Cersosimo, R. v. Keystone Group of Companies ( 2022 )


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  • J-S25034-22
    NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37
    RUSSELL CERSOSIMO, JR. AND                :   IN THE SUPERIOR COURT OF
    RUSSELL CERSOSIMO, SR.                    :        PENNSYLVANIA
    :
    :
    v.                           :
    :
    :
    KEYSTONE GROUP OF COMPANIES,              :
    LLC, KEYSTONE INTEGRATED CARE,            :
    LLC, AND THOMAS PERKO                     :
    :
    :
    APPEAL OF: KEYSTONE GROUP OF              :
    COMPANIES AND THOMAS PERKO                :        No. 1093 WDA 2021
    Appeal from the Order Entered August 10, 2021
    In the Court of Common Pleas of Allegheny County
    Civil Division at No(s): GD-20-008252
    BEFORE: BENDER, P.J.E., DUBOW, J., and KING, J.
    MEMORANDUM BY KING, J.:                     FILED: NOVEMBER 01, 2022
    Appellants, Keystone Group of Companies (“KGOC”) and Thomas Perko
    (“Perko”), appeal from the order entered in the Allegheny County Court of
    Common Pleas that granted the motion of Appellees, Russell Cersosimo, Jr.
    (“Russ Jr.”) and Russell Cersosimo, Sr. (“Russ, Sr.”), seeking a special
    injunction against KGOC and Perko, and imposing a constructive trust over
    funds received from Appellant Keystone Integrated Care, LLC (“KIC”). We
    affirm.
    In its opinion, the trial court set forth the factual and procedural history
    in this case as follows:
    In late September and early October 2016, [Russ Jr.] and
    J-S25034-22
    [Perko] founded [KIC and KGOC]. (Amended Complaint,
    filed 1/6/21, at 3). KIC’s sole member when founded was
    KGOC. KGOC’s sole member when founded was Frequency
    Management, LLC, a limited liability company owned equally
    by Russ Jr. and Perko. (Id.) Pursuant to the operating
    agreement, KIC began as a manager-managed limited
    liability company, with a two-member board of managers,
    and Russ Jr. and Perko acting as managers. (Id.) Russ Jr.
    and Perko founded KIC with the goal of KIC becoming a
    medical marijuana organization holding a dispensary permit
    and grower permit. In exchange for a $1.35 million capital
    infusion, KGOC ceded 27% of its ownership interest in KIC
    to the Series A investors. The two leaders of the Series A
    investor group were … Dr. J. William Bookwalter, III
    (“Bookwalter”), and Mr. Steven D’Achille (“D’Achille”). (Id.)
    On or about January 23, 2017, KIC adopted a Second
    Amended and Restated Operating Agreement. The Second
    Amended and Restated Operating Agreement continued to
    list Russ Jr. and Perko as the Managers of KIC and was
    approved in writing by Bookwalter and D’Achille. (Id. at 6).
    On or about March 24, 2017, KIC submitted its permit
    applications to the Pennsylvania Department of Health (“Pa.
    DOH”). (Id. at 7).
    Approximately seven years earlier, Russ Jr. had been
    charged with driving under the influence (DUI), Russ Jr.
    entered into the accelerated rehabilitative disposition
    program (“ARD”). Successful completion of ARD avoids a
    criminal conviction. However, the ARD remained a matter
    of public record and had not yet been expunged, even
    though Russ Jr. qualified for expungement. (Id.) It was
    discovered that certain key personnel associated with the
    applicant, KIC, would have to undergo criminal background
    checks.     (Id. at 8).    Permit applications were being
    evaluated and ranked by the Pa. DOH on a point system.
    Russ Jr.’s indirect ownership of KIC, through KGOC created
    a remote risk that could negatively impact the scoring of
    KIC’s permit applications. Russ Jr. decided to relinquish any
    direct or indirect membership interest in KGOC until such
    time as the Pa. DOH ruled on KIC’s permit applications. (Id.
    at 9). Russ Jr. notified Bookwalter and D’Achille that he was
    temporarily stepping aside and would return at a later date
    once the issue was resolved. Id. Appellants contest that
    Bookwalter and D’Achille were notified that Russ Jr.’s
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    relinquishment was temporary. (Answer and New Matter to
    Amended Complaint, filed 6/25/21, at 5). Appellees alleged
    that Perko and Russ Jr. agreed that, should the Pa. DOH
    grant KIC’s permit application, Perko would return Russ Jr’s
    half ownership interest in KGOC back to Russ Jr. (Amended
    Complaint at 10). Appellants deny that Perko agreed to
    relinquish half of his ownership back to Russ Jr. (Answer
    and New Matter at 5).
    On June 16, 2017, Russ Jr.’s DUI was expunged, and a
    criminal records check showed no criminal record for Russ
    Jr. (Amended Complaint at 11). On or about June 29, 2017,
    the Pa. DOH granted KIC’s dispensary permit application
    and awarded KIC a permit to own and operate three medical
    cannabis dispensaries in Western Pennsylvania, specifically
    in Greensburg, the Lawrenceville neighborhood of
    Pittsburgh, and Cranberry Township. (Id.)
    Appellees allege that on August 18, 2018, Russ Jr., Perko,
    and KGOC had executed an Agreement to Assign
    Membership Interests (“Assignment Agreement”), to
    formally reestablish Russ Jr.’s equity in KGOC. (Id. at 18).
    Appellants deny that the Assignment Agreement was a
    binding contract. (Answer and New Matter at 8). The
    Assignment Agreement also made the assignment of a 50%
    interest in KGOC to Russ Jr. contingent upon confirmation
    from the Commonwealth of Pennsylvania that such an
    ownership change within one of KIC’s members will not
    jeopardize or otherwise impair KIC’s permit. (Amended
    Complaint at 18). The Assignment Agreement further states
    if the Pa. DOH does not approve Russ Jr. as an affiliated
    person, then Perko would assign Russ Jr.’s 50% interest in
    KGOC to [Russ Sr.]. (Id.) Despite repeated demands, KIC
    has refused to submit to the Pa. DOH the form necessary to
    identify Russ Jr. as an individual affiliated with KIC. (Id. at
    19). Appellees allege that Bookwalter and D’Achille directed
    the preparation of a purported Third Amended and Restated
    Operating Agreement of KIC, with a purported effective date
    of April 30, 2019. Appellees allege that the purported Third
    Amended and Restated Operating Agreement was never
    approved by Perko, KGOC, or at a lawfully constituted
    meeting of the board of managers of KIC. (Id.) Appellees
    deny that the purported Third Amended and Restated
    Operating Agreement recites that on August 26, 2018, the
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    Members of KIC had voted on certain amendments to the
    Second Amended and Restated Operating Agreement and
    voted to amend and restate the Second Amended and
    Restated Operating Agreement in its entirety. (Id.) Section
    7.01 of the purported Third Amended and Restated
    Operating Agreement purports to prohibit an entity owning
    a membership interest in KIC from changing its ownership
    or governance structure. Appellees allege that this was an
    attempt to prevent Perko and KGOC from restoring any
    KGOC membership interests to Russ Jr. or Russ Sr. (Id. at
    20).
    By a letter dated September 20, 2019, Bookwalter, on
    behalf of KIC, notified Perko that KIC was dissociating KGOC
    (“the Dissociation Letter”). The Dissociation Letter states
    that the dissociation was occurring pursuant to § 8861 of
    the Pennsylvania Limited Liability Company Act and the
    purported Third Amended and Restated Operating
    Agreement of KIC. (Id. at 21). The Dissociation Letter
    asserts that the Act permits removal of the member where
    the company’s operating agreement would so require, and
    that KGOC engaged in wrongful acts constituting two
    separate events triggering dissociation under the Third
    Amended and Restated Operating Agreement. The first
    alleged act is that Perko used KIC funds to submit to the Pa.
    DOH an application for a medical marijuana grower permit
    without disclosing to the Pa. DOH that KIC and its investors
    were affiliated with the entity that filed the application.
    (Id.) Appellees deny this act. The second alleged act is that
    KGOC’s agreement with Russ Jr. to transfer a 50% interest
    in KGOC to him was never disclosed to the members of KIC
    or the Pa. DOH. (Id. at 22). Appellees claim that the
    agreement was disclosed to the members of KIC. Despite
    repeated demand by KGOC from the date of the Dissociation
    Letter to the present, KIC has not paid KGOC fair value for
    its membership interest and has frozen out KGOC of all
    matters related to KIC. (Id. at 23).
    (Trial Court Opinion, filed 3/24/22, at 2-6). Procedurally:
    On August 31, 2020, [Russ Jr. and Russ Sr.] filed their
    complaint against [KGOC, KIC, and Perko]. The complaint
    contains Five (5) counts. Count I: Breach of Contract
    against KGOC and Perko. (Amended Complaint at 23).
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    Count II: Interference with Contractual Relations against
    KIC. (Id. at 25). Count III: Pennsylvania Uniform Voidable
    Transactions Act (PUVTA) against all Appellants. (Id. at
    26). Count IV: Declaratory Judgment against all Appellants.
    (Id. at 29). Count V: Unjust Enrichment Russ Jr. against all
    Appellants. (Id. at 30). On August 6, 2021, Appellees filed
    a Motion for Special Relief. The Motion was for a special
    injunction against Appellants KGOC and Perko to impose a
    constructive trust over funds received from … KIC.[1] On
    August 10, 2021, after argument and an evidentia[ry]
    hearing, th[e c]ourt granted Appellees’ motion for a special
    injunction. On August 19, 2021, Appellants filed a Motion
    for Reconsideration which was denied on September 9,
    2021. On the same date Appellants appealed to the
    Superior Court of Pennsylvania concerning the Order
    entered on August 10, 2021. On December 9, 2021, [the
    c]ourt ordered Appellants to file a concise statement of
    errors complained of on appeal within twenty-one (21) days
    of the order pursuant to Pennsylvania Rule of Appellate
    Procedure 1925(b). Appellants timely filed their 1925(b)
    statement on December 23, 2021.
    (Id. at 1-2) (some record citations omitted).
    Appellants raise the following issues on appeal:
    Whether the Trial Court erred in granting [Appellees’]
    Motion for Special Injunction Against [Appellants KGOC and
    Perko] to Impose Constructive Trust Funds Received from
    [KIC] requiring that any funds or proceeds received be
    deposited into a court-supervised escrow account, when the
    record developed failed to satisfy all, if any, of the standards
    required for the imposition of an injunction.
    1. Did the Trial Court      err in its determination that
    Appellees would be          subject to immediate and
    irreparable harm if         the requested preliminary
    injunction were not          granted when there was
    insufficient concrete        evidence on the record
    ____________________________________________
    1In a separate case, Perko and KGOC entered into a settlement agreement
    with KIC which provided for more than $3 million to be paid from KIC to
    Perko/KGOC. (Motion for Special Injunction, filed 8/6/21, at 3).
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    supporting establishing the speculative claim that
    Appellants might hypothetically dissipate assets in the
    absence of an injunction imposing a constructive
    trust?
    2. Did the Trial Court err in its determination that
    Appellees could not be adequately compensated by an
    award of damages in the absence of an injunction?
    3. Did the Trial Court err by granting the injunction,
    causing substantial harm and greater injury to
    Perko/KGOC by preventing them from using those
    funds for ongoing and productive business and
    personal matters than it would have caused to
    Appellees by denying the injunction?
    4. Did the Trial Court err in its determination that
    Appellees’ right to relief is clear and Appellees are
    likely to prevail on the merits of the underlying matter
    when there are multiple legal insufficiencies in
    Appellees’ case as set forth in their Amended
    Complaint?
    5. Did the Trial Court err in ordering an injunction that
    applies to the entire amount of the settlement funds
    received by Perko/KGOC from KIC rather than half,
    corresponding to the 50% ownership in KGOC claimed
    by Appellees?
    (Appellants’ Brief at 5-6).
    Appellants challenge the trial court’s grant of a preliminary injunction,
    which we review for an abuse of discretion.       Morgan Trailer Mft. Co. v.
    Hydraroll, Ltd., 
    759 A.2d 926
    , 932 (Pa.Super. 2000).
    [I]n reviewing preliminary injunction orders, “an appellate
    court is to conduct a searching inquiry of the record.
    Accordingly, … the scope of review in preliminary injunction
    matters is plenary.” Warehime v. Warehime, 
    580 Pa. 201
    , 209 n.7, 
    860 A.2d 41
    , 46 n.7 (2004). With regard to
    the standard of review, appellate review of a trial court’s
    order granting or denying preliminary injunctive relief is
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    “highly deferential.” Summit Towne Centre, Inc. v. Shoe
    Show of Rocky Mount, Inc., 
    573 Pa. 637
    , 646, 
    828 A.2d 995
    , 1000 (2003).
    Hendricks v. Hendricks, 
    175 A.3d 323
    , 329-30 (Pa.Super. 2017) (footnote
    omitted).2
    Under this “highly deferential” standard of review, this Court must
    “examine the record to determine if there were any apparently reasonable
    grounds” for granting the preliminary injunction.      Duquesne Light Co. v.
    Longue Vue Club, 
    63 A.3d 270
    , 275 (Pa.Super. 2013). “Only if it is plain
    that no grounds exist to support the decree or that the rule of law relied upon
    was palpably erroneous or misapplied will we interfere with the decision of the
    [trial court].” Summit Towne Centre, Inc., 
    supra at 645-46
    , 
    828 A.2d at 1000
     (citation omitted; brackets in original).
    A court has apparently reasonable grounds to support the issuance of a
    preliminary injunction where it finds that the party seeking the injunction
    established the following six essential elements:
    1) that the injunction is necessary to prevent immediate and
    irreparable harm that cannot be adequately compensated
    by damages; 2) that greater injury would result from
    refusing an injunction than from granting it, and,
    concomitantly, that issuance of an injunction will not
    substantially harm other interested parties in the
    proceedings; 3) that a preliminary injunction will properly
    restore the parties to their status as it existed immediately
    prior to the alleged wrongful conduct; 4) that the activity it
    ____________________________________________
    2  “Because of the many similarities between preliminary and special
    injunctions, the two types tend to merge into one and the words are used
    interchangeably.” 
    Id.
     at 329 n.9 (citation omitted).
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    J-S25034-22
    seeks to restrain is actionable, that its right to relief is clear,
    and that the wrong is manifest, or, in other words, must
    show that it is likely to prevail on the merits; 5) that the
    injunction it seeks is reasonably suited to abate the
    offending activity; and, 6) that a preliminary injunction will
    not adversely affect the public interest.
    Hendricks, supra at 330 (quoting Warehime, 
    supra at 209-10
    , 
    860 A.2d at
    46–47).
    Appellants’ first two issues concern the first element; therefore, we
    discuss them together. First, Appellants claim that the court erred in finding
    that Appellees would be subject to immediate and irreparable harm if the
    injunction were not granted. Appellants claim that Appellees’ assertion, that
    they would be subject to irreparable harm because the funds were at risk of
    dissipation, does not amount to concrete evidence of actual damage.
    (Appellants’ Brief at 18-21). Second, Appellants argue that Appellees failed
    to show that they could not be adequately compensated by an award of
    damages if they did suffer irreparable harm. Appellants insists this case is
    about money damages and their remedy will be a monetary judgment if they
    are successful. (Id. at 25-26). We disagree.
    This Court has affirmed the grant of a preliminary injunction to prevent
    the dissipation of assets in anticipation of litigation, concluding that an
    injunction is necessary to prevent immediate and irreparable harm.             See
    Ambrogi v. Reber, 
    932 A.2d 969
    , 975 (Pa.Super. 2007), appeal denied, 
    597 Pa. 725
    , 
    952 A.2d 673
     (2008) (holding that Pennsylvania law does not
    preclude trial court from granting preliminary injunction to prevent dissipation
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    J-S25034-22
    of assets); Citizens Bank of Pennsylvania v. Myers, 
    872 A.2d 827
    , 836
    (Pa.Super. 2005) (listing cases).
    Instantly, the trial court found:
    … Appellees have produced sufficient evidence to show that
    they would suffer immediate and irreparable harm if the
    preliminary injunction was not granted. The facts, in this
    case, have allowed [the trial court] to infer that absent an
    injunction creating a constructive fund, Appellants would
    likely dissipate their assets rendering them “judgment
    proof”. Dissipation of assets by the Appellants would cause
    Appellees to suffer immediate and irreparable harm as
    Appellees would have no avenue to collect damages if they
    a judgment was made in their favor.
    (Trial Court Opinion at 7). The court further explained:
    Although Appellants are correct in claiming that this matter
    is about money, Appellants are mistaken in claiming
    Appellees would be able to be compensated by an award of
    damages in the absence of an injunction. In the case of
    Citizens Bank of Pennsylvania v. Myers, the court held
    a preliminary injunction preventing the dissipation of assets
    was proper where the defendants did not provide evidence
    of another way to pay the Plaintiff’s award of damages.
    Citizens Bank of Pennsylvania, 
    [supra] at 836
    . In the
    present case, Appellants have admitted KGOC does not have
    any assets in addition to the proceeds of the settlement
    agreement. Appellants have not offered evidence of an
    alternate means of paying Appellees if Appellees are
    successful in this matter. Absent the proceeds of the
    settlement agreement, Appellants do not have the means to
    pay damages to the Appellees if damages are awarded.
    Therefore, although this case is about money, there is no
    money besides the proceeds of the settlement agreement.
    Thus, Appellees cannot be adequately compensated by an
    award of damages absent this injunction.
    (Id. at 8-9) (record citation omitted).
    On this record, we see no abuse of discretion concerning the court’s
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    J-S25034-22
    determination that Appellees would suffer immediate and irreparable harm if
    Appellants dissipated their assets, resulting in no avenue for Appellees to
    recover any damages awarded in the instant underlying lawsuit. Appellants
    admitted that they had no other funds with which to pay a judgment;
    therefore, without the injunction Appellees would be incapable of being fully
    compensated by money damages. Therefore, the record supports the court’s
    order granting the special injunction and imposing a constructive trust to
    prevent Appellants from using the money received from the settlement. See
    Morgan Trailer Mft. Co., supra. Appellants’ first and second issues merit
    no relief.
    In their third issue, Appellants assert that the court failed to recognize
    that the injunction will cause greater injury to Appellants by preventing them
    from using the funds, than it would cause to Appellees by denying the
    injunction.   Specifically, Appellants claim the injunction causes significant
    disruption to their business interest, completely stopping their ability to
    engage in any business activities or investments. (Appellants’ Brief at 27-28).
    We disagree.
    The second element for a preliminary injunction requires the court to
    weigh the harm an injunction would cause each party. In issuing a preliminary
    injunction, the court must consider whether “greater injury would result from
    refusing an injunction than from granting it.” Warehime, supra at 210, 
    860 A.2d at 46
    .
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    J-S25034-22
    Instantly, the trial court explained its reasoning as follows:
    [T]he order allows future payments to be made from the
    constructive trust by either written consent of the parties or
    by order of this court. Being specially crafted in this way,
    the order places the least possible burden on Appellants. In
    contrast, Appellees would suffer substantial harm if the
    injunction was denied. As stated previously, absent the
    injunction, this [c]ourt believes Appellants will dissipate
    funds in an attempt to become “judgment proof,” leaving
    Appellees with no means of recovery. This injunction is
    carefully crafted to take into account the interest of both
    parties. Similar to the case of Ambrogi v. Reber, this
    specific injunction is the only way to protect Appellees’ right
    to collect a judgment while allowing Appellants to fulfill their
    monetary obligations. See Ambrogi[, supra at] 977-78.
    Appellees will suffer greater harm by having no means of
    recovery than Appellants will suffer by not being able to use
    the frozen funds beyond the obligations provided for in the
    injunction. Thus, the [t]rial [c]ourt did not err in granting
    the injunction as the injunction will not cause Appellants
    greater injury than it would cause Appellees by denying the
    injunction.
    (Trial Court Opinion at 10) (record citation omitted).
    Here, the record is clear that the trial court considered the harm that
    would be suffered by both parties and crafted the injunction to mitigate this
    harm to the extent possible. On this record, we see no abuse of discretion in
    the court’s order. See Morgan Trailer Mft. Co., supra. Appellants’ third
    issue is meritless.
    In their fourth issue, Appellants argue that Appellees failed to establish
    that they are likely to prevail on the merits of their underlying claims.
    (Appellants’ Brief at 30). Specifically, they contend that Appellees’ right to
    relief is not clear because there are multiple legal insufficiencies in Appellees’
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    J-S25034-22
    case. Appellants insist the alleged agreement between the parties was invalid
    because it lacked consideration, and there was an unsatisfied condition
    precedent barring Appellees from succeeding on the merits of their claim. (Id.
    at 33-37). Appellants assert that Appellees cannot establish a clear right to
    relief, and the trial court erred in issuing the preliminary injunction.    We
    disagree.
    Our Supreme Court has stated, “[t]o establish a clear right to relief, the
    party seeking an injunction need not prove the merits of the underlying claim,
    but need only demonstrate that substantial legal questions must be
    resolved to determine the rights of the parties.”           SEIU Healthcare
    Pennsylvania v. Com., 
    628 Pa. 573
    , 591, 
    104 A.3d 495
    , 506 (2014)
    (emphasis added).    This Court has also observed that “[f]or a right to be
    ‘clear,’ it must be more than merely ‘viable’ or ‘plausible.’    However, this
    requirement is not the equivalent of stating that no factual disputes exist
    between the parties.” Ambrogi, supra at 980 (citations omitted). Thus,
    [w]e do not attempt to determine whether the party seeking
    the preliminary injunction is guaranteed to prevail because
    our review of a decision regarding a preliminary injunction
    does not reach the merits of the controversy. The proper
    question is whether the party seeking the preliminary
    injunction produced sufficient evidence to show that
    substantial legal questions must be resolved to
    determine the rights of the respective parties.
    Id. (citations and internal quotation marks omitted; emphasis added).
    Here, the trial court reasoned:
    Appellants argue Appellees are not likely to prevail on the
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    J-S25034-22
    merits due to three legal insufficiencies in Appellees’ case.
    First, Appellants claim the contract between Perko/KGOC
    and Russ Jr., the Assignment Agreement, is unenforceable
    due to lack of consideration, while Appellees claim the
    Assignment Agreement is a binding contract. Second,
    Appellants claim the contract is unenforceable due to the
    condition precedent, that an affiliated individual report must
    be filed with the Department of Health, was not satisfied.
    Appellees claim KIC was at fault for refusing to submit the
    report. (Amended Complaint at 19). Third, that Appellees
    did not show that Perko/KGOC has been unjustly enriched.
    … The issues raised by Appellants are substantial legal
    questions concerning the validity of the Assignment
    Agreement. Appellees contest these issues, if they did not,
    this matter would not be before the court. Therefore, the
    Appellees have met their burden with this element of the
    injunction and thus, there was no error in granting the
    injunction.
    (Trial Court Opinion at 10-11) (some record citations omitted).
    We agree with the trial court that there are substantial legal questions
    to be resolved concerning the validity of the Assignment Agreement. See
    SEIU Healthcare, supra; Ambrogi, supra. Despite Appellants’ assertion to
    the contrary, Appellees were not required to prove the merits of their claims;
    rather they were only required to produce “sufficient evidence to show that
    substantial legal questions must be resolved to determine the rights of the
    respective parties.” Id. at 980 (citation omitted). The trial court found that
    Appellees met this burden, and we see no abuse of discretion here.        See
    Morgan Trailer Mft. Co., supra.          Appellants’ fourth claim of error is
    meritless.
    In their last issue, Appellants claim the court erred in granting the
    preliminary injunction because it does not restore the parties to their status
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    J-S25034-22
    immediately prior to the alleged wrongful conduct. Appellants assert that the
    injunction is broader than needed, and only half of the settlement proceeds
    should be placed into the escrow account because Russ Jr. alleges that he is
    entitled to half of KGOC. (Appellants’ Brief at 41-43). We disagree.
    The final prerequisite for the grant of a preliminary injunction is proof
    that the injunction would restore the status quo among the parties.       “The
    status quo to be maintained by a preliminary injunction is the last actual,
    peaceable and lawful non-contested status which preceded the pending
    controversy.” Allegheny Anesthesiology Assocs., Inc. v. Allegheny Gen.
    Hosp., 
    826 A.2d 886
    , 894 (Pa.Super. 2003), appeal denied, 
    577 Pa. 684
    , 
    844 A.2d 550
     (2004) (citation omitted). Thus, “[t]he relevant standard requires
    that an injunction must address the status quo as it existed between the
    parties before the event that gave rise to the lawsuit, not to the situation as
    it existed after the alleged wrongful act but before entry of the injunction.”
    Ambrogi, supra at 979 (citation omitted).
    Here, the trial court reasoned:
    Appellants assert if Appellees are successful in this matter
    that Russ Jr. is entitled to only 50% of the proceeds from
    the Settlement Agreement because Russ Jr. was 50% owner
    of KGOC before returning his interest to Perko and the
    Assignment Agreement stated Perko would give the 50%
    interest back to Russ Jr. The purpose of this injunction is to
    secure a means by which Appellees can collect a judgment
    if they prevail on the merits of the case. Appellees claim
    that if successful in this matter the damages will exceed
    50% of the funds received by Perko/KGOC from KIC.
    Therefore, an injunction creating a constructive trust with
    only 50% of the proceeds received by Perko/KGOC from KIC
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    J-S25034-22
    would not allow for Appellees to fully recover if damages are
    rewarded.
    (Trial Court Opinion at 11) (record citation omitted).
    We conclude that the trial court did not abuse its discretion in requiring
    that Appellants preserve the settlement assets in full in order to satisfy any
    judgment that might be entered in this case and to preserve the status quo.
    Appellees’ amended complaint sought various damages against Appellants
    including, inter alia, damages for breach of contract, claims under the
    Pennsylvania Uniform Voidable Transactions Act, and unjust enrichment.
    (Amended Complaint at 23-31). In the underlying lawsuit, Appellees claim
    they have been wrongfully deprived of their entire interest in KGOC and KIC.
    Thus, Appellees’ potential recovery is not limited to half of the proceeds of the
    Settlement Agreement; rather, preservation of those assets merely provides
    Appellees with an avenue of recovery should they prevail on the merits.
    Accordingly, the trial court had apparently reasonable grounds to issue the
    preliminary injunction.    Duquesne Light Co., supra; Summit Towne
    Centre, Inc., 
    supra.
     Therefore, we affirm the trial court’s order.
    Order affirmed.
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    Judgment Entered.
    Joseph D. Seletyn, Esq.
    Prothonotary
    Date: 11/01/2022
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