Grupo Mexicano de Desarrollo v. Alliance Bond Fund
United States Supreme Court
527 U.S. 308 (1999)
Alliance Bond Fund and other investment funds (Alliance) (plaintiff) bought unsecured notes worth $75 million from Mexican company Grupo Mexicano de Desarrollo (GMD) (defendant). After GMD suffered financial problems and failed to make interest payments, Alliance sued in the United States District Court for the Southern District of New York with GMD’s consent. Alliance asked for a preliminary injunction that would bar GMD from transferring assets or favoring other creditors. Because Alliance demonstrated that winning on the merits was “almost certain” and that “irreparable harm” would likely occur without an injunction and Alliance posted a $50,000 bond, the district court granted the injunction. The United States Court of Appeals for the Second Circuit upheld the injunction, and the United States Supreme Court then granted certiorari.
Rule of Law
Holding and Reasoning (Scalia, J.)
Dissent (Ginsburg, J.)