247 So. 3d 596
Fla. Dist. Ct. App.2018Background
- Strategica sued Sammie Investments, LLC and its manager Mary Moulton for breach of contract and related claims, alleging Strategica provided services and advanced funds in exchange for a 20% profit interest in Sammie.
- The dispute centered on proceeds from the sale of real property owned through 9 Mile-NF Joint Venture LLC (the "9-Mile" property); Strategica claimed approximately $200,000 was due from that sale.
- Strategica moved for emergency injunctive relief to restrain Sammie from distributing sale proceeds; Sammie disputed the alleged agreement and produced affidavits saying no written agreement was executed.
- At an evidentiary hearing the trial court considered engagement letters, a supplemental agreement (not signed by Sammie), emails, and testimony that Sammie had limited other operations and that Strategica was owed over $200,000.
- The trial court granted a temporary injunction ordering Sammie to deliver up to $200,000 of the sale proceeds to Sammie’s counsel to be held in trust and required a $500 bond from Strategica.
- The Third District Court of Appeal reversed, holding Strategica failed to show irreparable harm or the unavailability of an adequate remedy at law because its claim was for money damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a temporary injunction freezing $200,000 of sale proceeds was proper | Strategica: harm would be irreparable because Sammie has limited assets and might dissipate proceeds; needs injunction to preserve funds | Sammie: dispute over contract terms and written agreement; money damages suffice and injunction improper | Reversed — injunction improper; no irreparable harm and adequate remedy at law exists |
| Whether plaintiff showed substantial likelihood of success on the merits | Strategica: documentary evidence and testimony establish agreement entitling it to funds | Sammie: factual disputes about contract formation and scope of any profit interest | Court found trial court erred to the extent it relied on money-collection concerns to justify injunction; merits do not justify restraining assets when relief is monetary |
| Whether injunction would cause greater harm or disserve public interest | Strategica: preservation of funds outweighs Sammie’s alleged harm | Sammie: injunction unduly restrains use of proceeds and is extraordinary relief | Court held balancing did not overcome the requirement that irreparable injury be non-monetary |
| Whether injunctive relief can be used to enforce or secure a purely monetary claim | Strategica: needed to prevent dissipation making judgment uncollectible | Sammie: legal rule forbids using injunctions to preserve assets merely to secure money judgments | Held: injunction cannot be used to preserve assets for money damages; judgment collection concerns do not make harm irreparable |
Key Cases Cited
- Bookall v. Sunbelt Rentals, Inc., 995 So. 2d 1116 (Fla. 4th DCA 2008) (standard of review for injunctions)
- Meritplan Ins. Co. v. Perez, 963 So. 2d 771 (Fla. 3d DCA 2007) (injunction is extraordinary remedy requiring clear legal right)
- Chevaldina v. R.K./FL Mgmt., 133 So. 3d 1086 (Fla. 3d DCA 2014) (elements required for temporary injunction)
- SunTrust Banks, Inc. v. Cauthon & McGuigan, PLC., 78 So. 3d 709 (Fla. 1st DCA 2012) (burden to provide competent substantial evidence for each element)
- Lutsky v. Schoenwetter, 172 So. 3d 534 (Fla. 3d DCA 2015) (irreparable injury defined as harm not curable by money damages)
- Grove Isle Ass'n, Inc. v. Grove Isle Assocs., LLLP, 137 So. 3d 1081 (Fla. 3d DCA 2014) (same)
- Lopez-Ortiz v. Centrust Sav. Bank, 546 So. 2d 1126 (Fla. 3d DCA 1989) (adequate remedy test asks whether judgment can be obtained, not whether collectible)
- Konover Realty Assocs., Ltd. v. Mladen, 511 So. 2d 705 (Fla. 3d DCA 1987) (longstanding rule that injunctions cannot be used to freeze assets to secure money judgments)
- Leight v. Berkman, 483 So. 2d 476 (Fla. 3d DCA 1986) (injunctions not available merely to preserve assets for money claims)
- De Leon v. Aerochago, S.A., 593 So. 2d 558 (Fla. 3d DCA 1992) (injunctive relief may not be used to enforce money damages)