United States District Court, N.D. West Virginia
MEMORANDUM OPINION AND ORDER DENYING PLAINTIFF'S
REQUEST FOR PRELIMINARY INJUNCTION
FREDERICK P. STAMP, JR. UNITED STATES DISTRICT JUDGE.
civil action arises out of a verified request and complaint
for injunction. ECF 1-2 at 7. Pursuant to 28 U.S.C. §
1441 and § 1446, defendants Alecto Healthcare Services
Ohio Valley LLC, Alecto Healthcare Services Wheeling LLC, and
Alecto Healthcare Services Martins Ferry LLC
(“defendants, ” and collectively,
“Alecto”), removed this action from the Circuit
Court of Ohio County, West Virginia to the United States
District Court for the Northern District of West Virginia.
ECF No. 1.
then filed a motion to dismiss or, in the alternative, to
compel arbitration and stay this civil action pending
arbitration. ECF No. 2. Plaintiff filed a response in
opposition to defendants' motion and, pursuant to Rule
65(a) of the Federal Rules of Civil Procedure and Local Rule
of Civil Procedure 78.01, requested a hearing on
plaintiff's motion for a preliminary injunction and in
opposition to defendants' motion to dismiss. ECF No. 4.
Defendants filed a reply in opposition to plaintiff's
request for preliminary injunction. ECF No. 11.
this Court's order (ECF No. 12), a hearing was held on
the plaintiff's motion requesting a preliminary
injunction on January 4, 2018. At the hearing, the parties
acknowledged that the dispute over the contract arising out
of the Medical Transcription Services Agreement (“the
Agreement”) is subject to arbitration and that the
arbitration has already been initiated. During the hearing on
the motion for preliminary injunction, the parties elicited
witness testimony, and this Court admitted certain exhibits
into evidence. The parties then represented that they would
both request a copy of the hearing transcript and stated that
setting a deadline to submit a supplemental memorandum
regarding the plaintiff's motion for preliminary
injunction one week after receipt of the transcript was
as indicated at the conclusion of the hearing,
defendants' motion to dismiss (ECF No. 2) was denied and
defendants' motion to compel arbitration and stay pending
arbitration was granted. Per this Court's previous order
confirming the pronounced order of the Court during the
hearing (ECF No. 15), this civil action has been stayed
pending arbitration, with the exception of the Court's
consideration of, and ruling upon plaintiff's motion for
preliminary injunction. The parties were then each directed
to file a supplemental memorandum as to plaintiff's
motion for preliminary injunction. ECF No. 15.
filed a supplemental brief in opposition to plaintiff's
request for preliminary injunction (ECF No. 18) and plaintiff
filed a supplemental memorandum of law in support of request
for preliminary injunction (ECF No. 19).
plaintiff's motion for preliminary injunctive relief is
now fully briefed, has been argued by the parties at the
evidentiary hearing, and is ripe for decision. For the
reasons set forth below, this Court finds that Diskriter has
failed to make a ‘clear showing' that it is
entitled to such relief under the four factor test and that
Diskriter's motion for preliminary injunctive relief
should be denied.
Diskriter filed this action in the Circuit Court of Ohio
County, West Virginia, requesting the court enter a
preliminary injunction and then permanent injunction
enjoining the defendants Alecto Healthcare Services Ohio
Valley LLC, Alecto Healthcare Services Wheeling LLC and
Alecto Healthcare Services Martins Ferry LLC from utilizing
the transcription services of any other person or entity
during the term of the Agreement. ECF No. 1-2 at 9.
removed this action to the United States District Court for
the Northern District of West Virginia. ECF No. 1.
then filed a motion to dismiss plaintiff's complaint or,
in the alternative, to compel arbitration and stay pending
arbitration. ECF No. 2. The defendants assert the Court must
dismiss plaintiff's complaint, contending that all issues
contained in the complaint are arbitrable under the
Agreement. Alternatively, the defendants assert the Court
should compel plaintiff to submit this matter to arbitration
and stay the proceeding pending arbitration.
Diskriter filed a response (ECF No. 4) to the defendants'
motion to dismiss or, in the alternative, to compel
arbitration and stay pending arbitration, and requested a
hearing on the motion for a preliminary injunction. Plaintiff
clarifies in its response, “[b]y the express terms of
the Complaint, Plaintiff advises that the merits of its claim
for breach of contract are to be resolved at
arbitration” and that “[t]he present action
involves one issue, the request for this Court to issue first
a preliminary injunction followed by a permanent one while
the arbitration process is pending.” ECF No. 4 at 2.
Plaintiff seeks an injunction pursuant to Federal Rule of
Civil Procedure Rule 65 “to protect the status quo and
avoid plaintiff from incurring irreparable harm, primarily
related to the termination of twenty-seven (27) full-time
employees and loss of revenue and capital investment in the
performance of the Agreement, while the arbitration process
is pending.” ECF No. 4 at 3. Plaintiff asserts,
“[t]he Complaint seeks not a resolution by this Court
as to whether Defendants violated the Agreement or owe any
damages, but an injunction requiring Defendants to perform
under the Agreement until the substantive breach and damages
can be addressed by the parties in Arbitration” and is
only asking “that this Court protect the status quo
during the arbitration process.” ECF No. 4 at 3.
filed a reply in opposition (ECF No. 11) to plaintiff's
request for preliminary injunction hearing and assert that
plaintiff is not entitled to the extraordinary relief it
seeks because plaintiff is unable to prove that it is likely
to succeed on the merits, prove irreparable harm, prove that
the balance of equities tips in its favor, and unable to
prove that a preliminary injunction is in the public
interest. Defendants assert that the Court should deny
plaintiff's request for preliminary injunction and permit