Grupo Mexicano de Desarrollo v. Alliance Bond Fund
Supreme Court
527 U.S. 308 (1999)
Relevant factsFree
Alliance Bond Fund and related investors (plaintiffs) held $75 million in unsecured notes from Grupo Mexicano de Desarrollo (GMD) (defendant), which defaulted after financial trouble. Suing for money damages, Alliance obtained a preliminary injunction barring GMD from transferring assets or favoring other creditors, after showing near-certain success on the merits and likely irreparable harm, and posting a $50,000 bond; the Second Circuit affirmed the injunction, and the Supreme Court granted certiorari.
IssueFree
Whether a federal district court has the equitable power to issue a preliminary injunction barring a defendant from disposing of assets in an action seeking only money damages.
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