Legal Memorandum: Temporary Restraining Order to an LLC in MN

Issue: What is the applicable standard for granting an LLC a Temporary Restraining Order (TRO) in Minnesota?

Area of Law: Business Organizations & Contracts, Litigation & Procedure
Keywords: Temporary restraining order; Limited liability company (LLC); Applicable
Jurisdiction: Minnesota
Cited Cases: None
Cited Statutes: None
Date: 07/01/2013

To be entitled to a TRO an LLC must demonstrate compliance with the five Dahlberg factors.  Although these five factors were originally developed for analyzing whether a temporary injunction is proper, they are also used to determine if a temporary restraining order is appropriate.  MGM Liquor Warehouse Int’l v. Forsland, 371 N.W.2d 71, 77 (Minn. Ct. App. 1985).  

The Court of Appeals has summarized the applicable law as follows:

Whether an injunction should issue involves consideration of five factors:

(1) The nature and background of the relationship between the parties preexisting the dispute giving rise to the request for relief.

(2) The harm to be suffered by plaintiff if the temporary restraint is denied as compared to that inflicted on defendant if the injunction issues pending trial.

(3) The likelihood that one party or the other will prevail on the merits when the fact situation is viewed in light of established precedents fixing the limits of equitable relief.

(4) The aspects of the fact situation, if any, which permit or require consideration of public policy expressed in the statutes, state and federal.

(5) The administrative burdens involved in judicial supervision and enforcement of the temporary decree.

Morse v. City of Waterville, 458 N.W.2d 728, 729 (Minn. Ct. App. 1990); Smith v. Peoples Nat’l Bank of Mora, No. 92-956 (Minn. Ct. App. May 14, 1996).