December 09, 2002

The federal court of appeals in Chicago has overturned a preliminary injunction that had been entered against Reuters, the well-known global provider of news, financial information and technology solutions.

Plaintiff FutureSource contracted with a company called Bridge to be supplied with streaming financial news and data, which FutureSource then re-sold to its customers.  When Bridge declared bankruptcy in 2001, Reuters purchased a majority of Bridge's assets and later reached a separate agreement with FutureSource to supply the same data stream for six months.  Shortly before that agreement expired, FutureSource sought an injunction and other relief in federal court in Chicago, arguing that Reuters did not have the right to turn off the data stream.  Reuters counterclaimed for nonpayment.  After the district court entered a preliminary injunction, Reuters filed an interlocutory appeal and successfully sought a stay of the order pending briefing and argument.  On November 27, the Seventh Circuit Court of Appeals issued an opinion in FutureSource LLC v. Reuters Limited, reversing the injunction and stating that "a preliminary injunction should not be entered if the plaintiff has no claim; and FutureSource has none."  The matter was remanded for further proceedings in the district court.

Reuters was represented by Richard A. Rothman of Weil, Gotshal & Manges LLP in New York, working closely with a team of Jenner & Block partners led by Avidan J. Stern that included Partners Jerold S. Solovy, Donald R. Harris, Barry Levenstam and Ronald R. Peterson, assisted by Associate Matthew G. Borgula.