Law School Case Brief
Levin v. Metro-Goldwyn-Mayer, Inc. - 264 F. Supp. 797 (S.D.N.Y. 1967)
The court will not issue an injunction where plaintiffs have failed to establish their right to the relief sought and there has been no showing of irreparable harm.
Plaintiff stockholders filed an application for a preliminary injunction against defendant corporation and directors as part of an action claiming improper solicitation of proxies for the corporation's annual meeting. Plaintiff stockholders and defendant directors were engaged in a contest for control of defendant corporation, a motion picture producer and distributor. Plaintiffs' motion for a preliminary injunction to enjoin defendants from their current proxy solicitation methods, including having corporate employees and branch managers solicit proxies, the solicitation of proxies for defendants by an independent supporter of management, and the endorsements by actors, directors, writers and exhibitors in paid advertisements of defendants.
Should the directors of a company be enjoined when they allegedly used company resources to solicit proxies for an upcoming vote for directors?
The court denied plaintiffs' motion, holding that the solicitation methods were not prohibited by law and that the plaintiffs had failed to show irreparable harm would result if the actions of defendants were not enjoined.
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