The plaintiffs, an elevator maintenance company and its parent corporation, brought an urgent ex parte motion for a Mareva injunction and other injunctions restraining a former president and CEO, his wife, and their competing corporation from using the plaintiffs' credit cards or funds, soliciting customers or employees, and from making unauthorized changes to corporate governance documents.
The court found extraordinary urgency and a strong prima facie case of breach of fiduciary duty, conversion of corporate funds, misappropriation of corporate opportunity, conspiracy, and breach of a unanimous shareholder agreement.
Interim injunctions were granted restraining the defendants from using corporate funds and soliciting customers and employees, and restraining the individual defendant from altering corporate documents or breaching his fiduciary duties.
The Mareva injunction was refused on the basis that there was insufficient evidence of a serious risk the defendant would remove or dissipate assets before judgment.
