Assets to be Enjoined Must be Subject of Lawsuit

On February 26, 2024, Justice Masley of the New York County Commercial Division issued a decision in ERI/SNL 2015 Holdings LLC v. SNL Dev. Group LLC, 2024 NY Slip Op. 30604(U), holding that assets to be enjoined must be the subject of the lawsuit, explaining:

The assets at issue on a preliminary injunction must be the subject of the action.” (CPLR 6301.) This standard is no different for LLCs; the court rejects plaintiffs’ misconception of Reichman v Reichman, 88 AD3d 680 (2d Dept 2011) which is about preserving the corporate assets, books and records and computers; it did not enjoin defendant’s alleged personal assets. Likewise, since plaintiffs do not have a security interest, plaintiffs’ reliance on County of Suffolk v Love’M Sheltering, Inc., 27 Misc 3d 1127 (Sup Ct, Suffolk County 2010) is misplaced. Plaintiffs’ investment is not held in trust and the proceeds are not identifiable.

(Internal citations omitted).

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