Pella Products, Inc. et al v. Pella Corporation

Filing 25

ORDER (memorandum filed previously as separate docket entry). (1) The Petition for Preliminary Injunction filed by Plaintiffs Pella Products, Inc. (PPI), National Building Products, Inc. (NBPI), Fenster Enterprises, Inc. (Fenster), and Hubert Kriegh is GRANTED in part and DENIED in part.(2) The Petition is GRANTED as follows:(A) Defendant Pella Corporation, together with its representatives, agents,servants, and all others acting on its behalf or in concert with it, are hereby ENJOINED and RESTR AINED, until the earlier of a further Order of Court or the expiration of the Sales Branch Agreements pursuant to their normal termination provision, from: (i) Enforcing the May 10, 2018 Notice of Immediate Terminations sent to PPI, NBPI, and Fenster with respect to the Sales Branch Agreements ONLY; and (ii) Terminating the Sales Branch Agreements with PPI, NBPI, and Fenster.(B) This injunction issues because: (i) Plaintiffs have a reasonable probability of eventual success on the merits of thei r breach of contract claim relating to Pellas immediate termination of the Sales Branch Agreements;(ii) Plaintiffs are more likely than not to suffer irreparable harm in theabsence of preliminary relief enjoining the termination of the SalesBranch Ag reements; and (iii) The likelihood of success on the merits, irreparable harm, the possibility of harm to other interested persons, and the public interest taken together weigh in favor of granting preliminaryinjunctive relief.(3) Plaintiffs shall pr ovide security pursuant to Federal Rule of Civil Procedure 65(c) in the amount of $1,000,000.00 within five (5) days from the date of entry of this Order, failing such this injunction shall dissolve.(4) The Petition is DENIED as to Plaintiffs cl aim to enjoin Pellas immediatetermination of the Windows Made Easy Sales Branch Agreements.(5) The Special Injunction issued by the Luzerne County Court of Common Pleason May 11, 2018 is DISSOLVED as of the date of entry of this Order.Signed by Honorable A. Richard Caputo on 6/7/18. (dw)

IN THE UNITED STATES DISTRICT COURT
FOR THE MIDDLE DISTRICT OF PENNSYLVANIA
PELLA PRODUCTS, INC.,
NATIONAL BUILDING
PRODUCTS, INC., FENSTER
ENTERPRISES, INC., and HUBERT
KRIEGH,

NO. 3:18-CV-01030
(JUDGE CAPUTO)

Plaintiffs,
v.
PELLA CORPORATION,
Defendant.
ORDER
NOW, this 7th day of June, 2018, IT IS HEREBY ORDERED that:
(1)

The Petition for Preliminary Injunction (Doc. 2) filed by Plaintiffs Pella
Products, Inc. (“PPI”), National Building Products, Inc. (“NBPI”), Fenster
Enterprises, Inc. (“Fenster”), and Hubert Kriegh is GRANTED in part and
DENIED in part.

(2)

The Petition is GRANTED as follows:
(A)

Defendant Pella Corporation, together with its representatives, agents,
servants, and all others acting on its behalf or in concert with it, are
hereby ENJOINED and RESTRAINED, until the earlier of a further
Order of Court or the expiration of the Sales Branch Agreements pursuant
to their “normal” termination provision, from:
(i)

Enforcing the May 10, 2018 Notice of Immediate Terminations sent
to PPI, NBPI, and Fenster with respect to the Sales Branch
Agreements ONLY; and

(ii)

Terminating the Sales Branch Agreements with PPI, NBPI, and
Fenster.

(B)

This injunction issues because:
(i)

Plaintiffs have a reasonable probability of eventual success on the
merits of their breach of contract claim relating to Pella’s
immediate termination of the Sales Branch Agreements;

(ii)

Plaintiffs are more likely than not to suffer irreparable harm in the
absence of preliminary relief enjoining the termination of the Sales
Branch Agreements; and

(iii)

The likelihood of success on the merits, irreparable harm, the
possibility of harm to other interested persons, and the public
interest taken together weigh in favor of granting preliminary
injunctive relief.

(3)

Plaintiffs shall provide security pursuant to Federal Rule of Civil Procedure
65(c) in the amount of $1,000,000.00 within five (5) days from the date of entry
of this Order, failing such this injunction shall dissolve.

(4)

The Petition is DENIED as to Plaintiffs’ claim to enjoin Pella’s immediate
termination of the Windows Made Easy Sales Branch Agreements.

(5)

The Special Injunction issued by the Luzerne County Court of Common Pleas
on May 11, 2018 is DISSOLVED as of the date of entry of this Order.
/s/ A. Richard Caputo
A. Richard Caputo
United States District Judge

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