Appalachian Transp. Group, Inc. v. Parks

This is an appeal from the issuance of a temporary injunction. We reverse and remand.

On July 25, 1997, Appalachian Transportation Group, Inc. ("Appalachian"), a Tennessee corporation, entered a "Prompt Payment Guarantee Agreement" with Q Capital, a New Jersey corporation. The agreement provided that Appalachian would assign its accounts receivable to Q Capital, for which Q Capital would pay Appalachian approximately 96% of the amount due on each account. This practice, known as "factoring," provided Appalachian with immediate cash.

On September 1, 1997, Parks Son Excavating, Inc. ("Parks…