Judge Mae D'Agostino
Xiotech Corporation filed suit against defendants for damages as a result of breach of contract, fraud and unjust enrichment. Xiotech was a seller of computer equipment and pursuant to eight purchase orders from defendants, Xiotech had delivered $552,822 worth of goods. The undisputed amount still due to Xiotech was $551,167. Defendants failed to respond to Xiotech's requests for payments, and subsequently defendants' director, officer, and shareholder told Xiotech that defendants were insolvent and were ceasing business. Xiotech has now moved for a preliminary injunction. Based upon the record, the court found that Xiotech had demonstrated irreparable harm because it showed that defendants were in a "perilous financial state" and there was nothing in the record to suggest that defendants would be able to pay any future award, or that Xiotech would be able to collect on a judgment. The court also found that Xiotech demonstrated a likelihood of success on the merits since defendants did not dispute that a valid contract existed nor did they contend that they did not breach that agreement. Accordingly, Xiotech's motion for a preliminary injunction was granted.
