Youlin Wang v. Forensic Professional Group USA, Inc.

Background

Youlin Wang asked the court for a temporary restraining order and an order requiring the respondents to explain why the court should not issue a preliminary injunction. The requested emergency relief concerned an arbitration in Florida involving Wang, Richard Kahn, Forensic Professionals Group USA, Inc., and Derek Longstaff.

According to Wang, he retained Longstaff through an authorized agent to provide legal services related to tax refunds from two property sales. Wang alleged that Longstaff and Kahn and Forensic Professionals Group USA, Inc. entered into a scheme involving an illegal tax-deferral vehicle, obtained a fraudulent power of attorney, and sought contingent fees connected to Wang’s tax refunds. Wang also alleged that, after Longstaff was terminated as his counsel, Longstaff forged another power of attorney and continued to claim authority to act for Wang in the arbitration.

The arbitration began with claims by Kahn and Forensic Professionals Group USA, Inc. against Longstaff concerning unpaid fees. An amended arbitration claim later asserted tortious-interference and libel claims against Wang and sought $10 million in damages. Wang alleged that he was not informed of the proceedings until mid-September 2020. On November 6, 2020, the arbitrator held a telephone conference, during which Wang’s counsel made a limited appearance to raise objections. The arbitrator demanded a general appearance and warned that sanctions could result from delay.

Legal standard

The court explained that the standard for a temporary restraining order is the same as the standard for a preliminary injunction. A person seeking that relief must show that he is likely to succeed on the merits, likely to suffer irreparable harm without the relief, that the balance of hardships favors him, and that an injunction would serve the public interest. The court described this as an extraordinary remedy requiring a clear showing by the person seeking it.

Court’s reasoning

The court focused on Wang’s claimed irreparable harms: possible sanctions from the arbitrator, Longstaff’s possible actions on Wang’s behalf, and harm to Wang’s ability to defend himself if he were forced to participate in ongoing arbitration discovery.

The court held that Wang failed to establish irreparable harm. It reasoned that each identified injury could be compensated with money damages if Wang ultimately prevailed. The court also found that Wang’s delay undermined his claim of urgency: although he learned of the arbitration in mid-September, he did not file the petition until November 13, 2020, and filed the temporary-restraining-order motion on November 20, 2020.

The court additionally stated that it had serious doubts about the merits of Wang’s claims. It did not decide any later motion without hearing from the respondents. Because Wang had not filed proofs of service, the court ordered him to file proof of service of the petition, temporary-restraining-order motion, and order on the respondents by November 25, 2020.

Disposition

The court denied Wang’s motion for a temporary restraining order and order to show cause concerning a preliminary injunction. The opinion does not state that the underlying petition was dismissed or otherwise finally resolved.