Following my win in N.Y. State court, Qenta was able to have the case remanded to Federal Court based on diversity of citizenship. Qenta then asked the Federal Judge to overrule the state court judge and deny the TRO. However, the Federal Judge agreed with the State Court judge and affirmed her decision to impose a TRO as the bank was likely to prevail on the merits in arbitration.
Judge P. Kevin Castel’s order explains why the state-court TRO was not irregular: it was supported by a substantial evidentiary record and served the classic purpose of injunctions in aid of arbitration—maintaining the status quo so arbitrators can render an effective award. The order highlights exactly what matters: the claimed failure to obtain required regulatory approvals, the risk of irreparable injury from dissipation of assets, and equities favoring restraint. It also underscores that interim relief is not a merits decision, but a safeguard against a fait accompli.