7:25-cv-01110
S.D.N.Y.May 21, 2025Background
- Old Slip Benefits & Insurance Services LLC (Old Slip) entered an exclusive franchise agreement with Allstate Insurance Company to operate an Allstate insurance agency in early 2024.
- Old Slip’s owner, Lukezic, also owned a separate financial services firm and communicated this to Allstate during negotiations.
- Allstate later demanded that Old Slip cease offering non-Allstate financial services and transfer such clients to Allstate. When Old Slip refused, Allstate initiated termination of the franchise for alleged unauthorized brokering.
- Fearing irreparable harm, Old Slip sought and obtained a temporary restraining order (TRO) from state court to prevent the termination while a motion for preliminary injunction was pending.
- The case was removed to federal court, and Allstate moved to declare the TRO expired or dissolved. Allstate also sought to file an agency manual under seal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether state-issued TRO remains in effect after removal | TRO should be treated as ongoing or as a PI | TRO expires under Fed. R. Civ. P. 65(b) | TRO expired 14 days after removal, no extension sought |
| Whether state court’s order was effectively a PI | Order functioned as a de facto PI | State court explicitly declined to grant PI | State court did not grant a PI—TRO only |
| Court’s ability to retroactively extend the TRO | Court can extend TRO for good cause | Extension must be requested before expiry | No power to retroactively extend expired TRO |
| Redacting/Sealing the Allstate Agency Manual | No sufficient grounds for sealing; manual public | Manual is confidential & commercial sensitive | Motion to seal denied; manual already substantially public |
Key Cases Cited
- Granny Goose Foods, Inc. v. Bhd. of Teamsters and Auto Truck Drivers Local No. 70, 415 U.S. 423 (state court TRO after removal subject to Fed. R. Civ. P. 65 time limits)
- Uniformed Fire Officers Ass’n v. de Blasio, 973 F.3d 41 (Second Circuit reiterates that TROs post-removal expire per Rule 65(b))
- In re Crim. Contempt Proc. Against Crawford, Warren, 329 F.3d 131 (14-day maximum extension for TROs absent consent)