Hampton Island Founders v. Liberty Capital

Thompson, Justice.

The primary question for decision in this appeal is whether the trial court abused its discretion in granting a temporary injunction which prohibited plaintiff from engaging in “any act which would have the effect” of contesting the voting rights of investors in plaintiffs member entities, when those investors wanted to use their votes to gain control of plaintiff and dismiss this lawsuit. Under the facts of this case, we answer this question affirmatively.

Wade Shealy arranged to purchase and develop land for a residential retreat on Hampton Island. To accomplish his goals,…