Corrales Law PC v. Equal Access Justice Fund LP

Summary

The United States District Court for the Southern District of California denied Plaintiffs’ request for an ex parte temporary restraining order seeking to halt a JAMS arbitration concerning alleged obligations under a litigation-finance loan agreement. The Court held that Plaintiffs had not shown the exceptional circumstances required for an unnoticed TRO and had failed to demonstrate irreparable harm. The Court ordered Plaintiffs to serve the Defendants and set a briefing schedule and hearing for the motion for preliminary injunction.

Holdings

1. Plaintiffs did not establish an adequate justification for proceeding ex parte because they did not provide proper proof of service or show that notice was impossible or would frustrate the prosecution of the action.
2. Plaintiffs failed to demonstrate likely irreparable harm, and that failure was fatal to their request for temporary injunctive relief.
3. The court set a briefing schedule and hearing for plaintiffs' motion for preliminary injunction and ordered plaintiffs to serve the defendants and file proof of service.

Questions Presented

1. Whether plaintiffs satisfied the requirements for an ex parte temporary restraining order under Federal Rule of Civil Procedure 65(b)(1).
2. Whether plaintiffs demonstrated likely irreparable harm from having to defend the JAMS arbitration and from the possibility that the arbitrator could reach a different result than the district court.
3. Whether the court should set a briefing schedule for plaintiffs' separately requested preliminary injunction.

Disposition

other