Order Denying Motion to Stay Pending Appeal — Camelot v. SBA (E.D. Wis.)

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An order dated May 4, 2020 by District Judge Lynn Adelman of the U.S. District Court for the Eastern District of Wisconsin in Camelot Banquet Rooms, Inc., et al. v. United States Small Business Administration, et al., Case No. 20-C-0601, and J.R. Schuster, LLC v. United States Small Business Administration, et al., Case No. 20-C-634. It rules on the government's emergency motion to stay the court's order of May 1, 2020 pending appeal or, alternatively, to extend the compliance deadline by 36 hours. Applying the standard in In re A&F Enters., Inc., 742 F.3d 763, 766 (7th Cir. 2014), the court denies the stay for the same reasons it granted the plaintiffs' preliminary injunction motions. It grants the alternative request and amends the injunction so the government must transmit guarantee authority to the plaintiffs' banks no later than 12:00 a.m. on May 6, 2020.

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UNITED STATES DISTRICT COURT 
EASTERN DISTRICT OF WISCONSIN 
 
 
CAMELOT BANQUET ROOMS, INC., 
DOWNTOWN JUNEAU INVESTMENTS, LLC, 
MIDRAD, LLC, and 
PPH PROPRTIES I, LLC 
 
Plaintiffs, 
 
 
v. 
Case No. 20-C-0601 
 
UNITED STATES SMALL BUSINESS 
ADMINISTRATION; JOVITA CARRANZA, 
in her Official Capacity as Administrator of  
the Small Business Administration;  
UNITED STATES OF AMERICA; and 
STEVEN MNUCHIN, in his Official Capacity  
as United State Secretary of Treasury, 
 
Defendants. 
 
______________________________________________________________________ 
 
J.R. SCHUSTER, LLC, 
 
Plaintiff, 
 
v. 
 
 
 
 
 
Case No. 20-C-634 
 
UNITED STATES SMALL BUSINESS 
ADMINISTRATION; JOVITA CARRANZA, 
in her Official Capacity as Administrator of  
the Small Business Administration;  
UNITED STATES OF AMERICA; and 
STEVEN MNUCHIN, in his Official Capacity  
as United State Secretary of Treasury, 
 
Defendants. 
 
 
 
ORDER   
 
The government has filed an emergency motion to stay this court’s order of May 
1, 2020 pending appeal or, in the alternative, to extend the deadline for compliance for 
36 hours. To determine whether to grant a stay, I must consider the moving party's 

2 
 
likelihood of success on the merits, the irreparable harm that will result to each side if the 
stay is either granted or denied in error, and whether the public interest favors one side 
or the other. In re A&F Enters., Inc., 742 F.3d 763, 766 (7th Cir. 2014). This standard 
“mirrors that for granting a preliminary injunction.” Id. For the same reasons I granted the 
plaintiffs’ motions for a preliminary injunction, I deny the defendants’ motion for a stay 
pending appeal. The defendants have shown no likelihood of success on appeal, and the 
harm to the plaintiffs from delaying their ability to obtain PPP loans outweighs any harm 
the government would suffer without a stay. The public interest in disbursing PPP funds 
also favors the plaintiffs.   
 
However, I do not believe that the plaintiffs would be harmed by the 36-hour delay 
the government requests in the alternative. Accordingly, the court will amend the 
preliminary injunction to provide that the government must transmit guarantee authority 
to the plaintiffs’ banks no later than 12:00 a.m. on May 6, 2020. 
 
For the reasons stated, IT IS ORDERED that defendants’ motion for a stay pending 
appeal is DENIED. 
 
IT IS FURTHER ORDERED that the alternative motion for 36 additional hours to 
comply with the injunction is GRANTED.  
 
Dated at Milwaukee, Wisconsin, this 4th day of May, 2020.  
 
 
 
 
 
 
 
 
 
s/Lynn Adelman____ 
 
 
 
 
 
 
 
LYNN ADELMAN 
 
 
 
 
 
 
 
District Judge

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