FRANK D. WHITNEY, District Judge.
THIS MATTER is before the Court upon Plaintiffs' Second Motion for a Preliminary Injunction (Doc. No. 63) and Plaintiffs' Motion for a Temporary Restraining Order (Doc. No. 72). In both motions, Plaintiffs request the Court to order Defendants Beacon Independent Living, LLC, Bruce Bleinman, and Antoine Lassiter (collectively, "Beacon Defendants") to cease and desist from managing the Facility and order that the Beacon Defendants and their personnel vacate the Facility. In addition, Plaintiffs' Motion for a Temporary Restraining Order also requests the Court order Defendant Beacon not distribute any funds without court approval for next fourteen days. Defendants have not yet responded to either motion, and the time for doing so has not expired. Nevertheless, the Court finds Plaintiffs' pleadings sufficient to issue a ruling on both motions, and for the reasons that follow, the Court DENIES both motions.
At the outset, the Court notes the high standard required to issue an injunction. As the Supreme Court recently noted, "An injunction is an exercise of a court's equitable authority, to be ordered only after taking into account all of the circumstances that bear on the need for prospective relief. Equitable relief is not granted as a matter of course, and a court should be particularly cautious when contemplating relief that implicates public interests."
The Court has already ruled on a previous motion for a preliminary injunction that Plaintiff Rudolph-Raad, Inc., owns the property where Defendants currently operate the Facility. (Doc. No. 45, p. 2). Plaintiffs' ownership is encumbered by two mortgages on the property. The Court further noted two important things that bear repeating here. First, the Court acknowledged that no evidence indicated that any licensing or regulating agency had recently found less than satisfactory conditions at the Facility. (Doc. No. 45, p. 3). The Court also concluded, "It is not in the public interest to disrupt the management of the Facility under these facts, particularly where occupants are veterans and persons with disabilities." (Doc. No. 45, p. 4). Keeping the public interest in mind, as the case law requires, the Court declined in the earlier order to require Defendants to cease and desist operation of the Facility. Plaintiffs now renew their request to remove Defendants from the property and present additional evidence supporting their motion.
The Court has reviewed the allegations in the pleadings, as well as the evidence and affidavits submitted in support of Plaintiffs' motions. The gravamen of Plaintiffs' Second Motion for a Preliminary Injunction is that the Beacon Defendants are "ill-equipped to manage the Facility" and are "endangering the lives of the Facility's residents." (Doc. No. 64, p. 7). The Motion for a Temporary Restraining Order relies on the Beacon Defendants' conduct of allowing an insurance policy on the property to lapse, as well as Beacon Defendants' failure to comply with Court orders requiring them to deposit $8,000 into an escrow account on the 25
Although the allegations are troubling, the Court is not convinced that such accusations rise to the level warranting injunctive relief at this point. Most problematic for Plaintiffs is the fact that much of the allegations involve speculation and possible outcomes without concrete evidence to support such statements. While the evidence could plausibly suggest past misconduct on part of the Beacon Defendants, neither the depositions nor affidavits contain personal knowledge sufficient to forecast gross misconduct by the Beacon Defendants.
As to the insurance policy issue, although it could prove detrimental for the Facility to be uninsured, it is not within the province of this Court to instruct Defendants how to conduct their business and where to assume (or not assume) risks.
Additionally, it appears that Plaintiffs, and possibly Rudolph Wood Holding Company, have an ownership interest in the property. Plaintiffs have not shown that they cannot procure insurance on the property absent injunctive relief.
In denying the preliminary injunction and temporary restraining order, the Court notes that its ruling should have no impact on Plaintiffs' ability to report to the agencies monitoring the Beacon Defendants and their operation of the Facility.
Finally, the Court is troubled by the fact the Beacon Defendants have failed to comply with the Court's order to deposit $8,000 on the 25
IT IS THEREFORE ORDERED that Plaintiffs' Second Motion for a Preliminary Injunction (Doc. No. 63) is DENIED and Plaintiffs' Motion for a Temporary Restraining Order (Doc. No. 72) is DENIED. The Beacon Defendants shall comply with the Show Cause order contained herein no later than Tuesday, April 10, 2012.
IT IS SO ORDERED.