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SLOTT v. PLASTIC FABRICATORS (01/16/61)

January 16, 1961

SLOTT
v.
PLASTIC FABRICATORS, INC., APPELLANT.



Appeal, No. 319, Jan. T., 1960, from order of Court of Common Pleas of Delaware County, March T., 1960, No. 2656, in case of David Slott v. Plastic Fabricators, Inc. et al. Order reversed.

COUNSEL

C. Norwood Wherry, with him Joseph D. Calhoun, for appellants.

Philip J. O'Malley, with him Paul R. Sand, for appellee.

Before Jones, C.j., Bell, Musmanno, Jones, Cohen, Bok and Eagen, JJ.

Author: Bell

[ 402 Pa. Page 434]

OPINION BY MR. JUSTICE BELL.

This appeal was taken from the Order of the Court below, which issued a preliminary injunction against Plastic Fabricators, Inc., Milton Cohen and Stanley G. Child, Jr. - appellants herein.

In Lindenfelser v. Lindenfelser, 385 Pa. 342, 343-344, 123 A.2d 626, we repainted a guide post so clearly that it has been followed ever since: "Our uniform rule is that, on an appeal from a decree which refuses, [or] grants... a preliminary injunction, we will look only to see if there were any apparently reasonable grounds for the action of the court below, and we will

[ 402 Pa. Page 435]

    not further consider the merits of the case or pass upon the reasons for or against such action, unless it is plain that no such grounds existed or that the rules of law relied on are palpably wrong or clearly inapplicable: [Citing cases]". Accord: Robinson Electronic Supervisory Co., Inc. v. Johnson, 397 Pa. 268, 154 A.2d 494; Rosenberg v. United States Lumber Co., 397 Pa. 658, 156 A.2d 532; Keystone Guild, Inc. v. Pappas, 399 Pa. 46, 159 A.2d 681.

The purpose of a preliminary injunction is to preserve the status quo as it now exists or previously existed before the acts complained of, and thus temporarily prevent irreparable injury or gross injustice. A preliminary injunction should not be granted unless the facts and circumstances - alleged or proved - and the exigencies of the situation appear to require instant (and at least temporary) injunctive relief. Applying these principles there were no reasonable grounds for this preliminary injunction especially as greater injury will likely be done by granting it than by refusing it. Cf. Pennsylvania Railroad v. Driscoll, 330 Pa. 97, 198 A. 130; Herman v. Dixon, 393 Pa. 33, 141 A.2d 576.

This is a three man corporation - Cohen and Child are its president and secretary (respectively) and its active managers. Plaintiff Slott and Cohen and Child are the sole owners of the stock of Plastic Fabricators, Inc. - each being the owner of 50 shares. Cohen and Child are two of the three members of the Board of Directors. Slott has never actively participated in the business since 1947.

In 1960 the Board of Directors adopted a resolution to voluntarily dissolve the corporation and called a special meeting of the stockholders for the purpose of voting upon that resolution. Pursuant to the resolution, Cohen and Child attended the ...


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