The plaintiff, an acquirer bank, sought an interlocutory mandatory injunction to enforce its contractual right to audit the defendant, a payment operator, after the defendant terminated their agreement and invoked a de-conversion process.
The defendant brought a cross-motion for a mandatory injunction requiring the plaintiff to release funds it had moved from settlement accounts to reserve accounts, alleging breach of trust.
The court granted the plaintiff's motion, finding a strong prima facie case that the audit right survived during de-conversion and that the loss of the right constituted irreparable harm.
The defendant's cross-motion was dismissed as it failed to establish a strong prima facie case or irreparable harm, and there was no basis to find the settlement accounts were trust funds.
