Citigroup Global Markets, Inc. v. VCG Special Opportunities Master Fund Ltd.
United States Court of Appeals for the Second Circuit
598 F.3d 30 (2010)
Citigroup Global Markets (CGMI) (plaintiff) sought to enjoin VCG Special Opportunities Master Fund (defendant) from arbitrating claims tied to an alleged credit-default swap violation by CGMI's affiliate, disputing whether VCG even qualified as CGMI's "customer" under the relevant agreement. The district court found CGMI showed likely irreparable harm and had raised serious questions on the merits (though not a likelihood of success), and that the balance of hardships tipped decidedly in CGMI's favor, so it granted a preliminary injunction under the circuit's alternative "serious questions" standard. VCG appealed, arguing recent Supreme Court cases required a straightforward likelihood-of-success showing instead.
Whether a movant may obtain a preliminary injunction by raising serious questions as to the merits of the action and showing that the balance of hardships tips decidedly in the movant's favor.