Sideman & Bancroft Assists Samsung in Obtaining Five Month TRO Freezing Foreign Defendants’ US-Based Bank AccountsFebruary 2014
On January 27, 2014, Southern District of California Judge Roger T. Benitez granted a request by Samsung Electronics Co., Ltd and a subsidiary, represented by Sideman & Bancroft attorneys Richard J. Nelson and Peter M. Colosi, to delay a preliminary injunction hearing and extend an existing temporary restraining order (TRO) past the 28-day maximum allowed under the Federal Rules. The TRO freezes the PayPal assets of two Chinese companies alleged to have sold counterfeit Samsung phone accessories. Samsung argued successfully that as the two defendants were foreign corporations, service of the complaint and related preliminary-injunction papers could not be effected pursuant to the Hague Convention until well after Rule 65’s 28-day limit, thus requiring the extension of the existing TRO. The Court agreed with Samsung and held that Samsung had showed: (1) success on the merits of its trademark claims was likely; (2) irreparable harm was likely absent preliminary injunctive relief; (3) a balancing of the harms favored the maintenance of the TRO; and (4) the TRO was in the public’s interest.
The case is No. 13-CV-3105-BEN (DHB).