Almost exactly one year ago, we wrote about the go-to line of New York case law for business divorce litigants hoping to secure injunctions: a substantial and ever growing body of authority holding that involuntary loss or deprivation of equity ownership, management, or control rights in a closely-held business typically qualifies as “irreparable” harm, for which money damages are insufficient and injunctive relief appropriate (see e.g. Yemini v Goldberg, 60 AD3d 935 [2d Dept 2009] [“because control and management . . . were at stake, money damages were not sufficient. Thus, the defendants established the element of irreparable injury”] [citation omitted]).
A far less frequently invoked line of case law originating not from business divorce law, but the law of lottery, holds that an injunction movant may demonstrate “irreparable” harm where a “substantial amount of money may be dissipated or otherwise unavailable for recovery” without an injunction (Ma v Lien, 198 AD2d 186 [1st Dept 1993]).
Albany County Commercial Division Justice Richard Platkin relied upon both lines of case law in a recent decision resolving a closely-held business owner’s injunction application over her co-owner’s sale of a solar power business and dissemination of the sale proceeds.
Burt v Jerez (2024 NY Slip Op 51613(U) [Sup Ct, Albany County Nov. 20, 2024]), is a fascinating example of how commercial judges resolve sharply conflicting factual accounts in injunction motion papers.
Burt features not one, but two rarities: a full-blown evidentiary hearing complete with post-trial briefing; and a thorough, exceptionally thoughtful, written Decision and Order chock full of legal analysis and credibility determinations.
In a world where injunction motions more and more often seem to get resolved in a transcript with little or no value to anyone but those involved in the case itself, Burt is a delightful breath of fresh air.
Continue Reading Fact Issues and Credibility Determinations on Injunction Motions