{"id":664,"date":"2013-12-23T17:59:20","date_gmt":"2013-12-23T17:59:20","guid":{"rendered":"https:\/\/www.bfvlaw.com\/what-happens-when-an-injunction-being-challenged-expires-during-the-appeal\/"},"modified":"2013-12-23T17:59:20","modified_gmt":"2013-12-23T17:59:20","slug":"what-happens-when-an-injunction-being-challenged-expires-during-the-appeal","status":"publish","type":"post","link":"https:\/\/www.bfvlaw.com\/what-happens-when-an-injunction-being-challenged-expires-during-the-appeal\/","title":{"rendered":"What Happens When an Injunction Being Challenged Expires During the Appeal?"},"content":{"rendered":"

Leedom Management Group, Inc. v. Perlmutter<\/em>, 2013 WL 5340781 (11th<\/sup> Cir. Sept. 25, 2013), involved the appeal of the scope of a preliminary injunction enjoining competition.\u00a0<\/span><\/p>\n

Leedom <\/em>Management Group <\/em>provides automated clearing house and credit card processing services to automobile dealerships.\u00a0 Susan Perlmutter is Leedom\u2019s former employee.\u00a0 Perlmutter\u2019s employment agreement with Leedom provided that she was restricted for a period of one year after her termination from engaging in the same line of business, disclosing any information relating to Leedom, or soliciting any entity with which Leedom had established a substantive business relationship.\u00a0 The contract stated that the geographic scope of these restrictions was within a fifty mile radius of any location in which Leedom is conducting business.<\/span><\/p>\n

After Perlmutter was terminated, she formed a similar business in Tennessee.\u00a0 Leedom <\/em>filed suit in Florida in September 2011, asserting that her activities violated the non-competition, non-solicitation, and non-disclosure covenants in her employment agreement.\u00a0<\/span><\/p>\n

Leedom sought a preliminary injunction to preclude her from operating her business and from soliciting Leedom\u2019s clients. The district court entered a preliminary injunction which was to be in effect until December 21, 2012.\u00a0 The injunction prohibited Perlmutter from competing with Leedom; however, it did not specify the geographic scope of the injunction.\u00a0 Instead, the order directed the parties to negotiate an appropriate geographic scope.\u00a0 If they were unable to, the matter would be referred to a magistrate judge to define the scope.\u00a0<\/span><\/p>\n

Not unsurprisingly, the parties could not agree on the geographic scope.\u00a0 In a May 2012 order, the magistrate judge defined the geographic scope to cover all zip codes in which Leedom had a client.\u00a0 Perlmutter filed objections to this ruling.\u00a0 The district court sustained her objections and modified the scope.\u00a0 The modified injunction prohibited her from doing business or soliciting clients within fifty miles of Leedom\u2019s Sarasota, Florida\u2019s office.\u00a0 The district court found that this location was Leedom\u2019s sole place of business.\u00a0 The modified injunction had the same termination date.\u00a0<\/span><\/p>\n

Leedom, dissatisfied with the injunction as modified, appealed the modification order.\u00a0 While its appeal was pending, the injunction expired.\u00a0 Perlmutter then moved to dismiss the appeal as moot.\u00a0 The Eleventh Circuit agreed, finding that because the order had expired, there was no live case or controversy with respect to the injunction.\u00a0 The Eleventh Circuit therefore found that to opine on the merits of the district court\u2019s injunction would be an improper advisory opinion.\u00a0 The Eleventh Circuit therefore dismissed the appeal as moot.\u00a0<\/span><\/p>\n

The Supreme Court of Georgia made a similar ruling this year.\u00a0 Holton v. Physician Oncology Services, LP<\/em>, 292 Ga. 846, 866 (Ga. 2013), involved, in part, the appeal of an injunction enforcing an executive\u2019s non-competition covenant.\u00a0 That portion of the trial court\u2019s injunction expired during the appeal.\u00a0 The Supreme Court therefore dismissed that portion of the appeal.\u00a0 (The Supreme Court\u2019s analysis of the remainder of the injunction which was premised on the inevitable disclosure doctrine is discussed here<\/a><\/span>\/subscription may be required<\/span>).\u00a0<\/span><\/p>\n

Holton<\/em> and Leedom<\/em> serve as reminders that litigants challenging an injunction with an expiration date run the risk of having their appeals rendered moot if the injunction expires during the appeal.\u00a0 A request to the trial court and\/or appellate court to stay the injunction pending the appeal is frequently the appealing litigant\u2019s best way to try to avoid this possibility.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Leedom Management Group, Inc. v. Perlmutter, 2013 WL 5340781 (11th Cir. Sept. 25, 2013), involved the appeal of the scope of a preliminary injunction enjoining competition.\u00a0 Leedom Management Group provides automated clearing house and credit card processing services to automobile dealerships.\u00a0 Susan Perlmutter is Leedom\u2019s former employee.\u00a0 Perlmutter\u2019s employment agreement with Leedom provided that she […]<\/p>\n","protected":false},"author":18,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_mo_disable_npp":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[4,9],"tags":[25,16],"acf":[],"yoast_head":"\nWhat Happens When an Injunction Being Challenged Expires During the Appeal? - Berman Fink Van Horn P.C.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bfvlaw.com\/what-happens-when-an-injunction-being-challenged-expires-during-the-appeal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Happens When an Injunction Being Challenged Expires During the Appeal? - Berman Fink Van Horn P.C.\" \/>\n<meta property=\"og:description\" content=\"Leedom Management Group, Inc. v. Perlmutter, 2013 WL 5340781 (11th Cir. 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