On August 7, 2018, Justice Sherwood of the New York County Commercial Division issued a decision in Seeking Valhalla Trust v. Deane, 2018 NY Slip Op. 31920(U), denying a motion for an injunction because the availability of money damages meant that they would not suffer irreparable harm, explaining:
[T]he motion fails for lack of irreparable harm. Plaintiffs concede that the harm here reducible to monetary damages, but argue that this case falls under the exception articulated in Amity Loans, Inc. and AQ Asset Mgt. LLC. As defendants correctly note, however, that exception applies only where there is a specific, identifiable fund and an obligation to return or otherwise treat in a particular manner the specific fund in question. Plaintiffs’ argument fails to distinguish between funds that can be identified – in this case the proceeds from the sale – with identifiable funds that carry with them some requirement to be treated in a certain manner. The cases plaintiffs rely on involve only the latter and plaintiffs have failed to provide any authority establishing that the former gives rise to irreparable harm.
(Internal quotations and 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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