Jet Midwest International Co. v. Ohadi, No. 19-1098 (8th Cir. 2020)
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The Eighth Circuit affirmed the district court's order granting Jet Midwest and PMC's motion for a preliminary injunction to prevent Appellant Ohadi and Woolley from foreclosing on the assets of JMG until the parties conduct an expedited trial on the merits of the underlying fraudulent transfer act.
The court held that the district court properly applied the Dataphase factors and did not abuse its discretion in making the reasonable decision to grant the preliminary injunction to maintain the status quo and expedite the trial to further develop the record. In this case, the district court did not abuse its discretion in determining that Jet Midwest demonstrated a likelihood of success on the merits where there was no dispute that the sale initially contained parts from Jet Midwest's Aircraft and that Jet Midwest had a purchase money interest in the Aircraft; Jet Midwest would suffer irreparable harm if Ohadi and Woolley were allowed to proceed with the foreclosure sale; Ohadi and Woolley's burden is outweighed by the serious potential harm Jet Midwest would face if Ohadi and Woolley conducted a foreclosure sale of its possible interests; and the district court did not abuse its discretion in finding that the public interest favored enforcing the injunction to prevent fraud.
Court Description: [Smith, Author, with Colloton and Stras, Circuit Judges] Civil case - Missouri Uniform Fraudulent Transfer Act. The district court did not abuse its discretion in entering a preliminary injunction preventing a foreclosure sale of items at issue in plaintiff's action under the Missouri Uniform Transfer Act; there was no dispute that the sale initially contained parts from Jet Midwest's Aircraft and that Jet Midwest had a purchase money interest in the Aircraft; in light of this the district court did not abuse its discretion in concluding that Jet Midwest had demonstrated a likelihood of success, as well as the fact that it would suffer irreparable harm if the items were sold as they would impossible to trace; additionally, the court did not err in determining the balance of harm favored Jet Midwest, as did the public interest in preventing fraud.
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