Sarah Elizabeth Pillai v. Charles Schwab & Co., Inc.

CourtDistrict Court, S.D. New York
DecidedNovember 20, 2025
Docket1:25-cv-03836
StatusUnknown

This text of Sarah Elizabeth Pillai v. Charles Schwab & Co., Inc. (Sarah Elizabeth Pillai v. Charles Schwab & Co., Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sarah Elizabeth Pillai v. Charles Schwab & Co., Inc., (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK SARAH ELIZABETH PILLAI, Plaintiff, 25 Civ. 3836 (JHR) (BCM) -against- ORDER DENYING MOTION FOR CHARLES SCHWAB & CO., INC., TEMPORARY RESTRAINING ORDER AND PRELIMINARY Defendant. INJUNCTION JENNIFER H. REARDEN, District Judge: Plaintiff Sarah Elizabeth Pillai brings this action pro se, alleging, inter alia, breaches of contract and fiduciary duty by Defendant Charles Schwab & Co., Inc. (“Schwab”). Before the Court are Plaintiff’s Emergency Motion for Temporary Restraining Order, Preliminary Injunction, and Limited Expedited Discovery, ECF No. 20 (Pl. Mot.) and supporting declaration, ECF No. 21 (Pl. Decl.), as well as Defendant’s letter in response, ECF No. 22 (Def. Ltr.).1 BACKGROUND2 Plaintiff attests that, on September 20, 2025, Schwab “sent [her] a letter concerning [her] Inherited IRA account . . . stating: ‘If you do not fund your account within 60 days, we will accept this as your intent to discontinue using this account. Thereafter, we will initiate our process to close the account.’” Pl. Decl. ¶ 3 (citing Pl. Decl. Ex. A). Plaintiff states that Schwab “already closed two prior Inherited IRA accounts” in the same manner in 2022, 2023, and 2024. Id. ¶ 5. Plaintiff further avers that, if Schwab closes her current account (identified with an 1 Plaintiff first attempted to file these papers late on November 16, 2025. The Clerk of Court rejected her submissions for filing errors. See ECF Nos. 18, 19. Plaintiff refiled successfully on November 18, 2025, after business hours. 2 The Court “assume[s]” that the facts set forth in the Complaint, ECF No. 1 (Compl.), and Emergency Motion for Temporary Restraining Order, Preliminary Injunction, and Limited Expedited Discovery, are “true for purposes of the instant motion.” Natera, Inc. v. Bio-Reference Laboratories, Inc., No. 16 Civ. 9514 (RA), 2016 WL 7192106, at *1 n.1 (S.D.N.Y. Dec. 10, 2016) (denying request for a temporary restraining order). account number ending -3503), then “all records associated with [her] three Inherited IRA accounts will be permanently destroyed.” Id. ¶ 6. Plaintiff seeks a temporary restraining order (“TRO”) and preliminary injunction essentially (1) prohibiting Schwab from “closing, liquidating, restricting, or interfering with

Plaintiff’s Inherited IRA account ending -3503 pending resolution of this case” and (2) requiring Schwab to “preserve all internal logs, authorization records, communication records, system entries, and ‘notes on record’ associated with Plaintiff’s three Inherited IRA accounts,” as well as her deceased father’s IRA account, of which plaintiff claims to be “a 20% beneficiary.” Pl. Mot. at 1, 4. Plaintiff also asks the Court to direct Schwab to “remove any third party notes, any third party authorizations, and any restrictions preventing Plaintiff from communicating directly with Schwab about her account and preventing proper funding” and to “produce critical authorization and restriction records within 5 business days.” Id. LEGAL STANDARDS As Plaintiff is proceeding pro se, the Court construes her pleadings “liberally” and

interprets them “to raise the strongest arguments that they suggest.” Triestman v. Federal Bureau of Prisons, 470 F.3d 471, 474 (2d Cir. 2006) (per curiam) (citation and internal quotations omitted). But “[p]ro se status does not exempt a party from compliance with relevant rules of procedural and substantive law.” Azzarmi v. Key Food Stores Co-Operative Inc., No. 20 Civ. 6835, 2021 WL 1734922, at *3 (S.D.N.Y. May 3, 2021) (citation and internal quotations omitted). “It is well established that in this Circuit the standard for an entry of a temporary restraining order is the same as for a preliminary injunction.” Basank v. Decker, 449 F. Supp. 3d 205, 210 (S.D.N.Y. 2020) (quoting Andino v. Fischer, 555 F. Supp. 2d 418, 419 (S.D.N.Y. 2008)). Preliminary injunctive relief “is an extraordinary and drastic remedy, one that should not be granted unless the movant, by a clear showing, carries the burden of persuasion.” Grand

River Enter. Six Nations, Ltd. v. Pryor, 481 F.3d 60, 66 (2d Cir. 2007) (per curiam) (internal quotation marks and citation omitted). A plaintiff seeking preliminary injunctive relief to preserve the status quo “must establish that [she] is likely to succeed on the merits, that [she] is likely to suffer irreparable harm in the absence of preliminary relief, that the balance of equities tips in [her] favor, and that an injunction is in the public interest.” Gazzola v. Hochul, 88 F.4th 186, 194 (2d Cir. 2023) (quoting Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 20 (2008)). “The district court has wide discretion in determining whether to grant a preliminary injunction[.]” Moore v. Consol. Edison Co., 409 F.3d 506, 511 (2d Cir. 2005). Significantly, “[a] showing of irreparable harm is the single most important prerequisite for the issuance of a

preliminary injunction.” Sibanda v. Elison, No. 23 Civ. 5752 (JMF), 2023 WL 7165046, at *1 (S.D.N.Y. Oct. 31, 2023) (quoting Faiveley Transp. Malmo AB v. Wabtec Corp., 559 F.3d 110, 118 (2d Cir. 2009)) (internal quotation marks omitted). DISCUSSION A. Likelihood of Success on the Merits “Defendant’s motion[] to dismiss,” ECF No. 10, “cast[s] doubt on whether [Plaintiff] can show a likelihood of success or raise serious questions going to the merits.” Sibanda, 2023 WL 7165046 at *1. Plaintiff’s claims against Schwab rest on the allegation that she is “the rightful beneficiary of her late father’s IRA.” ECF. No. 1 (Compl.) ¶ 3. Schwab argues that “all claims in the Complaint . . . are precluded and/or time-barred,” and further avers that “[t]he relief

Plaintiff seeks in this litigation . . . was already denied with prejudice” in state court. Def. Ltr. at 1; see also ECF No. 10-2 (Def. Mem.) at 4 (asserting that “in multiple April 2025 orders, the Supreme Court specifically denied the relief Plaintiff again seeks in the Complaint.”).3 Moreover, despite having notice of Schwab’s arguments for nearly five months, see ECF No. 10, Plaintiff’s TRO filings “contain no legal analysis.” Cunningham v. Gregory Funding, No. 19 Civ. 5480 (AJN), 2019 WL 5887450 (S.D.N.Y. Nov. 9, 2019) (denying temporary restraining

order because pro se plaintiff “ha[d] not met his burden of persuasion”). On the record before the Court, “the Court declines to find that Plaintiff has established a likelihood of success on the merits of [her] case to entitle [her] to the extraordinary relief [s]he seeks.” Crichlow v. Verituity Inc., et al., No. 25 Civ. 6591, ECF No. 15 at *2 (JHR) (SN) (S.D.N.Y. August 29, 2025) (Netburn, M.J.); Park Irmat Drug Corp. v. Optumrx, Inc., 152 F. Supp. 3d 127, 132 (S.D.N.Y. 2016) (denying temporary restraining order and preliminary injunction after “consider[ing] the entire record”). B. Irreparable Harm Plaintiff has “fail[ed] to establish the single most important prerequisite for preliminary injunctive relief, namely irreparable harm.” Sibanda, 2023 WL 7165046 at *1 (denying

preliminary injunction because plaintiff failed to show a risk of irreparable harm). “The Second Circuit has held that ‘courts must not simply presume irreparable harm . . . .

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Bluebook (online)
Sarah Elizabeth Pillai v. Charles Schwab & Co., Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/sarah-elizabeth-pillai-v-charles-schwab-co-inc-nysd-2025.