Professional Modular Surface, Inc. v. Uniroyal, Inc.

This is an interlocutory appeal from the entry of a preliminary injunction by the trial court restraining payment under letters of credit. On appeal defendant Uniroyal (Uniroyal) presents this issue for review, that the trial court erred and abused its discretion in restraining the payment of an unconditional letter of credit on the basis of an alleged breach of an underlying contract. Plaintiff (PMS) raises the additional issue of whether Uniroyal elected to be relieved of its obligations under its agreement with PMS. We reverse. The pertinent facts follow.

PMS and Uniroyal memorialized a…