Continuum Company, Inc. v. Incepts, Inc.
873 F.2d 801 (5th Cir. 1989)
Facts
P sued Incepts (D), and others for alleged appropriations of trade secrets, breaches of contract, and breaches of confidential relationships, contending that D had wrongfully used P's computer-software system. P sought an injunction to prevent D's use of the software. The court issued a temporary injunction against D, granting most of the relief P had sought on the condition that P post a $200,000 bond. D filed a voluntary petition under Chapter 11 of the Bankruptcy Code, thus automatically staying the pending suit. After the bankruptcy judge had lifted the stay, D removed the suit from state to federal court. Nine months later, D filed a motion in federal district court to dissolve the injunction or, alternatively, to increase the bond from $200,000 to $5,000,000. The district court increased the bond to $2,000,000. P appealed.
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