Cheque Financial, LLC v. Evolve Bank & Trust, Inc.
1:25-cv-02350
N.D. Ga.May 7, 2025Background
- Cheque Financial, LLC provides financial services (money transfers, check cashing) to underserved communities via accounts at Evolve Bank & Trust.
- In December 2024, Evolve Bank claimed it erroneously credited Cheque Financial with $827,285 and began charging a $5,000 monthly fee.
- Cheque Financial began reconciling accounts and sought to move funds to a new bank.
- Evolve Bank reversed over $487,000 in ACH deposits and, according to Cheque Financial, later debited $1.2 million, resulting in a negative account balance and strained vendor relationships.
- Cheque Financial sued Evolve in state court for conversion, tortious interference, defamation per se, and negligent misrepresentation, seeking damages and injunctive relief; case was removed to federal court, and Cheque Financial filed for an emergency TRO.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Likelihood of Success on the Merits | Evolve wrongfully reversed and debited funds, harming business relationships | (Not specifically discussed) | Cheque failed to clearly establish likelihood of success |
| Irreparable Injury | Harm to business relationships is irreparable | (Not specifically discussed) | Injuries are compensable by money; no irreparable harm |
| Necessity of Emergency Hearing | Requested emergency hearing without specific reasons | (Not specifically discussed) | No specific necessity shown; hearing request denied |
| Appropriateness of Extraordinary Relief (TRO) | TRO needed to restore funds, prevent further harm | (Not specifically discussed) | TRO is an extraordinary remedy; prerequisites not met |
Key Cases Cited
- Four Seasons Hotels & Resorts v. Consorcio Barr, 320 F.3d 1205 (11th Cir. 2003) (setting standard for granting preliminary injunctions and TROs)
- Morgan Stanley DW, Inc. v. Frisby, 163 F. Supp. 2d 1371 (N.D. Ga. 2001) (TRO is an extraordinary remedy, strict standards applied)
- Siegel v. LePore, 234 F.3d 1163 (11th Cir. 2000) (irreparable injury requires harm that cannot be remedied by money)
- Ne. Fla. Chapter of Ass’n of Gen. Contractors of Am. v. City of Jacksonville, 896 F.2d 1283 (11th Cir. 1990) (monetary relief weighs against irreparable harm)