The plaintiffs, franchisors of fast food restaurants, moved under Rule 45 of the Rules of Civil Procedure for orders freezing the defendants’ bank accounts and compelling disclosure of financial records after alleging diversion of franchise fees.
The court considered whether the allegedly diverted funds constituted a specific fund capable of preservation under Rule 45.02, and whether the balance of convenience supported interim relief.
Finding a serious issue to be tried and drawing an adverse inference from the defendant’s erasure of a laptop hard drive containing relevant records, the court concluded the plaintiffs had a strong claim to the disputed funds.
The defendants’ bank accounts were ordered frozen and full banking records disclosed.
Requests for a Mareva injunction against the defendant’s residence and non-competition relief were refused due to insufficient evidence.
