In a recent case, Florida’s Second District Court of Appeal offered a reminder that the fundamental—and limited—purpose of a preliminary injunction is to maintain the status quo.
In the context of a dispute between commercial property owners and their property management company, the appellate court ruled that a preliminary injunction was not the proper procedural vehicle for obtaining expedited relief regarding the property manager’s alleged failure to prepare and provide a final accounting and other documentation following termination of the management agreement. See Gulf Coast Commercial, LLC v. KOS Corp., --- So. 3d ---, Case No. 2D22-464 (Nov. 30, 2022).
In Gulf Coast, the property manager terminated its management agreement due to an alleged failure by the owners to pay management fees. Id. at 1. The owners asserted claims for breach of contract and breach of fiduciary duty, and sought both injunctive relief and damages. Id. The owners filed a motion for preliminary injunction seeking to compel the manager to provide a final accounting and related documentation. Id. at 2. The trial court granted the motion, but the appellate court reversed.
As its rationale for the reversal, the appellate court explained that “[t]he general function of a temporary injunction is to preserve the status quo for disputing parties until the court is able to resolve the underlying dispute on its merits” and that “[t]he status quo is the last, actual, peaceable, noncontested condition which preceded the pending controversy.” Id. (internal citations and quotations omitted).
And, because the purpose of a preliminary injunction is limited to preserving the then-existing status quo, rather than awarding relief that would compel the defendant to affirmatively change the status quo, “[a] preliminary injunction is improperly entered when it bypasses the procedures for a permanent injunction and preliminarily grants the same relief that would have been given in a final order of permanent injunction.” Id. (internal citations and quotations omitted). The appellate court further explained:
In Counts 2, 4, and 6 of their complaint, the Property Owners requested that the trial court enter an injunction requiring Hybridge [the property manager] to prepare and deliver a final accounting and provide certain documentation to the Property Owners. In their motion for temporary injunction, the Property Owners sought and were awarded the same relief. Therefore, the trial court abused its discretion by going beyond preserving the status quo and granting the ultimate relief requested by the Property Owners without holding the final evidentiary hearing.
The Property Owners argue that the trial court’s order preserves the status quo—that is, the last peaceable, noncontested condition before the parties’ current dispute—by requiring Hybridge to provide the final accounting and business records which are critical for the Property Owners to run their businesses. Although the trial court’s order arguably could have preserved some incidental aspect of the status quo by allowing the Property Owners to continue to conduct their affairs, it does not preserve the last peaceable, noncontested status quo because the Property Owners’ assertion that Hybridge has an obligation to perform the accounting is precisely what Hybridge contests in the lawsuit. In other words, the current dispute in the litigation is whether Hybridge has a contractual obligation to do the thing ordered in the temporary injunction.
* * *
Hybridge did not recently begin doing something the Property Owners insist it should be enjoined from doing to limit further damage—i.e., a request to restore the status quo to a point in time before the allegedly deleterious behavior of the respondent began. Rather, Hybridge has been refraining from doing something that Property Owners insist Hybridge should have been doing. The Property Owners’ “former condition” would not be restored by the trial court ordering an accounting that Hybridge contends it is under no obligation to perform. The ultimate merits in this case are whether Hybridge is still required to provide an accounting despite the Property Owners’ allegedly anticipatory breach by failing to pay management fees. By granting the injunction, the trial court did “act[ ] with[ ] regard to the ultimate merits of the controversy …”. Therefore, the trial court abused its discretion by granting the temporary injunction.
Id. (italics emphasis original; internal citations omitted).
The motto of this story: Although it is very tempting for a plaintiff to seek expedited preliminary injunctive relief in an effort to quickly right an alleged wrong, it is critical to evaluate whether the injunctive relief sought will truly be limited to preserving the status quo that existed just before the subject dispute arose. If the injunctive relief sought will require the Court to compel the defendant to affirmatively do something it has refused to do (e.g., prepare a final accounting), that is a sign that Florida courts may consider the requested relief beyond the proper limited scope of a preliminary injunction.
- Partner
Matthew J. Meyer is a partner in the Tampa office of Shutts & Bowen LLP, where he is a member of the Business Litigation Practice Group. Matt is an accomplished litigator, experienced in complex commercial, business, employment ...
Search Blog
Follow Us
Recent Posts
- Federal Court Strikes Down the DOL’s Increased Salary Thresholds for Executive, Administrative, Professional, And Highly Compensated Employee Overtime Exemptions
- Breaking News: FinCEN Postpones Beneficial Ownership Reporting Deadlines for Companies Impacted by Recent Major Storms
- What You Need to Know About the U.S. Department of Transportation’s Build America TIFIA Loan
- Breaking News: Federal Judge Blocks Nationwide Implementation of the FTC’s New Rule Banning Noncompete Agreements
- September 4th is Almost Here: How Employers Can Prepare for the Upcoming Effective Date of the FTC’s Non-Compete Rule
- Florida’s New Statutory Home Warranty: What Home Builders Need to Know
- Orange County Proposes Temporary Suspension Ordinance on New Development Applications
- Raising the Roof: The U.S. Department of Labor Announces Rule Raising Salary Thresholds for Overtime Exemptions
- New Guidelines Anticipated Following HHS’s Health Cybersecurity Concept Paper
- SECURE 2.0 and Protecting Your Designated Beneficiaries
Popular Categories
- Employment and Labor
- Litigation (Labor & Employment)
- Construction
- Department of Labor
- Business of Real Estate
- Landlord-Tenant
- Construction Litigation
- Salary
- Real Estate Law
- Competition
- Cybersecurity
- Intellectual Property
- Appeals
- Construction
- Contracts
- Litigation
- Public Private Partnership
- Trusts and Estates
- Data Security
- Business
- Development/Land Use
- Supreme Court
- Technology
- Privacy
- IP Litigation
- Litigation (Appellate)
- Patents
- Public Finance
- Business
- Regulatory Compliance
- Florida Government Contracts
- Foreclosures
- Trademark
- Contracting
- Health Care
- Financial Institutions
- Compliance
- Estate planning
- International Dispute Resolution
- Property Tax
- Florida Public Contracts
- Government Contracting
- Government Contracts
- Government
- Conveyances
- Lease
- Appellate Blog
- Patent Office
- Insurance
- Wealth planning
- Federal Government Contracting
- Florida Bid Protests
- Public Contracts
- Infringement
- Cyber fraud
- Proposal Writing
- Public Bidding
- GAO
- Bid Protest
- International Arbitration and Litigation
- Arbitration
- Americans with Disabilities Act
- International
- Restrictive Covenants
- Grant Writing
- Copyright
- Promissory Notes
- Title
- Small Business
- Florida Procurement
- Public procurement
- Consumer Privacy
- PTAB
- General Liability
- Technology
- International Arbitration
- Liens and encumbrances
- Liens
- Creditor's Rights
- Bidding
- Attorneys' Fees
- Inter Partes Review
- Consumer Protection
- Power Generation
- Regulation
- Venue
- Contracting
- Government Vendor
- State Government Contracts
- Ad Valorem Assessments
- Florida Administrative Law
- Attorneys' Fees
- Florida Rules of Appellate Procedure
- Bankruptcy
- Florida Public Procurement
- Russia-Related Arbitration
- Mortgages
- FINRA
- Record on Appeal
- Eviction
- Rehearing
- Loan guaranties
- Patents - Assignor Estoppel
- Statute of limitations
- Statute of repose
- Dispute Resolution
- Liens
- Maritime
- Damages
- Briefing
- Patents - Obviousness
- Request for Proposal
- Commercial Brokerage
- Trade Secrets
- Bid Writing
- Florida Bidding Strategies
- Renewal
- Attorneys' Fees
- Florida County Lands
- Florida Economic Incentive Packages
- Jury Instructions
- Stay
- Certiorari
- Design Professionals
- Forum Selection
- email hacking
- Offers of Judgment
- Prevailing Party
- Settlements
- Assignment of Contract
- Assignment of Proceeds
- Designer Liability
- Lis Pendens
- Appellate Jurisdiction - Deadlines
- Banking
- Evidence
- Evidence
- Expert
- Expert Science
- Federal Rules of Appellate Procedure
- Finality
- Fintech
- Marketing/Advertising
- Preservation
- Unlicensed Contracting
- Federal Supply Schedule
- Florida Public Records Law
- Mootness
- Socio-Economic Programs
- Sunshine Law
- Veteran Owned Business
- Homestead
- Partnerships and LLCs
- Standing
Editors
- Of Counsel
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Associate
- Partner
- Partner
- Associate
- Partner
- Partner
- Partner
- Partner
- Senior Associate
- Partner
- Associate
- Partner
- Senior Associate
- Partner
- Associate
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Partner
- Of Counsel
- Senior Associate
- Partner
- Associate
- Partner
- Partner
- Associate
- Partner
- Partner
- Partner
Archives
- November 2024
- October 2024
- September 2024
- August 2024
- June 2024
- May 2024
- February 2024
- November 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- October 2019
- August 2019
- July 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016