U.S. D.I.D. Corp. v. Windstream Communications, Inc., No. 13-206 (2d Cir. 2014)Annotate this Case
The district court granted a D.I.D. a temporary restraining order against Windstream, requiring D.I.D. to post security with the court clerk under Rule 65(c) of the Federal Rules of Civil Procedure. The district court later denied D.I.D.'s motion for a preliminary injunction and dissolved the TRO, concluding that D.I.D. failed to show a likelihood of success on the merits of the underlying suit. D.I.D. filed a notice of voluntary dismissal without prejudice under Rule 41(a)(1)(A)(i) and Windstream moved for an award of costs and damages from the TRO security. The court agreed that a district court may grant recovery from a TRO security after the plaintiff files a notice of voluntary dismissal. The court held that recovery from a TRO security requires only a determination that the defendant was wrongfully restrained, and not necessarily a final adjudication on the merits. The court vacated the district court's judgment because it never made this specific determination. The court remanded for the district court to determine, whether, and for what time period, Windstream was wrongfully restrained by the TRO, and to calculate the damages accordingly.