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Maples v. Muscletech, Inc.

The determination of the adequacy of the bond set by the trial court is to be made on a case-by-case basis based upon the record before the reviewing court.

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ON MOTION FOR TEMPORARY STAY

In the proceeding underlying this interlocutory appeal, appellants Scott Maples, his wife Rachel Maples, and TBA, Inc. (TBA) asked us to stay a temporary injunction granted by the trial court. The basis of their request is that the bond set by the trial court is inadequate to protect them from the potential damage they would suffer if it develops that the injunction was improperly granted. For reasons we later state, we overrule the request.

The underlying dispute centers on a licensing agreement executed in July 2000, between the Maples and Muscletech, Inc. (Muscletech). Under the agreement, Muscletech granted the Maples the right to use the Muscletech name to conduct retail sales of nutritional supplements and related products in exchange for a monthly licensing fee. The agreement also included a non-compete provision prohibiting the Maples from a variety of activities when the agreement was terminated. The text of this provision is set out below. *fn1 The Maples transferred their rights under the agreement to TBA.

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