FEDERALCourt of Appeals for the Sixth Circuit
1995

Performance Unlimited, Inc. v. Questar Publishers, Inc.

52 F.3d 1373Court of Appeals for the Sixth Circuit • Decided 1995Remanded
FLAGSHIPDispute ResolutionArbitrationCited 183 times

HOLDING

Performance Unlimited sued Questar Publishers over unpaid royalties under a licensing agreement that required arbitration as the sole remedy. The district court refused to issue a preliminary injunction to preserve royalties during arbitration. The Sixth Circuit reversed, holding that courts can grant preliminary injunctions to maintain the status quo pending arbitration when standard legal requirements are met. This matters to subcontractors because it means you can ask a court to protect your payment rights while disputes go to arbitration, rather than waiting months or years without payment.

KEY FINDINGS

Dispute Resolution

If your contract requires arbitration, you can still ask a court for a preliminary injunction to preserve payment or performance obligations while arbitration proceeds

Arbitration

Courts will grant emergency relief (like payment orders) during arbitration if you meet the standard four-factor test: likelihood of success, irreparable harm, balance of equities, and public interest

FULL COURT OPINION