PETER HILES, INDIVIDUALLY AND DERIVATIVELY ON BEHALF OF THE STOCKHOLDERS OF AUTO BAHN SALES AND LEASING, INC., AND ON BEHALF OF AUTO BAHN SALES AND LEASING, INC., APPELLANT,
v.
AUTO BAHN FEDERATION, INC., A FLORIDA CORPORATION, AND THE ESTATE OF JOSEPH A. UZZO, DECEASED, APPELLEES
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Peter Hiles and Auto Bahn Sales and Leasing, Inc. appealed from an interlocutory order granting a temporary mandatory injunction that prevented disposal of corporate assets. The Fourth District Court of Appeal reversed, holding that the appellees failed to demonstrate the prerequisites for injunctive relief, particularly irreparable harm and inadequacy of legal remedies.
The court reversed the injunction, holding that appellees failed to meet the requirements for injunctive relief. Specifically, the court found that appellees did not demonstrate irreparable harm because any loss of money from a corporate account can be compensated by money damages, and an adequate remedy at law existed since the disputed amount could be recovered through a judgment for money damages.
[1] A party seeking an injunction must demonstrate irreparable harm, a clear legal right, an inadequate remedy at law, and consideration of the public interest.
[2] Injunctive relief may not be used to enforce money damages or to prevent a party from disposing of assets until an action at law for an alleged debt can be concluded.
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Join FLexlaw to unlock all legal intelligence“A party seeking an injunction under general Florida case law must demonstrate: 1) irreparable harm; 2) a clear legal right; 3) an inadequate remedy at law; 4) consideration of the public interest.”
Establishes the four-element test required for injunctive relief under Florida law
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Join FLexlaw to unlock all legal intelligenceAppellees sought a temporary mandatory injunction to prevent the dissipation of approximately $90,000 from a corporate bank account. Appellees alleged…
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PER CURIAM.
Appellants Peter Hiles and Auto Bahn Sales and Leasing, Inc., filed this interlocutory appeal from non-final orders granting a temporary mandatory injunction and denying a motion to dissolve the injunction. We reverse.
A party seeking an injunction under general Florida case law must demonstrate: 1) irreparable harm; 2) a clear legal right; 3) an inadequate remedy at law; 4) consideration of the public interest. Finkelstein v. Southeast Bank, N.A., 490 So. 2d 976, 980 (Fla. 4th DCA 1986). Since a temporary injunction is an extraordinary remedy, it should be granted sparingly and only after the moving party has alleged and proved facts entitling it to relief. Contemporary Interiors, Inc. v. Four Marks, Inc., 384 So. 2d 734, 735 (Fla. 4th DCA 1980). Appellees failed to plead or prove all the requirements for issuance of an injunction.
First, appellees failed to specifically allege irreparable harm — appellees merely suggest the possible dissipation of assets from a corporate bank account. Furthermore, appellees failed to prove that such dissipation is irreparable harm. In-junctive relief may not be used to enforce money damages, or to prevent any party from disposing of assets until an action at law for an alleged debt can be concluded. Action Electric & Repair, Inc. v. Batelli, 416 So. 2d 888 (Fla. 4th DCA 1982). Consequently, this alleged loss of money from a corporate bank account does not constitute irreparable harm because the loss can be compensated for by money damages, Action Electric, 416 So. 2d at 889; Goldberger v. Regency Highland Condominium Association, 383 So. 2d 1173 (Fla. 4th DCA 1980); and an action at law for the alleged debt in the instant case has not yet been concluded. Action Electric, 416 So. 2d at 889. Without a showing of irreparable injury, the granting of an injunction is inher ently an abuse of discretion meriting reversal. Florida East Coast Railway v. City of Miami, 299 So. 2d 152 (Fla. 3d DCA 1974), cert. denied, 304 So. 2d 126 (Fla.1974).
Second, appellees failed to plead that no adequate remedy at law existed. Orders granting injunctions to prevent an alleged dissipation of corporate assets have been reversed where there existed an adequate remedy at law. Mary Dee’s, Inc. v. Tartamella, 492 So. 2d 815 (Fla. 4th DCA 1986). In this instance, an adequate remedy at law exists since the injury can be redressed in a court of law and the disputed $90,000 can be fully compensated by a judgment for money damages. The possibility that a money judgment, once obtained, will not be collectible is irrelevant under the test of inadequacy of remedy at law. Id. at 816. Thus, injunctive relief was error because there was no showing of irreparable harm or lack of an adequate remedy at law.
REVERSED.
HERSEY, C.J., and DELL and GUNTHER, JJ., concur.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By (38 total)
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Liberty Fin. Mortg. Corp. v. Clampitt, 667 So. 2d 880 (Fla. 2d DCA 1996)…paringly and only after the moving party has alleged and proved facts entitling it to relief. State Agency for Health Care Administration v. Continental Car Services, Inc., 650 So. 2d 173, 175 (Fla. 2d DCA 1995); Hiles v. Auto Bahn Federation, Inc., 498 So. 2d 997 (Fla. 4th DCA 1986). The party seeking the injunction must prove: (1) it will suffer irreparable harm unless the status quo is maintained; (2) there is no adequate remedy at law; (3) the party has a clear legal right to the relief granted; and (4) a…
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Weinstein v. Yoram Aisenberg, 758 So. 2d 705 (Fla. 4th DCA 2000)…ction to prevent them from withdrawing funds from the subject banks. The appellee has an adequate remedy at law, i.e., money damages. A claim for money damages does not provide a sufficient basis for injunctive relief. Hiles v. Auto Bahn Fed’n Inc., 498 So. 2d 997 (Fla. 4th DCA 1986). Even where the party seeking injunctive relief alleges that the opposing party may dissipate bank assets, a judgment for money damages is adequate and injunctive relief is improper, notwithstanding the possibility that a money j…1 / 2
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Gomez v. Fradin, 41 So. 3d 1068 (Fla. 4th DCA 2010)…to enjoin the association/directors from holding “secret meetings” without notice and involvement of unit owners. A claim for a permanent injunction is an extraordinary remedy that must only be granted sparingly. See Hiles v. Auto Bahn Fed’n, Inc., 498 So. 2d 997, 998 (Fla. 4th DCA 1986). “A party seeking an injunction under general Florida case law must demonstrate: 1) irreparable harm; 2) a clear legal right; 3) an inadequate remedy at law; 4) consideration of the public interest.” Id. In the instant case…1 / 2
Previewing 3 of 38 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Contemporary Interiors, Inc. v. Four Marks, Inc., 384 So. 2d 734 (Fla. 4th DCA 1980)
- Finkelstein v. Se. Bank, N.A., 490 So. 2d 976 (Fla. 4th DCA 1986)
- Hausbach v. Se. Bank, N.A., 490 So. 2d 976 (Fla. 4th DCA 1986)
- Mary Dee's, Inc. v. Tartamella, 492 So. 2d 815 (Fla. 4th DCA 1986)
- Action Elec. & Repair, Inc. v. Batelli, 416 So. 2d 888 (Fla. 4th DCA 1982)
- Goldberger v. Regency Highland Condo. Ass'n, Inc., 383 So. 2d 1173 (Fla. 4th DCA 1980)
- Fla. E. Coast Ry. Co. v. City OF Miami, 299 So. 2d 152 (Fla. 3d DCA 1974)
- Floridian Hotel & the Travelers Ins. Co. v. Blount, 304 So. 2d 126 (Fla. 1974)
- Fair v. Ball, 304 So. 2d 126 (Fla. 1974)