HAISLIP v. AL-SHAWABKEH, Et Ai.

── HAISLIP v. AL-SHAWABKEH, Et Ai. ── Court: Court of Appeals of Arizona Date: May 14, 2026 Category: General NOTICE: NOT FOR OFFICIAL PUBLICATION. UNDER ARIZONA RULE OF THE SUPREME COURT 111(c), THIS DECISION IS NOT PRECEDENTIAL AND MAY BE CITED ONLY AS AUTHORIZED BY RULE. IN THE ARIZONA COURT OF APPEALS DIVISION ONE MATTHEW HAISLIP, et al., Plaintiffs/Appellants, v. NIZAR J. AL-SHAWABKEH, et al., Defendants/Appellees. No. 1 CA-CV 25-0631 FILED 05-14-2026 Appeal from the Superior Court in Maricopa County No. CV2023-052057 The Honorable Melissa Iyer Julian, Judge AFFIRMED COUNSEL Lento Law Group, Inc., Phoenix By John Bain Co-Counsel for Plaintiffs/Appellants WilkiePuchi, LLP, Scottsdale By Blake Wilkie Co-Counsel for Plaintiffs/Appellants Parker Schwartz, PLLC, Phoenix By Ira M. Schwartz, Byron H. Forrester Counsel for Defendants/Appellees  HAISLIP, et al. v. AL-SHAWABKEH, et al. Decision of the Court MEMORANDUM DECISION Judge Kent E. Cattani delivered the decision of the Court, in which Presiding Judge Samuel A. Thumma and Judge Andrew J. Becke joined. C A T T A N I, Judge: ¶1 Matthew Haislip appeals from the superior court’s order awarding damages, attorney’s fees, and costs to Nizar Al-Shawabkeh. We affirm. FACTS AND PROCEDURAL BACKGROUND ¶2 Haislip and Al-Shawabkeh orally agreed to purchase two businesses together. In August 2022, they purchased Sugar Daddy Smoke Shop, LLC (“Sugar Daddy”). In September 2022, they purchased Oh Baby Smoke Shop, LLC (“Oh Baby”). ¶3 Haislip and Al-Shawabkeh agreed that they would jointly own the businesses and share profits equally. Al-Shawabkeh would be responsible for operating the businesses, with Haislip responsible for capital contributions and working in the stores as needed. ¶4 The businesses operated informally. Al-Shawabkeh and Haislip opened a joint bank account, but at times the joint account did not have enough funds to cover business expenses, so Al-Shawabkeh would cover the costs then later reimburse himself from the joint account. The businesses did not have a formal payroll system and did not document hours worked by employees, but Al-Shawabkeh would pay employees from the joint account. Al-Shawabkeh would also transfer funds from the joint account to himself when there were profits. Al-Shawabkeh and Haislip, together with a store employee, had a group text in which they would send pictures of receipts, invoices, and inventory to document expenses. ¶5 In January 2023, Al-Shawabkeh and Haislip decided to end their business relationship and agreed to divide the businesses. Their separation agreement resulted in Al-Shawabkeh wholly owning Oh Baby and Haislip wholly owning Sugar Daddy. To equalize distributions they had received from the businesses, Haislip wrote two separate checks to Al- 2  HAISLIP, et al. v. AL-SHAWABKEH, et al. Decision of the Court Shawabkeh for $2,001 and $2,000, but Haislip asked Al-Shawabkeh to wait a month before cashing the check for $2,000. ¶6 The first check cleared, but the second bounced when Al- Shawabkeh tried to deposit it. Haislip stated that he cancelled the second check because a forensic accounting showed more than $70,000 in unauthorized payments to Al-Shawabkeh. ¶7 Haislip sued Al-Shawabkeh for breach of contract, breach of the implied covenant of good faith and fair dealing, breach of a statutory obligation of good faith and fair dealing, breach of fiduciary duty, fraudulent inducement, fraudulent misrepresentation, fraudulent concealment, conversion, and unj