Also known as:special reliefs · extraordinary relief
Written by attorneys · grounded in primary & secondary sources — see below
An equitable power authorizing a court to grant extraordinary relief in the form of a temporary restraining order or preliminary injunction to prevent irreparable harm. The power exists even when a statutory discovery stay is in place during investigation by a special litigation committee in a derivative proceeding.
Sources & Authorities· 2 primary sources
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Uniform Acts
Dictionaries
How it applies
Common Examples
6
Committee Seeks TRO to Halt Sale
Solomon Silver, a limited partner in Pinecrest Apartments LP, files a derivative suit alleging that the general partner arranged a below-market sale to an affiliate. The partnership appoints an independent special litigation committee and discovery is stayed. The committee moves for a temporary restraining order to prevent closing on the building. The court grants the order to preserve the asset while the committee completes its review.
Member Seeks Injunction During Stay
Maria Lopez, a member of a limited liability company, files a derivative suit alleging improper distributions by managers. The company appoints a special litigation committee and discovery is stayed. Maria moves for a preliminary injunction to halt further distributions. The court grants the order under its authority to award extraordinary relief despite the stay.
David Kim, a limited partner, sues derivatively over an unauthorized asset transfer. A special litigation committee is formed and discovery stays. David seeks a temporary restraining order to freeze the transferred asset. The court issues the order to prevent irreparable harm while the committee investigates.
Limited Partner Moves to Block Merger
Elena Vargas, a limited partner in a real-estate partnership, brings a derivative claim challenging a conflicted merger. The partnership forms a special litigation committee and invokes the discovery stay. Elena requests a preliminary injunction against the merger closing. The court grants special relief to maintain the status quo during the investigation.
Member Seeks Halt to Self-Dealing Transfers
Omar Haddad, a member of an LLC, files derivatively alleging managers diverted funds to affiliates. After appointment of a special litigation committee and entry of the discovery stay, Omar moves for a temporary restraining order. The court awards the injunction to protect company assets pending the committee's report.
Partner Requests Injunction on Related-Party Deal
Priya Patel, a limited partner, alleges in a derivative action that the general partner is selling partnership property to a controlled entity at an undervalue. A special litigation committee is appointed and discovery is stayed. Priya seeks a preliminary injunction blocking the sale. The court grants the order under the preserved equitable power.
Common questions
Frequently Asked
1
Does appointment of a special litigation committee prevent a court from granting a temporary restraining order?+
No. The statute expressly preserves the court's authority to grant temporary restraining orders or preliminary injunctions even while discovery is stayed for the committee's investigation. The stay protects the committee from intrusive discovery but does not eliminate the court's power to prevent irreparable harm to the entity.
Supporting sources
477 U.S. 399 (1986)Criminal Law
…1979), and this Court denied certiorari. 445 U. S. 972 (1980). Petitioner then joined 122 other death row inmates in seeking extraordinary relief from the Florida Supreme Court, based on that court's allegedly improper procedure for review of capital cases. This petition for relief was denied, Brown v. Wainwright , 392 So. 2d 1327…