Bank of America NA v. Ztar Mobile Inc et al

IN THE UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
BANK OF AMERICA, N.A., 	§
§
Plaintiff, 	§
§
V. 	§ 	No. 3:23-cv-826-BN
§
ZTAR MOBILE, INC. and KEVIN T. 	§
HADDAD, LLC, 	§
§
Defendants. 	§
MEMORANDUM OPINION AND CHARGING ORDER
After granting the motions for summary judgment filed by Plaintiff Bank of
America, N.A. (“BANA”), see Dkt. Nos. 80 & 92, the Court entered judgment on
November 6, 2025, awarding $7,141,290.14 in damages against Defendants Ztar
Mobile, Inc. and Kevin T. Haddad (“Mr. Haddad”), an amount that includes neither
post-judgment interest under 28 U.S.C. § 1961 nor BANA’s attorneys’ fees and costs,
see Dkt. No. 93.
Defendants noticed an appeal of the judgment. See Dkt. No. 96. But they did
not move the Court to stay it. Nor has the Court otherwise stayed the judgment. And
the 30-day automatic stay as to execution on the judgment and proceedings to enforce
it has expired. See FED . R. CIV. P. 62(a).
To enforce its judgment, BANA applied on February 11, 2026 for charging
orders against KC Haddad Management, LLC and KC Haddad Real Estate, LLC,
both limited liability companies organized under the laws of the State of Texas. See
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Dkt. Nos. 105 & 106. BANA has offered evidence that Mr. Haddad is a member and
manager of both LLCs. See Dkt. Nos. 105-1 & 106-1. And no objection to these
applications has been filed. See Dkt. Nos. 110 & 111; N.D. TEX. L. CIV. R. 7.1(e).
Absent a stay, a federal court may enforce a money judgment “in accordance
with the practice and procedure of the state in which the district court is held.” FED .
R. CIV. P. 69(a); see also Thomas v. Hughes, 27 F.4th 363, 368 (5th Cir. 2022) (“It is
axiomatic that federal courts possess inherent power to enforce their judgments.
Likewise, the Texas Supreme Court has held that every court having jurisdiction to
render a judgment has the inherent power to enforce its judgments and may employ
suitable methods” to do so. Those methods include, among other things, charging
orders and injunctive relief.” (cleaned up)).
“Texas law permits judgment creditors to seek a charging order of a member’s
LLC interest under section 101.112 of the Texas Business Organizations Code”; such
an 	“order 	‘constitutes 	a 	lien 	on 	the 	judgment 	debtor’s 	membership 	interest.’”
Edgefield Holdings, LLC v. Willowbrook Imaging LLC, No. 3:17-cv-17-K, 2022 WL
7719761, at *1 (N.D. Tex. Sept. 15, 2022) (quoting TEX. BUS . O RGS . CODE § 101.112(c);
citing Pajooh v. Royal W. Invs. LLC, Series E, 518 S.W.3d 557, 565 (Tex. App. –
Houston [1st Dist.] 2017, no pet.)), rec. accepted, 2022 WL 7035096 (N.D. Tex. Oct.
11, 2022).
And, so, “[o]n application by a judgment creditor of a member of a limited
liability company ..., a court having jurisdiction may charge the membership interest
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of the judgment debtor to satisfy the judgment.” TEX. BUS . O RGS . CODE § 101.112(a);
cf. Klinek v. LuxeYard, Inc., 672 S.W.3d 830, 839 (Tex. App. – Houston [14th Dist.]
2023, no pet.) (“A member’s ownership interest in a limited liability company is a non-
exempt asset.” (citations omitted)).
“This permits judgment creditors to satisfy their judgment to ‘receive any
distribution to which the judgment debtor would otherwise be entitled in respect of
the membership interest.’” Edgefield Holdings, 2022 WL 7719761, at *1 (quoting TEX .
BUS . O RGS . CODE § 101.112(b)).
But “[t]he creditor ‘does not have the right to obtain possession of, or otherwise
exercise legal or equitable remedies with respect to, the property of the limited
liability company.’” Thomas, 27 F.4th at 367 (quoting TEX. BUS . O RGS. CODE §
101.112(f)); see also Gonzalez Obregon v. Romo, No. 4:24-cv-3371, 2025 WL 1756572,
at *5 (S.D. Tex. June 24, 2025) (“[T]he judgment creditor who obtains a charging order
may not compel a limited liability company to make a distribution, take possession of
the judgment debtor's membership interest, or exercise any other legal or equitable
remedies with respect to company property.” (quoting Klinek, 672 S.W.3d at 835
(citing TEX. BUS . O RGS . CODE § 101.112(c), (d), (f); Spates v. Office of Att’y Gen., 485
S.W.3d 546, 556 (Tex. App. – Houston [14th Dist.] 2016, no pet.)))).
“[T]o grant a charging order, an application must be brought (i) by a judgment
creditor, (ii) of a member of a limited liability company, (iii) in a court with
jurisdiction.” Edgefield Holdings, 2022 WL 7719761, at *1.
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Those 	requirements 	are 	met 	here. 	And, 	by 	failing 	to 	respond 	to 	the
applications, Mr. Haddad “does not dispute his ownership or the non-exempt status
of these membership interests, so [BANA] is entitled to a charging order.” Gonzalez
Obregon, 2025 WL 1756572, at *5 (footnote omitted).
The Court therefore ORDERS the following:
 	The 	membership 	interest 	of 	Kevin 	T. 	Haddad 	in 	KC 	Haddad
Management, LLC is charged to satisfy this Court’s judgment. This
charging order constitutes a lien on the membership interest of Mr.
Haddad in KC Haddad Management, LLC.
 	BANA has the right to receive any distribution to which Mr. Haddad
would otherwise be entitled in respect of his membership interest in KC
Haddad Management, LLC. Any membership distributions, profits, cash,
assets, or other monies due or that shall become due to Mr. Haddad by
virtue of his membership in KC Haddad Management, LLC shall be paid
by KC Haddad Management, LLC, and/or any third party, to BANA
through their counsel of record.
 	KC Haddad Management, LLC must obtain leave of this Court before (i)
transferring any asset or distribution to any third party, (ii) transferring
any funds to any third party except for transactions in the ordinary course
of business, or (iii) transferring Mr. Haddad’s interest (or any part
thereof) in KC Haddad Management, LLC to any third party.
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 	This Charging Order may be filed with the corporate records of KC
Haddad Management, LLC, in the office of the Texas Secretary of State,
and 	with 	any 	other 	court, 	administrative 	body, 	state 	agency, 	or
subdivision of the State of Texas.
And the Court further ORDERS:
 	The membership interest of Kevin T. Haddad in KC Haddad Real Estate,
LLC is charged to satisfy this Court’s judgment. This charging order
constitutes a lien on the membership interest of Mr. Haddad in KC
Haddad Real Estate, LLC.
 	BANA has the right to receive any distribution to which Mr. Haddad
would otherwise be entitled in respect of his membership interest in KC
Haddad Real Estate, LLC. Any membership distributions, profits, cash,
assets, or other monies due or that shall become due to Mr. Haddad by
virtue of his membership in KC Haddad Real Estate, LLC shall be paid
by KC Haddad Real Estate, LLC, and/or any third party, to BANA
through their counsel of record.
 	KC Haddad Real Estate, LLC must obtain leave of this Court before (i)
transferring any asset or distribution to any third party, (ii) transferring
any funds to any third party except for transactions in the ordinary course
of business, or (iii) transferring Mr. Haddad’s interest (or any part
thereof) in KC Haddad Real Estate, LLC to any third party.
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 	This Charging Order may be filed with the corporate records of KC
Haddad Real Estate, LLC, in the office of the Texas Secretary of State,
and 	with 	any 	other 	court, 	administrative 	body, 	state 	agency, 	or
subdivision of the State of Texas.
SO ORDERED.
DATE: March 25, 2026
_________________________________________
DAVID L. HORAN
UNITED STATES MAGISTRATE JUDGE
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