Insight Direct USA, Inc. v. Kelleher
1:17-cv-00252
| W.D. Tex. | Apr 11, 2017Background
- Insight Direct USA, Inc. sought a preliminary injunction against Christopher Kelleher in the Western District of Texas (1:17-CV-252-RP).
- The court issued a Temporary Restraining Order on April 5, 2017, enjoining Kelleher from violating certain terms pending a preliminary injunction hearing.
- On April 11, 2017, the court set an expedited discovery and hearing schedule, with a preliminary injunction hearing planned for April 28, 2017.
- Rule 65(b)(2) limits a TRO to 14 days unless extended for good cause or with consent, and does not define ‘good cause.’
- The grounds for the TRO, and the parties’ joint proposal for an expedited schedule, suggested continued need for relief beyond 14 days.
- The court extended the TRO, stating it would remain in effect until May 3, 2017 at 11:59 p.m. or until the final decision on the preliminary injunction, whichever comes first.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether good cause existed to extend the TRO beyond 14 days | Kelleher's grounds for the TRO continued to exist. | Not stated in the opinion. | Yes; good cause existed to extend the TRO. |
| Whether the TRO extension complied with the 28-day outer limit for TRO duration | Extension compatibility with the 28-day limit supported by expedited schedule. | Not stated in the opinion. | TRO extended to May 3, 2017 (or final decision), up to 28 days total. |
Key Cases Cited
- Flying Cross Check, L.L.C. v. Cent Hockey League, Inc., 153 F.Supp.2d 1253 (D. Kan. 2011) (grounds for TRO extension may establish good cause)
- U.S. D.I.D. Corp. v. Windstream Comms., Inc., 775 F.3d 128 (2d Cir. 2014) (TRO duration limits and extensions under Rule 65(b)(2))
- SEC v. Unifund Sal, 910 F.2d 1028 (2d Cir. 1990) (court may continue a TRO while reserving decision on PI)
- Hellenic Duty Free Shops S.A. v. H-D Mich., LLC, 694 F.3d 827 (7th Cir. 2012) (28-day TRO outer limit and extensions require consent for longer durations)
