Zagg, Inc. v. Harmer, 2015 UT App 52 (Feb. 26, 2015)
The plaintiff company appealed from the denial of a preliminary injunction to prevent the defendant, the company’s former director, from selling shares of the company’s stock. The Utah Court of Appeals held that the district court abused its discretion in denying the preliminary injunction. Specifically, it held that the district court’s narrow focus on whether the company would ultimately be able to collect on the note overlooked the value to the company of the bargained-for leverage of the prohibition on the sale of “encumbered shares.”