This nice opinion, a case of first impression that has the taste not to boast of it, concerns an interesting issue regarding injunctive relief.

Plaintiff and Defendant are rival Nogales produce importers. Plaintiff was in litigation in Mexico with a certain Mexican grower about whether it had a contract to distribute the grower’s produce; Plaintiff said it did, the grower said it didn’t. When the grower hired Defendant Plaintiff brought this case for intereference with contract and unjust enrichment, seeking damages and injunctive relief. It applied for a TRO and a hearing on a preliminary injunction. Defendant then moved to stay the case, apparently until the Mexican litigation was resolved. The trial court granted the stay without ruling on the injunctive issues. Plaintiff filed a special action, which the Court of Appeals declined. So Plaintiff filed an appeal.

12-2101(A)(5)(b) permits appeal from an order “refusing to grant . . . an injunction.” Plaintiff argued that by not ruling on the injunction the trial court refused it. Defendant argued that the court didn’t refuse it but instead merely deferred it until after the stay. There is no Arizona authority on point. Because preliminary injunctions are to provide speedy relief from irreparable injury, the court concludes that by indefinitely postponing it the trial court had effectively denied it. Cases from other jurisdictions are to the same effect.

On the merits the court holds that granting a stay to avoid ruling on a preliminary injunction is an abuse of discretion. The factors considered in ruling on the two are different. Using one to dispose of the other employs the wrong legal standard.

A good opinion but one that should never have existed. We have no idea whether Plaintiff deserves a preliminary injunction. But how can a trial court believe that a party’s request for relief could be dealt with by not ruling on it? There is a reason why there was no Arizona authority, and why these cases are few and far between elsewhere. And it isn’t because defendants don’t ever try to stay a case to avoid an injunction.

(Opinion: Apache Importers v. Malena Produce)