CCSAC, Inc. v. Pacific Banking Corp

Background

The court had previously issued an emergency temporary restraining order for CCSAC, Inc. and CANN Distributors, Inc. against Pacific Banking Corp. (referred to as “PBC”), Justin Costello, and GRN Funds, LLC. The plaintiffs then filed a motion for a preliminary injunction as directed by that earlier order. The court found that the plaintiffs had made reasonable efforts to serve the defendants, including what appeared to be successful email service on some of them. No defendant appeared or opposed the motion.

Ruling

The court granted the preliminary injunction on exactly the same terms as the temporary restraining order. The court stated that the injunction was intended solely to preserve the status quo while the case was pending.

After receiving actual notice of the order through personal service or another method, the defendants and their officers, agents, employees, attorneys, and people acting together with them were prohibited from:

1. Using, drawing down, transferring, or otherwise reducing funds deposited with PBC by CCSAC, Inc. or CANN Distributors, Inc. without the plaintiffs’ express consent; and 2. Deleting, destroying, editing, or otherwise altering records related to the plaintiffs’ deposits, including transaction and deposit-balance records.

Bond and Service

The court ruled that the plaintiffs did not need to post a bond under Federal Rule of Civil Procedure 65(c), given the nature of the case and the relief ordered. The plaintiffs were directed to attempt personal and corporate service, as well as email service, at all known addresses for the defendants. The defendants may seek reconsideration of the injunction for good cause if and when they appear in the case.