu Omar Halal, LLC's and Mohammad
Altawaha 's Motion to Compel Arbitration (ECF 15), Document No. 20 at 14.
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L.P., 	262 S.W.3d 337, 348 (2008) (citation omitted). Generally, a contract 1s
considered unconscionable "if it is grossly one-sided." Id.
Here, 	Plaintiff contends 	that the 	arbitration 	agreement 	1s 	substantively
unconscionable because it is "part of an illegal scheme designed to evade the
FLSA[.]" 23 Defendant further contends that the arbitration agreement is procedurally
unconscionable because "Plaintiff had no bargaining power and was presented the
agreement after years of coercive, unpaid labor[.]" 24 As such, Plaintiff contends that
Defendants' 	motion 	should 	be 	denied 	because 	the 	arbitration 	agreement 	is
unenforceable. A review of the record in this matter reveals that Plaintiff does not
appear to contest the conscionability of the arbitration agreement itself but rather the
conscionability of the contract that contains the arbitration agreement. Furthermore,
the Court has considered the clear language of the arbitration agreement stating, in
relevant part, that "[a]ll disputes" are to be arbitrated. 25
Given that the agreement to arbitrate is bilateral, the Court declines to find that
the arbitration agreement itself is grossly one-sided. Based on the foregoing, and the
Texas Supreme Court's clear guidance that an unconscionable contract is one that is
23 Plaintiff's Response to Defendants' Abu Omar Halal, LLC's and Mohammad
Altawaha 's Motion to Compel Arbitration (ECF 15), Document No. 20 at 14.
24 Plaintiff's Response to Defendants' Abu Omar Halal, LLC 's and Mohammad
Altawaha 's Motion to Compel Arbitration (ECF 15), Document No. 20 at 16.
25 Arbitration Agreement, Document No. 15 at 5.
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grossly 	one-sided, 	the 	Court 	finds 	that 	the 	arbitration 	agreement 	is 	not
unconscionable, and thus, enforceable. As such, the Court finds that Defendants Abu
Omar Halal and Altawaha's motion should be granted.
IV. CONCLUSION
Accordingly, the Court hereby
ORDERS that Defendants Abu Omar Halal LLC and Mohammad Altawaha's
Motion to Compel Arbitration and to Stay Proceedings and Deadlines (Document
No. 15) is GRANTED. The Court further
ORDERS that the claims against Defendants Abu Omar Halal LLC and
Mohammad Altawaha shall be submitted to arbitration in accordance with this Order
and pursuant to 	the terms 	of the 	arbitration provision included in the 	2024
Employment Agreement, submitted as Exhibit A to Defendants' motion to compel
arbitration.
ORDERS that ALL CLAIMS against ALL DEFENDANTS in this matter
are STAYED pending resolution ofthe claims to be arbitrated. The Court further
ORDERS that this matter is ADMINISTRATIVELY CLOSED pending the
resolution of the claims to be arbitrated.
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..
SIGNED at Houston, Texas, on this L 	day of April, 2026.
~f-JJL. 	.~ 	DAVID HITTNER
United States District Judge
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