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Belkin v.
Levenson, 19 Mass. L. Rep. 621, 2005 Mass. Super. LEXIS
366
(Aug. 9, 2005) (van Gestel, J.). |
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This case involved a disagreement between
the managers of the Atlanta Hawks NBA franchise over a
proposed trade for former Boston Celtic Joe Johnson.
Belkin, who was the Hawks’ designated NBA Governor with
final authority over the trade, favored the proposed
trade. The remaining managers of the Hawks opposed the
trade and sought to oust Belkin as the Hawks’ NBA
Governor for agreeing to a trade with which all of his
partners disagreed. Belkin moved for a preliminary
injunction preventing his partners from removing him as
NBA Governor. The Court allowed Belkin’s motion for a
preliminary injunction. In so doing, Judge van Gestel
held that the provision in the operating agreement that
a breach of any provision would cause irreparable harm
obviated the need to conduct the traditional irreparable
harm analysis.
This is an interesting case because
irreparable harm is often the most difficult |
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element to satisfy when seeking an
injunction. Judge van Gestel, perhaps due in substantial
part to the sophistication of the parties, accepted the
contractual stipulation that a breach of any provision
of the operating agreement would cause irreparable harm.
A motion for an injunction in a breach of contract
dispute may relate to a contract signed much earlier.
Three days later, Judge van Gestel
vacated the injunction upon submission of an affidavit
from NBA Commissioner David Stern stating that he would
approve any request to remove Belkin as the Hawks NBA
Governor (Commissioner Stern’s approval was required to
remove Belkin). Notwithstanding that the traditional
vehicle for challenging an injunction is an
interlocutory appeal under G.L. c. 231, § 118, the Court
held that this extraordinary change in circumstance
warranted reconsideration of the prior order.
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