A collections TRO

Some collections matters require a TRO.

We were called by the general counsel of a large, publicly-traded company that had a substantial receivable in Dallas against a nursing home. The client’s customer service representative learned from the nursing home’s employees that the owner was planning to transfer the business to another company they owned in an attempt to avoid its creditors.

When the General Counsel called she was worried that there was nothing to be done to stop the nursing home from dissipating assets and defrauding its creditors.

We immediately filed suit and asked the court for a TRO stopping the transfer from going forward. The court granted the TRO and we proceeded to the temporary injunction hearing.

In the meantime, we found where they had created new companies and found witnesses that corroborated everything we had heard from the client’s customer service representative.

Armed with this evidence we headed to the temporary injunction hearing. Before the hearing was to begin we met with the lawyers for the nursing home and a dialogue for settlement began. As a result, the court agreed to delay the hearing for an hour.

Eventually, before the temporary injunction hearing was commenced, the client settled on terms they found favorable.

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