Summary
The Appellate Division, Second Department affirmed an order denying the plaintiffs' motions for a preliminary injunction and the appointment of a receiver in a quiet title action involving allegedly forged deeds. The court held that the plaintiffs failed to meet the clear and convincing evidence standard required for appointing a temporary receiver under CPLR 6401(a) and similarly failed to demonstrate the irreparable injury necessary to support a preliminary injunction. The underlying dispute centers on ownership interests in Brooklyn real property.
Topics
Practice areas
Questions Presented
- Whether the trial court abused its discretion in denying the plaintiffs' request for a preliminary injunction enjoining the defendants from signing checks or documents on behalf of E & S Realty Management and in refusing to appoint a receiver.
- Whether the plaintiffs satisfied the clear‑and‑convincing‑evidence standard required for appointment of a temporary receiver.
Holdings
- The appellate court affirmed the trial court's denial because the plaintiffs failed to demonstrate clear and convincing evidence of irreparable loss and therefore did not satisfy the statutory standard for appointment of a temporary receiver or for a preliminary injunction on that ground.
Key quotations
“To establish the right to a preliminary injunction, a movant must demonstrate (1) the likelihood of success on the merits, (2) irreparable injury absent a preliminary injunction, and (3) that the equities balance in the movant's favor.” (at 1)
Factual background
In August 2017 the plaintiffs commenced a quiet‑title action alleging that a May 2001 deed and a November 2007 deed conveying the Brooklyn property to E & S Realty Management were forged. The plaintiffs sought to cancel those deeds, obtain a preliminary injunction to prevent the defendants from transferring the property or signing checks on behalf of E & S Realty Management, and to appoint a receiver for the property and the management company.
Procedural history
The plaintiffs filed a quiet‑title action in Kings County Supreme Court alleging forged deeds. They moved for a preliminary injunction to stop defendants from signing checks or documents on behalf of E & S Realty Management and sought appointment of a receiver. The trial court granted a limited injunction restraining transfer of the property but denied the injunction against signing checks and the receiver appointment. The plaintiffs appealed.