In re Milton Hershey Sch. Tr. (Appeal of Milton Hershey Sch.), - 807 A.2d 324 (Pa. Commw. Ct. 2002)

Rule:

The prerequisites for a preliminary injunction are 1) that the injunction is necessary to prevent immediate and irreparable harm that could not be compensated by damages; 2) that greater injury would result by refusing the injunction than by granting it; 3) that the injunction restores the parties to the status quo that existed immediately before the alleged wrong; 4) that the wrong is manifest and the injunction is reasonably suited to abate it; and 5) the applicant's right to relief is clear. To establish a clear right to relief, the applicant must show that it is likely to succeed on the merits. An appellate court's review of a trial court's grant of a preliminary injunction is to determine whether there were any reasonable grounds for the trial court's action, and the appellate court will reverse only if no such grounds exist.

Facts:

Since 1918, appellants Hershey Trust Company and Milton Hershey School’s (collectively, Trust) corpus has consisted primarily of a controlling interest in Hershey Foods, previously known as the Hershey Chocolate Company. Appellant has recently proposed selling its controlling interest in Hershey Foods in an effort to diversify its assets. The Attorney General filed a petition for citation and request for a special injunction pursuant to his office's parens patriae powers. After the hearing, the orphan's court granted the preliminary or special injunction. The preliminary or special injunction prohibited the appellant from entering into any agreement or understanding that would or could commit the appellant to a sale or other disposition of any or all shares of Hershey Foods Corporation held as the corpus of the Milton Hershey School Trust pending the orphan's court's disposition of the attorney general's petition for citation for the rule to show cause why a proposed sale of the appellants’ controlling interest in Hershey Foods should not be conditioned upon court approval. Appellants appealed before this Court, seeking a suspension of the injunction pending appeal. The Orphan's Court denied a request for suspension filed simultaneously in that court. Subsequently, the appellant filed an emergency application for an expedited ruling on the merits of the orphan's court's preliminary injunction.

Issue:

Should the appellants’ application for an expedited ruling on the merits of the orphan's court's preliminary injunction be granted?

Answer:

Yes.

Conclusion:

The appellate court granted the appellants’ application for an expedited ruling on the merits of the appeal of the preliminary injunction. The court held that it had all of the necessary information and argument necessary to determine the merits of the appeal. The appellate court concluded that apparently reasonable grounds existed to support the trial court's order as one that restored the status quo, and prevented the immediate and irreparable harm that would result if the trust proceeded with a sale of its controlling interest in the corporation before the issues raised by the parties were resolved, and prevented a greater injury than what might result if the injunction were denied. Thus, the trial court's order was affirmed. Accordingly, the appellants' application for a stay of the trial court's order was dismissed as moot. And the court directed the trial court to rule on the merits of the controversy within 30 days of the entry of the appellate court's order.