Did you know that, when you appeal a mandatory preliminary injunction, the injunction is automatically stayed? An appeal in that instance can be very powerful.
But when is an injunction truly mandatory? Whether an appeal is mandatory or prohibitory can be very tricky to determine. Getting it wrong can be devastating, as the appellant learned in Chanin v. Community Rebuild Partners (D2d5 Apr. 23, 2021) no. B299188 (nonpub. opn.).
The Second District Court of Appeal disagreed that the injunction was mandatory in nature, and concluded the appellant was trying to take advantage of a status quo favorable to her. And because the appellant did not bother to test the proposition in a motion to stay in the trial court, or a petition for writ of supersedeas in the Court of Appeal, the court concluded her failure to comply with the injunction amounted to a willful disobedience giving rise to disentitlement of her right to appeal.
This case is a surprising application of the disentitlement doctrine, because the appellant's conduct was supported by fairly strong legal propositions: (1) on its face, the injunction did appear to be mandatory and thus stayed; (2) the automatic stay does not require the appellant to seek court orders to effect the stay; and (3) the injunction failed a key statutory requirement that it require the moving party to post a bond, and was thus invalid as a matter of law. But the Court of Appeal dismissed the appeal anyway.
The lesson: If an automatic appellate stay seems too good to be true, it might be.