National Fire & Marine Insurance Co. v. Salem et al

Filing 35

ORDER granting 30 motion to modify the preliminary injunction; denying 29 motion for contempt without prejudice to refiling. The plaintiff may refile the motion for contempt if the defendants fail to comply with the modified preliminary injunction. SEE ATTACHED. Signed by Judge Alfred V. Covello on April 16, 2013. (Gentile, N.)

UNITED STATES DISTRICT COURT
DISTRICT OF CONNECTICUT
NATIONAL FIRE & MARITIME
INSURANCE CO., INC.,
Plaintiff,
v.
NORMAN J. SALEM and MANHATTAN
UNDERWRITING AGENCY, LLC,
Defendants.

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Civil No. 3:13CV291(AVC)

MODIFIED PRELIMINARY INJUNCTION ORDER
This matter came on a hearing before the court on the
plaintiff’s emergency motion for a preliminary injunction order.
Having considered motion, the memorandum of law in support
thereof, the declarations of Maria Geyer and Joseph Casaccio,
and the memorandum of law in support of the plaintiff’s previous
motion for a preliminary injunction (ECF No. 5.), the court
finds, from the specific facts shown, that there is a likelihood
that the plaintiff will succeed on the merits of its claims
against the defendants and that the plaintiff will be
irreparably harmed in the absence of modification to the court’s
previous preliminary injunction (ECF No. 22).
Accordingly, the emergency motion to modify the preliminary
injunction order is hereby GRANTED. It is hereby ORDERED,
ADJUDGED, and DECREED that, pursuant to the court’s March 19,
2013 order (ECF No. 22), Manhattan Underwriting Agency, L.L.C.
and each of its agents, servants, employees and representatives,

and those persons acting in concert or participation with any of
them, be preliminarily enjoined, until further order of this
court, from:


interfering in any way in National Indemnity Trust
Company's rights and obligations under the Production
Agreement (Ex. A to the Casaccio Affidavit);



interfering in any way in the plaintiff’s right to copy,
inspect and audit records relating to Plaintiff’s business
pursuant to the Production Agreement;



acting under color of the plaintiff’s authority in any way;



transferring, assigning, pledging, giving away or otherwise
dissipating any premium funds that Defendants have
collected or collect from the plaintiff’s policy holders,
except as so ordered by this court;



destroying, altering, or changing in any way any and all
records, including financial, relating to the plaintiff’s
business; and collecting any premiums on the plaintiff’s
behalf.

Manhattan Underwriting Agency is further ORDERED to direct any
and all premiums received by it to National Indemnity Company
and deposit with the court the entire balance of premium funds
received by Manhattan Underwriting Agency on behalf of Plaintiff

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and in Manhattan Underwriting Agency’s possession or control by
no later than April 22, 2013.
It is FURTHER ORDERED that Manhattan Underwriting Agency,
L.L.C. and each of its agents, servants, employees and
representatives, and those persons acting in concert or
participation with them or any of them are directed to allow
National Fire & Marine Insurance Company immediate access to all
electronically stored information including all computer hard
drives and electronic accounting systems, all records of all
bank accounts, and all records relating to National Fire &
Marine Insurance Company’s insurance policies within their
possession, custody or control.
It is FURTHER ORDERED that National Fire & Marine Insurance
Company may, in the accompaniment of a U.S. Marshal, enter the
property of Manhattan Underwriting Agency to access and copy the
above described electronically stored information and records.
It is FURTHER ORDERED that any and all financial
institutions who receive notice of this Order and all persons
acting in concert or in participation with any of them are
enjoined and restrained from transferring, disposing of, or
secreting any money, stocks, bonds, real or personal property,
or other assets of Manhattan Underwriting Agency, L.L.C. out of
any accounts associated with or utilized by Manhattan
Underwriting Agency, L.L.C except for the transfer of money into
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accounts held by National Fire & Marine Insurance Company or
National Indemnity Company or for deposit into the court as
ordered by this court. Good cause having been shown, it is
further ORDERED that the foregoing preliminary injunction shall
issue without the posting of a bond by Plaintiff.
SO ORDERED, this 16th day of April, 2013.

______/s/___________________
Alfred V. Covello,
United States District Judge

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