NUTRASWEET CO. V. VIT-MAR ENTERPRISES, INC. 176 F.3d 151 (3rd Cir. 1999) CASE BRIEF

NUTRASWEET CO. V. VIT-MAR ENTERPRISES, INC.

176 F.3d 151 (3rd Cir. 1999)

NATURE OF THE CASE: Intervenor appealed from a decision of the United States District Court for the District of New York that granted plaintiff a preliminary injunction and writ of replevin in a case involving the possession of goods that were allegedly obtained by fraud.

FACTS: This was a second shot at an appeal. See NutraSweet Co. v. Vit-Mar Enters., Inc., 112 F.3d 689 (3d Cir. 1997) in Rom Law for the facts of this case. In summary: P filed a complaint and an Order to Show Cause in federal district court, seeking a writ of replevin and temporary restraining order (TRO) against the goods it sold for consumption overseas that had refound their way back to the U.S. P argued that the goods were obtained by fraud and that it was likely to succeed in recovering title to the goods. The District Court granted P's request for a TRO and writ of replevin. After NutraSweet posted a $329,000 bond, the U.S. Marshals seized the Equal. Tek (D) learned that the goods had been seized, and intervened in this case to challenge the TRO. The District Court refused to lift the TRO. We instructed the District Court to vacate the TRO as to D because it had the effect of a preliminary injunction but had been entered without development of a preliminary injunction record and findings of fact. The District Court vacated the TRO, but entertained argument concerning the propriety of a preliminary injunction. The District Court entered a preliminary injunction, prohibiting D, its agents, and those acting in concert with D from 'taking possession, control, or custody and/or marketing, selling, or otherwise distributing the shipments of Equal.' The Court increased the bond for P to $658,000. D appealed.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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