Potential Problems With Retrieval of Proceeds Not Irreparable Harm

On June 5, 2023, Justice Margaret A. Chan of the New York County Commercial Division issued a decision in Edgepwr LLC v. Edgepwr Holdings LLC, 2023 NY Slip Op 31893(U), denying a motion for a preliminary injunction in aid of arbitration for lack of irreparable harm, since the petitioner's claims of irreparable harm were based on the "possible problematic retrieval of proceedings," which "goes to monetary relief," explaining:

Further, as the relief sought here is monetary in nature, a preliminary injunction is in not appropriate (Credit Agricole Indosuez v Rossiyskiy Kredit Bank, 94 NY3d 541 [2000]). As such, petitioner's claims of irreparable harm based on the possible problematic retrieval of proceeds, also goes to monetary relief. Accordingly, petitioner's motion for a preliminary injunction is denied (see New York City Off-Track Betting Corp. v New York Racing Ass'n, Inc., 250 Ad2d 437, 673 N.Y.S.2d 387 [1st Dept 1998]).

Courts grant preliminary injunctions only when the movant shows that it has no adequate remedy at law. Generally, if money damages could satisfy the movant, then the movant has an adequate remedy at law, and there is no basis for entry of a preliminary injunction. Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning motions for a preliminary injunction or the irreparable-harm requirement.