Fill and Sign the Injunction 481367435 Form

-1- I. SUMMARY OF ARGUMENT The Court should enter a Temporary Restraining Order and Preliminary Injunction prohibiting __________ from advertising, proceeding with or taking any other action with regard to __________ attempt to foreclose on certain Deeds of Trust executed by __________ (the "__________") on lands located in __________Counties, __________. Injunctive relief is necessary to maintain the status quo until the issue of whether the promissory notes which the deeds of trust secure are due and payable or whether Whitney has agreed to forbear collect ion of the notes. The issue of whether the notes are due and payable or whether __________ has agreed to forbear collection of the notes is currently the subject of two legal proceedings between __________ and the __________ one on appeal to the United States Court of Appeals for the Fifth Circuit from the United States District Court for the __________ District of __________ and the other presently before the United States District Court for the __________ District of __________. However, neither court has ruled whether or not __________ is entitled to demand the immediate payment of the amount claimed to be due from the __________ and these forecl osure proceedings are an attempt by __________ to obtain prejudgment seizure and attachment of the __________ property and to otherwise unfairly gain an advantage over the __________ prior to a determination of the parties' respective rights in the two federal court cases. __________ courts have long held that land is peculiar in nature and __________ foreclosures of the __________property in __________ Counties, __________, will result in immediate and substantial irreparable harm, damages and losses to the __________. The __________ do not have an adequate remedy at law. Moreover, __________ attempt to foreclose on the __________' property prior to a determination of liability constitutes an attempt to obtain a prejudgment seizure and attachment in violation of the due process provisions of the __________ Constitution. Courts have also long recognized that the violation of a person's constitutional right constitutes irreparable harm for which there is no adequate remedy at law. The __________ should be required to post only a minimal security bond upon the issuance of injunction relief. Rule _____ of the __________ Rules of Civil Procedure provides that while security must be given upon the issuance of a temporary restraining order or preliminary injunction, the amount of such security is at the discretion of the court. In a case suc h as this, -2- where the creditor is over secured and where the collateral is real property which is appreciating, rather than depreciating, in value, only a minimal security bond is necessary because as a practical matter the damages which may be incurred or suffered by __________ should it be found to have been wrongfully enjoined or restrained would be insignificant. I. FACTUAL BACKGROUND For over ___ years, the __________ have been in the business of acquiring, developing, investing in, and selling properties and other assets, which include mineral interests, oil and gas leases, oil and gas wells, real estate and timberland. The nature of this busine ss is speculative and requires long-term loans, long-term financing, and long-term forbearance from a lending institution, which is willing to loan money long-term on and for speculative properties a nd to await the development or sale of the properties to be paid. The __________ began doing business with __________ in ______. The __________ relied on __________'s assurances that __________ would provide the __________ with long-term loans, financing, and, most importantly, the necessary forbearance which the __________ would need over a long period of time in order to acquire, develop, and sell properties at the most optimum prices available. Since _______, the __________ have been one of the substantial customers of __________. __________ has provided the __________ with long-term loans, financing, and the necessary forbearance for the __________' acquisition, development, investment, and sale of various properties. Pursuant to written and verbal agreements, including modifications and amendments of notes, and the long-standing course of dealing between the parties, __________, e.g. , has loaned money to the __________, has advanced monies to the __________ in anticipation of sale, has encouraged the __________ to acquire properties, has paid debts owed by the __________ and has rolled the payments into the __________' account, and has paid down the __________' account with proceeds received from time to time from the __________' income producing properties and the __________' periodic sales of properties. __________ has repeatedly waived the strict enforcement of the default provisions of the written agreem ents between them and the __________ have relied to their detriment on these agreements. For example, the __________ are presently involved in a sale of approximately 7500 acres of timberland in __________ on which __________ holds a second mortgage. The __________ have at all times kept __________ fully apprised of the __________' efforts to sell the -3- timberland and of the proposed sale, with the agreement and understanding that the __________ will use a portion of the sale proceeds to bring current the accrued interest on the __________ debt to the Bank. This course of dealing between the __________ and the __________ has been followed since _______.The relationship between the __________ and __________ has been a long-standing fiduciary relationship of mutual trust and confidence for the mutual benefit and profit of both the __________ and __________. __________ has exercised a degree of control and influence over the __________' business activities. The __________ and __________ have both benefited from the relationship. Since ________, the __________ have paid __________ over $00.00 in interest and $00.00 in principal in connection with loans made by __________ to the __________. The __________ have secured __________ with various mortgages, deeds of trust, and security interests in properties located in __________, __________, and __________ Counties, __________. These properties include mineral interests, real estate, oil and gas leases, oi l and gas wells, and timberlands. The value of these properties more than secures the __________' debt to __________. Although the __________ are not in default, __________, in breach of its agreements with the __________ and its fiduciary duties and its duties of good faith and fair dealing, has demande d that the __________ immediately pay the Bank $00.00 in claimed principal and intere st. On __________, _________ , the __________ filed suit in the United States District Court for the __________ District of __________ against __________ for various claims including, breach of contract and a declaratory judgment that the __________ indebtedness to __________ is not due (the "__________ case"). A copy of the complaint filed by the __________ in the __________ case is attached to the Verified Complaint filed herein as Exhibit "B" and incorporated by reference. Subsequently, __________ sued the __________ in the United States District Court for the __________ District of __________ for recovery of the amount claimed to be due (the "__________ case"). A copy of the complaint filed by __________ in the __________ case is attached to the Verified Complaint filed herein as Exhibit "C" and incorporated by reference. The __________ case is presently on appeal to the United States Court of Appeals for the Fifth Circuit. The __________ case is still active in the __________ district court. Neither the c ourt in the __________ case nor the court in the __________ case has ruled as to whether or not __________ is entitled to demand the immediate payment of the amount claimed to be due. -4- __________'s demand for immediate payment is a breach of the agreements between the __________ and __________ for __________ to provide the __________ with long-term loans, financing, and the necessary forbearance while the __________, e.g., develop and sell various properties, so as to apply the proceeds received to reduce the __________' debt to __________. __________ is estopped to deny, dispute, renege on or breach its agreements with the __________ and from demanding or receiving the immediate payment of the __________' outstanding account, an account which is fully secured by various deeds of trust, mortgages and security interests and has waived strict enforcement of the default provisions of the wri tten agreements between them. As a portion of the security for their indebtedness to the __________, the __________ on __________, _______ executed a certain Land Deed of Trust to __________, Trustee, for the benefit of __________ , which is recorded in Book __________, Pages __________, Record of Mortgages and Deeds of Trust on Land, __________ County, __________, First Judicial District and in Book __________, Pages __________, Record of Mortgages and Deeds of Trust on Land, __________ County, __________. By instrument dated __________, ________, __________, as owner and holder of the said Land Deed of Trust substituted __________, as Substituted Trustee, in place of and in lieu of __________, which instrument is recorded in Substituted Trustee Book __________, Pages __________, on file in the office of the Chancery Clerk of __________ County, __________, First Judicial District, and in Substituted Trustee Book __________, Pages __________, on file in the office of the Chancery Clerk of __________ County, __________. On __________, _______, __________ commenced foreclosure of said Land Deed of Trust by posting a "Substituted Trustee's Notice of Sale" on the main bulletin board at the __________ County Courthouse in __________, __________, and by commencing publication of said "Substituted Trustee's Notice of Sale" in __________. The "Substituted Trustee's Notice of Sale" was published by said newspapers on __________, ________. A copy of the "Substituted Trustee's Notice of Sale" is attached to the Verified Complaint filed herein as Exhibit "A" and incorporated by reference. I. ARGUMENT -5- The __________ Are Entitled to Injunctive Relief to Prevent Irreparable Harm and Maintain the Status Quo Pending a Decision on the Issue of Whether the __________' Indebtedness to __________ Is Immediately Due and Payable The __________ are entitled to entry of a Temporary Restraining Order and Preliminary Injunction against __________, __________, enjoining and prohibiting said Defendants from advertising and taking any other actions in an attempt to foreclose on the Deed of Trust executed by the __________ on lands located in __________ Counties, __________ as security for their indebtedness to __________. Such injunctive relief is necessary to maintain the status quo pending resolution of the question of whether the promissory notes which the deeds of trust secure are due and payable. As the court noted in Rochelle v. State, 75 So.2d 268 (Miss. 1954): The true object and purpose of an interlocutory injunction is to hold and preserve in status quo the subject matter upon which the decree is to operate until the court is able to finally adjudicate the rights and duties of the parties. Griffith Miss. Chancery Practice (2d ed. 1950), Secs. 442, 443. Rochelle , 75 So.2 at 270. When granting a temporary restraining order or preliminary injunction, the status quo which courts try to preserve has been almost uniformly defined as the "last uncontested status which preceded the pending controversy." Miss. Power & Light v. United Gas Pipeline , 609 F. Supp. 333 (D.C. Miss. 1985). In the present case, the status quo can only be maintained by a preliminary injunction which prohibits any further efforts by the Defendants to foreclose on the __________' properties in __________ Counties, __________. The issuance of temporary restraining orders and preliminary injunctions are governed by Rule ___ of the __________ Rules of Civil Procedure. Under Rule ____, the circumstances in which a preliminary injunction may be granted are not described, but are a matter of the trial court's discretion, to be exercised in conformity with traditional equity practices. See Moore v. Sanders, 558 So.2d 1383, 1385 (Miss. 1990). In the present case, equity requires that the Defendants be prohibited from proceeding with foreclosure. Under __________ jurisprudence, irreparable injury is the only finding a court must make before it may issue a TRO or preliminary injunction. If the status quo is not maintained, the __________ will undoubtedly suffer irreparable harm for which they have no adequate remedy at law. However, in order for a remedy at law to be deemed adequate, the remedy must be as effectual and speedy as the remedy and equity. Rockett v. Finley, 184 So. 78, 80 (Miss. 1938). As the court stated in Moss v. Jourdan, 92 So. 689 (Miss. 1922): -6- The term "irreparable" has acquired in the law of injunctions a meaning, which, perhaps, is not quite in keeping with the derivation of the word or its literal signification. There are injuries incapable of being repaired, which a court of equity does not regard, as irreparable. And, on the other hand, there are injuries that may be repaired which it will, nevertheless, treat as irreparable, if the person inflicting or threatening them be insolvent or unable to respond in damages. As ordinarily used, the term means that which cannot be repaired, restored or adequately compensated for in money, or whether compensation cannot be safely measured. Moss , 92 So. at 690, quoting R.C.L. pp. 346-47. Hence, the essential features of an "irreparable" injury are: (1) That the injury is an act, which is a serious change of, or is destructive to, the property it affects either physically or in the character in which it has been held and enjoyed. (2) That the property must have some peculiar quality or use such that its pecuniary value, as estimated by a jury, will not fairly recom- pensate the owner for its loss. Hood v. Foster , 13 So.2d 652, 654 (Miss. 1943). However, where the subject matter of the injunctive relief is real property, the c ourts have recognized that "land is per se property of peculiar value, and will be protected by injunction without reference to its quality, use or value." Id. It appears that courts have made land a subject for protection by injunction for the same reasons that land is a subject for specifi c perfor- mance without reference to its quality, use or value in cases of contracts. Moss, 92 So., at 691, quoting, 5 Pomeroy's Equity § 495. In addition, __________'s institution of these foreclosure proceedings on the __________' properties in __________ Counties, __________ is an effort by __________ to obtain prejudgment seizure and attachment of the __________ property and to otherwise unfairly gain an advantage over the __________ prior to a determination of their rights by the Federal Courts, in violation of the __________ right to due process under Section ___ of the __________ Constitution. If the Defendants are not prohibited from foreclosing, the __________ will suffer substantial and irreparable damages and losses as a result of a violation of their sta te constitutional rights. The __________ courts have long recognized that a preliminary injunction or temporary restraining order is appropriate in situations similar to the case at hand. For exam ple, in Barcroft v. Armstrong , 21 So.2d 817 (Miss. 1945), Armstrong brought an action to enjoin foreclosure of his deed of trust in favor of the Allied Trust Company, Ltd. The defendants were P. B. Barcroft, individually and as trustee in the deed of trust, C. F. Williams, an agent of the defendant, -7- Alliance Trust Company, Ltd., who was beneficiary, and two newspapers, The Natchez Democrat Printing and Publishing Company, Inc. and The Woodville Republican. Armstrong raised a number of claims in its suit, including the allegation that the balanc e due was less than that claimed by the mortgagee or beneficiary; that the balance was to be com puted in the light of an alleged agreement with the mortgagee to reduce the interest rate to six percent (6%); that the attempted foreclosure was premature; that the foreclosure was for an excessive amount; and contemplated foreclosure of lands not properly a part of the security. Id., at 818. Upon the filing of the suit, the court immediately issued a preliminary injunction restraining any a dvertisement or other proceeding toward foreclosure until a final hearing could be held by the Chancell or to fix the rights between the parties. Id. Like the plaintiff in Barcroft, the __________ are entitled to injunctive relief to prevent and enjoin the Defendants from advertising or taking any other proceedings regarding foreclosure of the __________ property in __________ Counties, __________. Until adjudication in one of the federal court cases that the __________ indebtedness to __________ is immediately due and payable, __________ is not entitled to foreclose. Allowing the Defendants to proceed with foreclosure will undeniably result in irreparable harm to the __________. Equity requires that a TRO and preliminary injunction be issued. I. ONLY A MINIMAL SECURITY BOND SHOULD BE REQUIRED FROM THE __________ Upon the issuance of a temporary restraining order or preliminary injunction in this matte r, the __________ should only be required to provide a minimal security bond. While Rule ____ under the __________ Rules of Civil Procedure provides that security must be given upon the issuance of a temporary restraining order or preliminary injunction, the amount of such security is at the discretion of the Court. International A.B.S. & O.I. v. H. L. Byrd Building Service, Inc. , 284 So.2d 301, 304 (Miss. 1973). A Chancellor's decision regarding the amount of security required will not be disturbed on appeal except upon an abuse of discretion. Broom v. Hattiesburg Building & Trades Council , 206 So.2d 184 (Miss. 1967). In the present case, the collateral which the __________ have pledged to __________ as security in its indebtedness, exceeds the amount of their debt to __________ and __________ is therefore over secured. Moreover, the security is real property, which continues to appreciate, rather t han depreciate in value. In such a situation, it is clear that a minimal sec urity bond should be -8- required. Any damages which __________ might incur or suffer as a result of a preliminary injunction or temporary restraining order, should it be determined that such injunctive relieve was wrongfully issued, would be insignificant. In this situation, the __________ should only be required to post a minimal security bond. I. CONCLUSION The Court should enter a Temporary Restraining Order and Preliminary Injunction prohibiting __________ from advertising, proceeding with or taking any other action with regard to __________ and __________ attempt to foreclose on certain Deeds of Trust executed by __________ on lands located in __________ Counties, __________. Injunctive relief is necessary to maintain the status quo until the issue of whether the promissory notes which the deeds of trust secure are due and payable or whether __________ has agreed to forbear collection of the notes. The issue of whether the notes are due and payable or whether __________ has agreed to forbear collection of the notes is currently the subject of two legal proceedings between __________ and the __________. Neither court has ruled that __________ is entitled to demand the immediate payment of the amount claimed to be due from the __________ and these foreclosure proceedings are an attempt by __________ to obtain prejudgment seizure and attachment of the __________ property and to otherwise unfairly gain an advantage over the __________ prior to a determination of the parties' respective rights in the two federal court cases. __________ courts have long held that land is peculiar in nature and __________'s foreclosures of the __________' property in __________ Counties, __________, will result in immediate and substantial irreparable harm, damages and losses to the __________. Moreover, __________'s attempt to foreclose on the __________' property prior to a determination of liability constit utes an attempt to obtain a prejudgment seizure and attachment in violation of t he due process provisions of the __________ Constitution. The __________ do not have an adequate remedy at law. The __________ should be required to post only a minimal security bond upon the issuance of injunction relief. Rule ___ of the __________ Rules of Civil Procedure provides that while security must be given upon the issuance of a temporary restraining order or preliminary injunction, the amount of such security is at the discretion of the court. In a case suc h as this, -9- where the creditor is over secured and where the collateral is real property which is appreciating, rather than depreciating, in value, only a minimal security bond is necessary because as a practical matter the damages which may be incurred or suffered by __________ should it be found to have been wrongfully enjoined or restrained would be insignificant. THIS, the _____ day of __________, ______. Respectfully submitted,__________ By:_________________ ATTORNEYS FOR PLAINTIFFS