Dateline Exports, Inc. v. Basic Construction, Inc.

This is an appeal from the denial of a motion for a preliminary injunction to prevent the appellee, Basic Construction, Incorporated, from transferring assets outside the Commonwealth of the Northern Mariana Islands. The appellant, Dateline Exports, Incorporated, sought the injunction in order to secure its rights under a settlement agreement in which Basic agreed to pay Dateline in monthly installments, a total of $120,000, plus interest. The district court denied the motion because it found that Dateline failed to establish a threat of irreparable harm. We affirm, because the district court did not have authority to grant such injunctive relief to an unsecured creditor.

In the underlying litigation, Dateline sued Basic for payment of a debt for commercial goods. The settlement agreement incorporated a promissory note obligating Basic to pay Dateline $120,000 plus 9% interest per annum in monthly installments to be paid over a period of several years. The agreement allowed Dateline to accelerate maturity of the note if Basic either defaulted on any of its payments, made a general assignment to creditors, or filed for bankruptcy. The parties filed a Stipulation and Order with the…