On December 2, 2020, Mrachek Law Shareholder Scott Konopka and Associate Debra Hanifin obtained a temporary mandatory injunction from a trial court within the 19th Judicial Circuit in and for Martin County, Florida, requiring a 50% shareholder to cooperate with a company to close on a loan transaction involving a debenture sale. The loan transaction was at risk because the shareholder refused to agree to the loan transaction, even though it was in the best interests of the company and would benefit the company by extending an existing loan, reducing the interest rate pursuant to the terms of the debenture sale, and reducing the loan to value ratio. Under Florida law, an injunction is proper where irreparable harm is threatened, a clear legal right is a stake, and the remedy at law is inadequate, and in certain cases, considerations of public interest are concerned. A mandatory temporary injunction can be issued to compel specific performance of a contract. Wilson v. Sandstrom, 317 So. 2d 732, 736 (Fla. 1975). Applying this case law, the Court ordered the shareholder to cooperate and to proceed with the debenture sale as requested by the company.
Mrachek Law is a boutique business and construction litigation firm with offices in Stuart and West Palm Beach, Florida. The Firm handles litigation and arbitration matters on hourly, hybrid and contingency bases throughout Florida.
