Gordon Rees Scully Mansukhani Boston Partners James Messenger and Brian Wall, and Charleston Managing Partner Peter Siachos, recently secured a win in a contested case within the Second Circuit. The team successfully defended an appeal against a district court's decision, upholding a default judgment, permanent injunction, and contempt order against the defendants.
The case centered around GRSM's client, a national tax preparation franchisor, seeking action for breach of franchise agreement terms, misappropriation of trade secrets, and tortious interference by former franchisees. Messenger, Wall, and Siachos secured a preliminary injunction from the United States District Court for the Eastern District of New York, followed by a default judgment, permanent injunction, and contempt order.
Facing an appeal at the United States Court of Appeals for the Second Circuit, the GRSM team presented a robust brief and oral argument conducted by Messenger. The Second Circuit affirmed the lower court's decision, acknowledging the defendants' "willful default and the absence of meritorious defenses." The court also recognized the preliminary injunction as "reasonable" and "necessary to protect" a "legitimate business interest."