On July 20, 2020, Justice Masley of the New York County Commercial Division issued a decision in Somera Rd. – 1100 Main St., LLC v. TPG RE Fin. 1, Ltd., 2020 NY Slip Op. 32374(U), denying an injunction because the alleged harm could be remedied by money damages, explaining:
Next, plaintiff has not established irreparable harm. At stake here is money: how much must plaintiff pay defendant’s for defendants to issue advances pursuant to the Agreement? The burden of paying such a sum is the paradigmatic case of a monetary harm. Plaintiffs concern that its reputation among the Kansas City Community may be tarnished by defendants’ breach’ is not actionable in New York. Rather, harm to reputation is not irreparable because it can be measured in monetary damages. To the extent that plaintiff argues that damages would be difficult to calculate, a convoluted formula in the 245-page Agreement negotiated by the parties does not make them irreparable.
(Internal citations omitted).
It is common in commercial litigation that parties seek equitable relief such as injunctions, attachments or the appointment of a temporary receiver in order to preserve assets or maintain the status quo when money damages will not make them whole at the end of a litigation. Contact Schlam Stone & Dolan partner John Lundin at firstname.lastname@example.org if you or a client have questions regarding seeking–or opposing–such relief.
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