In a Financial Advisor Transitions post earlier this week, we discussed a temporary restraining order ("TRO") that Wells Fargo requested against two former advisors, Brady Peddler and Joseph Santana. In the TRO, Wells Fargo sought to prohibit the former advisors from soliciting clients they serviced at Wells Fargo. This legal filing by Wells Fargo was unusual because both Wells Fargo and RBC Wealth Management, the firm to which the advisors transitioned, are members of the Protocol for Broker Recruiting.

On September 1, Wells Fargo's request for a TRO was denied by a federal judge. In the Order, the federal judge said that "[i]t is not clear how injury so imminent and irreparable that notice and a hearing on an application for preliminary injunction is impractical[.]" The federal judge also referred to a TRO an "extreme remedy." "Irreparable harm" is one factor that must be shown for a court to grant a TRO.

This ruling is the second recent ruling on a request for a TRO that questioned the presence of irreparable harm. A federal judge in Michigan denied a request for a TRO from JPMorgan, writing that the judge did not "see how you could come to the conclusion that a single financial advisor in a small branch bank . . . could inflict irreparable harm on a financial giant like J.P. Morgan."

Financial Advisor Transitions helps advisors weigh the advantages and disadvantages of their transition options, and guides them as they transition from one firm to another. Call us today for a free consultation.