In action alleging that defendant violated terms of contract requiring defendant to sell its business to plaintiff once plaintiff exercised option to purchase said business as part of same contract requiring plaintiff to purchase loans that defendant made to third parties and to pay defendant to service said loans, Dist. Ct. erred in granting defendant’s request for entry of preliminary injunction to require plaintiff to continue to purchase defendant’s loans and to pay defendant for servicing said loans until Dist. Ct. resolved sale of business issue. Said injunction improperly failed to limit duration of injunction to June 1, 2018 drop dead date contained in contract, after which neither party would have any obligation to perform under terms of contract, and Dist. Ct. otherwise failed to enter instant injunction as separate document as required under Rule 65(d)(1)(C). Also, Dist. Ct. failed to require that defendant post bond to cover any losses plaintiff might sustain should there be future finding that it was wrongfully enjoined. As such, remand was required for determination as to whether plaintiff sustained any damages incurred after June 1, 2018 drop dead date by reason of instant injunction and to determine whether either side owes damages to other for any breach of contract calling for sale of defendant's business.
Federal 7th Circuit Court
Civil Court
Injunction