motion, the district court entered partial summary judgments on November 24, 1992, in their favor for a total of $1,150,000 on a theory of unjust enrichment, $400,000 against Heine, and $750,000 against Granada Inc.1 In addition, on that day by a separate order, the court entered a preliminary injunction against Granada Inc. and Heine, as well as against a third appellant, Granada Investments, L.P. (Granada Partnership), enjoining the three appellants from disposing of $1,500,000 obtained by Granada Inc. in settlement of other litigation we describe below. Granada Partnership is a limited partnership of which Granada Inc. is the general partner.
On the appellants’ motion the district court certified the partial summary judgments as final under Fed.R.Civ.P. 54(b) in an order entered March 24, 1993. However, because the Plans’ action seeks repayment based on the notes themselves, their claims remain open in part in the district court. Moreover, it is undisputed that a recovery on the notes would result in judgments including the $1,150,000 already awarded, though it could include additional recoveries for attorneys’ fees, interest, and costs.
Granada Inc., Granada Partnership, and Heine appeal from the orders of November 24, 1992, and March 24, 1993. Because we conclude that the district court abused its discretion in making the certification under Rule 54(b), we will dismiss the appeal from the partial summary judgments and will consider the issues raised with respect to those judgments only incidentally to the appeal from the preliminary injunction. We will affirm the district court order granting the preliminary injunction.
I. FACTUAL AND PROCEDURAL BACKGROUND
This ease- arises from activities of Leonard Pelullo and various of his associates. Prior to March 1989, Pelullo interested Heine, a prominent attorney, in making a tender offer to acquire a controlling interest in DWG Corporation, a diversified Miami-based public company for which Pelullo had served as a consultant. With Heine providing investment and legal advice, Pelullo formed Granada Partnership for use in acquiring DWG.
In the spring of 1989, while the takeover bid for DWG was pending, and after Granada Inc. had started litigation against DWG regarding that bid, Pelullo obtained control of Compton Press, Inc., a New Jersey corporation,2 by acquiring Equity Finance Group, Inc., Compton’s owner. Compton at that time maintained the appellee Plans, Compton Press, Inc. Employees’ Profit Sharing Retirement Plan and Compton Press, Inc. Employees’ Thrift Plan. The Plans are regulated under the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. § 1001 et seq.
After Pelullo took control of Compton, its board of directors at a meeting on May 19, 1989, appointed Pelullo and his associate, David Hellhake, as a new committee for the Plans. In addition, the board appointed Hellhake and another Pelullo associate, Raul Corona, Plan trustees and administrators. In those capacities Hellhake and Corona joined the previous trustees and administrators, Harry Gerardi and Coolidge Marqueen, who stayed in their positions until removed in September 1989.3
The events giving rise to this litigation occurred shortly after Pelullo gained control of Compton. In early June 1989, the Plans transferred $750,000 to Granada Inc.’s account at the Imperial Bank in Miami, and in July 1989, the Plans transferred $400,000 to Heme’s account at the Marine Midland Bank in New York. Though the legal character of these transfers initially was not documented, the transfers some months later retroactively were made into formal loans. This structur
1
A magistrate judge conducted the proceedings with the consent of the parties pursuant to 28 U.S.C. § 636(c)(1). Thus, in the opinion, our references to the district court are to the magistrate judge.
2
Compton Press, Inc. is now defunct.
3
.Several of these Pelullo associates also were involved in the management of Granada Inc. As of June 1989, Bonnie Lynn was a vice president, secretary and a director of Granada Inc. and David Hellhake was a vice president, assistant secretary and a director. Lynn and Hellhake were the only persons authorized to sign checks on its accounts at the Imperial Bank in Miami.