Opinion ID: 564786
Heading Depth: 2
Heading Rank: 3

Heading: preliminary injunction against rtc in its corporate capacity

Text: 104 The final task left to us is to address RTC's argument that the district court's order against it in its corporate capacity must be reversed. As we stated above, RTC concedes the inapplicability to it of both the jurisdictional bar and Sec. 1821(j) because those provisions do not address RTC in its corporate capacity. Thus, we turn to RTC's arguments as to the merits of the preliminary injunction. 105 We reiterate that the district court's injunction granted both monetary and nonmonetary relief against RTC in its corporate capacity. RTC argues that the injunction was improperly granted because plaintiffs did not establish irreparable harm, one of the elements necessary to obtain preliminary injunctive relief. We shall first address RTC's contention in the context of the monetary relief granted against RTC in its corporate capacity. 106 The primary instance of irreparable harm asserted by plaintiffs, and on which the district court relied, was plaintiffs' need for injunctive relief to preserve any damage judgment they might obtain. See Hoxworth v. Blinder, Robinson & Co., 903 F.2d 186, 205 (3d Cir.1990); see also Fechter v. HMW Indus., Inc., 879 F.2d 1111, 1121 (3d Cir.1989) (preliminary injunction necessary to preserve status quo in light of employer's distribution of assets following termination of ERISA plan). Assuming that RTC in its corporate capacity could be subject to a money judgment, no showing has been made by plaintiffs that it would be unable to satisfy such a judgment. Thus, plaintiffs have failed to show irreparable harm. 107 Plaintiffs argue that a finding of irreparable harm is unnecessary in light of ERISA's express recognition of statutory remedies. Plaintiffs rely on Government of Virgin Islands, Dept. of Conservation & Cultural Affairs v. Virgin Islands Pavings, Inc., 714 F.2d 283, 286 (3d Cir.1983), where this court remanded to permit the district court to grant preliminary injunctive relief without a showing of irreparable harm. That case involved a suit by the Virgin Islands to enjoin certain land uses allegedly in violation of Virgin Islands environmental laws. That case suggests that the necessity of irreparable harm in light of a statute granting courts the power to issue preliminary injunctions varies with the particular statute involved and the relief requested. While ERISA unquestionably grants courts the power to issue preliminary injunctions, nothing in ERISA indicates that, where monetary relief is requested, the traditional requirement of irreparable harm need not be shown. We agree with the Seventh Circuit that to obtain monetary relief on a preliminary injunction, a private litigant must establish irreparable harm. See Gould v. Lambert Excavating, Inc., 870 F.2d 1214, 1221 (7th Cir.1989); cf. Fechter, 879 F.2d at 1119-21 (plaintiffs successfully established irreparable harm in ERISA action). We have already determined that plaintiffs failed to establish irreparable harm against RTC in its corporate capacity, and thus conclude that the district court, in granting monetary preliminary injunctive relief against RTC in its corporate capacity, did not exercise sound discretion. 108 We now turn to the nonmonetary injunctive relief granted against RTC in its corporate capacity, which prohibited termination of the plan. We need not consider whether plaintiffs were required under ERISA to make a showing of irreparable harm to obtain this relief, because we find legal error in the granting of the injunction in this respect. See Apple Computer, Inc. v. Franklin Computer Corp., 714 F.2d 1240, 1242 (3d Cir.1983), cert. dismissed, 464 U.S. 1033, 104 S.Ct. 690, 79 L.Ed.2d 158 (1984). 109 RTC argues that the order prohibiting termination is overbroad because both the plan and ERISA give plan sponsors authority to seek plan termination. PBGC agrees with RTC. Plaintiffs argue that RTC failed to raise its overbreadth argument in the district court. RTC responds that it objected to the entire order before the district court. We are persuaded to address this contention in light of RTC's broad objections before the district court. 110 Plaintiffs urge this court to read the district court's order to restrain only retroactive termination. We cannot so read the order. Rather, it broadly prohibits any steps to terminate. There is no basis in law for such an order. As PBGC states, ERISA permits the administrator of a plan to initiate termination pro[c]eedings in accordance with Title IV's procedures. See, e.g., 29 U.S.C. Sec. 1341. Further, the plan at section 15.1 states that the Board of Directors reserves the right at any time to ... terminate the Plan.... Nothing in the district court's analysis supports an order barring termination of the plan in compliance with ERISA. More than being overbroad, the order simply has no legal foundation. Where a preliminary injunction has been issued or denied based on an erroneous view of the law, it is the obligation of this court to reverse it. See Apple Computer, 714 F.2d at 1242. Therefore, because there was no foundation in ERISA for the district court's order barring termination, we must reverse the district court's order against RTC in its corporate capacity for nonmonetary relief. 22 Because of our conclusion, we need not address RTC's other arguments for reversal.