The Ryzman Foundation Inc. v. Muza

Background

The Ryzman Foundation Inc. filed an application for a temporary restraining order, an order requiring defendants to show cause why a preliminary injunction should not issue, and expedited discovery. The foundation alleged that defendants obtained a $7.5 million loan from it under false pretenses, wired the loan proceeds to a Bank of America account ending in 3581, and failed to make payments.

The foundation sought an asset-freeze order under Rule 65(b) of the Federal Rules of Civil Procedure and California’s Uniform Voidable Transactions Act. It asked the court to prevent defendants from disposing of the loan proceeds and to authorize expedited discovery so it could subpoena information about other places where the proceeds may have been transferred.

Court’s analysis

The court concluded that the application met the exception allowing a temporary restraining order without advance notice when specific facts show that immediate and irreparable harm may occur before the opposing party can be heard. The court relied on a declaration submitted with the application.

Applying the standard used for preliminary injunctions, the court found that the foundation had shown a likelihood of success on the merits, a likelihood of irreparable harm without temporary relief, that the balance of the equities favored the foundation, and that the relief served the public interest. The court therefore found that the foundation was entitled to a temporary restraining order.

The court also found that expedited discovery was justified because the foundation’s immediate need for the discovery outweighed the minimal prejudice to defendants. The court determined that no security bond was necessary because it found no realistic likelihood of harm to defendants from issuing the temporary order.

Order

The court granted the foundation’s application. It ordered defendants to show cause at a December 5, 2025 hearing why a preliminary injunction should not be entered. The order set deadlines for service, supplemental filings, opposition, and reply papers.

Until the hearing, defendants, their agents, employees, attorneys, and people acting with them were temporarily restrained and enjoined from charging, transferring, moving, using, pledging, or spending funds from the Bank of America account or any other location holding the loan proceeds. The foundation was authorized to conduct the requested expedited discovery. The order expires on December 9, 2025.