Prudential Real Estate Affiliates, Inc. v. PPR Realty, Inc.

Kathy McKenna appeals the district court’s orders granting a preliminary injunction against transfer of disputed stock in PPR Realty, Inc., and its affiliated companies (collectively, “PPR”), and denying her motion to dissolve the injunction. We conclude that the district court did not abuse its discretion by entering the injunction, and that the district court correctly concluded that it lacked jurisdiction to dissolve the injunction while an appeal of the order granting the injunction was pending.

I

PPR is a closely held real estate brokerage and related services concern with multiple offices in and around Pittsburgh, Pennsylvania. PPR is a franchisee of Prudential Real Estate Affiliates, Inc. (“PREA”), a national franchisor of real estate brokerages. In late September 1995, Kathy McKenna, a PPR employee who had acquired 10% of PPR Realty and 5% of its affiliated companies, offered to purchase for $460,000 the shares of Herman and Howard Engelberg, who together held nearly 40% of PPR’s shares. The Engelbergs notified the managing shareholders, Ron Croushore and Helen Sosso, of McKenna’s offer to purchase the stock, and communicated their acceptance of McKenna’s offer to…