explaining strict requirements for issuing ex parte TRO
How later courts described this case
- explaining strict requirements for issuing ex parte TRO
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
FORT MYERS DIVISION
FREE SPEECH FOUNDATION,
INC. and JOSEPH GILBERT, an
Arizona nonprofit corporation,
Plaintiffs,
v. Case No.: 2:22-cv-714-SPC-NPM
SIMONE GOLD,
Defendant.
/
ORDER1
Before the Court is Plaintiffs Free Speech Foundation, Inc. d/b/a
America’s Frontline Doctors, Inc. (“AFLDS”) and Joseph Gilbert’s Verified
Motion for Temporary Restraining Order and Preliminary Injunction and
Incorporated Memorandum of Law. (Doc. 7).
First, some background is necessary. Defendant Simone Gold
incorporated the nonprofit ALFDS and served as its Director and Executive
Director from September 2020 through January 2022. Plaintiffs are the
nonprofit AFLDS, and AFLD’S current Board Chairman, Joseph Gilbert.
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Plaintiffs claim Gold resigned from the ALFDS Board in February 2022 and,
from then on, was no longer an ALFDS employee. Instead, ALFDS contracted
with Gold and her company, GoldCare, for consulting services.
After February 2022, the parties’ relationship deteriorated. Plaintiffs
make serious allegations against Defendant Simone Gold. Among them are
illegally using AFLDS funds for her personal benefit; interfering with AFLDs’
operations, funds, donor relationship, and employee relationships; improperly
seizing control of AFLD’S information technology, bank accounts, money, and
resources; fraudulently holding herself out as the representative, officer, and
director of AFLDS; and disparaging Gilbert. Plaintiffs sue and now move for
a temporary restraining order (“TRO”) and a preliminary injunction before
service.
A TRO is an “extraordinary and drastic remedy.” Mazurek v. Armstrong,
520 U.S. 968, 972 (1997). The purpose of a TRO is to preserve the status quo
so a court may hear a reasoned resolution of the dispute. United States v. DBB,
Inc., 180 F.3d 1277, 1282 & n.5 (11th Cir. 1999).
Here, the Court denies Plaintiffs’ request for a TRO for a number of
reasons.
First, Plaintiffs’ motion is procedurally deficient. Local Rule 6.01(a)(3)
requires “a precise and verified explanation of the amount and form of the
required security.” M.D. Fla. R. 6.01(a)(3). This relates to the Fed. R. Civ. P.
65(c)’s requirement for security. Fed. R. Civ. P. 65(c) (“The court may issue a
preliminary injunction or a temporary restraining order only if the movant
gives security in an amount that the court considers proper to pay the costs
and damages sustained by any party found to have been wrongfully enjoined
or restrained.”). The Court directed Plaintiffs to this requirement in its
previous order (Doc. 6). But the only thing Plaintiffs include about security is
a fill-in-the-blank phrase in their proposed Order that Plaintiffs must file bond.
They do not specify the appropriate amount or form and do not provide an
explanation for any amount. This does not meet the local rule requirement.
Second, the Supreme Court has recognized that “informal notice and a
hastily arranged hearing are to be preferred to no notice or hearing at all.”
Granny Goose Foods, Inc. v. Bhd. of Teamsters and Auto Truck Drivers Local
No. 70 of Alameda Cnty., 415 U.S. 423, 432 n.7 (1974); see also Hope v. Warden
York Cnty. Prison, 972 F.3d 310, 320-21 (3d Cir. 2020) (explaining strict
requirements for issuing ex parte TRO). Plaintiffs acknowledge that it is not
their intent “to seek a no-notice hearing.” (Doc. 7 at n.1). They have delivered
the summons and complaint to a process servicer and have inquired of
Defendant’s counsel if they would accept service. Id. This is a situation where
an arranged hearing can occur. To accomplish this, the Court orders Plaintiffs
to serve the Complaint and file either proof of service of the Complaint, or
Waiver, on or before Wednesday, November 16, 2022. The Court will hold a
status conference on a preliminary injunction hearing on November 18, 2022.
Third, at least some of Gold’s alleged conduct was known to ALFDS for
months, raising skepticism that the Court must act now ex parte with no
hearing. Plaintiffs were aware of Gold’s asserted inappropriate use of AFLDS
funds since at least June 2022. By that time, Plaintiffs had “hired a forensic
auditor, obtained a compensation study and had its outside accounting firm
begin a financial audit in order to determine what next steps should be taken
with regard to Gold’s use of AFLDS funds for her personal use.” (Doc. 7). Also,
by October 4, 2022, Plaintiffs allege Gold made accusations against Gilbert, a
claim in this case, and demanded board members resign and threatened
litigation by October 12, 2022. Certainly, Plaintiffs allege more recent
inappropriate conduct by Gold and the Court takes those allegations seriously.
But the amount of time Plaintiffs knew about much of Gold’s alleged, and
substantial, inappropriate conduct speaks against this being a true emergency.
So the Court denies Plaintiff’s motion to the extent that it seeks a TRO.
Once Plaintiff serves the Complaint or obtains a waiver, the Court will set this
matter for an in-person status conference to discuss a preliminary injunction
hearing.
Accordingly, it is now
ORDERED:
1. Plaintiffs Motion for a Temporary Restraining Order and
Preliminary Injunction (Doc. 7) is DENIED to the extent it seeks a
temporary restraining order. The Court RESERVES ruling on a
preliminary injunction.
2. The Court ORDERS Plaintiffs to serve the complaint and file either
proof of service of the Complaint, or Waiver, on or before Wednesday,
November 16, 2022.
3. The Clerk is DIRECTED to set this case for an in-person status
conference on November 18, 2022, at 10:30 a.m. to discuss a
preliminary injunction hearing.
DONE and ORDERED in Fort Myers, Florida on November 10, 2022.
UNITED STATES DISTRICT JUDGE
Copies: All Parties of Record