85 So. 3d 778
La. Ct. App.2012Background
- BKA is a long-standing Mardi Gras float designer; Blaine Kern, Sr. appeals a preliminary injunction restricting his interference with BKA management.
- Barry Kern sought to gain managerial control based on the four-point and seven-point agreements and related corporate governance disputes.
- The trial court ordered a shareholder meeting and a stock vote to elect Barry and Frank Mumphrey as directors, then to appoint Barry president and Brian Kern secretary/treasurer.
- Barry sought a preliminary injunction alleging breach of the four-point agreement and irreparable harm to BKA and Mardi Gras reputation; the court set a bond and ordered an evidentiary step toward a permanent injunction.
- Blaine challenged the injunction as a wrongful mandatory action and argued the debtor/contractual agreements had expired, and no evidentiary hearing was held before issuance.
- The appellate court reversed, holding the injunction was mandatory and issued without an evidentiary hearing, remanding for a full evidentiary hearing on Barry’s request for a mandatory injunction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the injunction was properly issued as a mandatory injunction requiring affirmative action | Barry argued mandatory relief to enforce the four-point agreement and to install new management | Blaine argued no evidentiary hearing and that the order improperly compelled action | Yes; mandatory injunction improper without an evidentiary hearing |
Key Cases Cited
- Denta-Max v. Maxicare Louisiana, Inc., 671 So.2d 995 (La.App. 4 Cir. 1996) (mandatory injunction requires evidentiary hearing; status quo concerns)
- I.F. v. Administrators of the Tulane Education Fund, 72 So.3d 462 (La.App. 4 Cir. 2011) (mandatory injunction requires evidentiary hearing; not merely prima facie showing)
- Concerned Citizens for Proper Planning, LLC v. Parish of Tangipahoa, 906 So.2d 660 (La.App. 1 Cir. 2005) (mandatory injunction standards; evidentiary requirements)
- Burnham Broadcasting Co. v. Williams, 629 So.2d 1335 (La.App. 4 Cir.1993) (standard for preliminary injunction and status quo considerations)
- Historic Restoration, Inc. v. RSUI Indemnity Co., 955 So.2d 200 (La.App. 4 Cir. 2007) (abuse of discretion standard for injunction review; procedural defect analysis)