P entered into a contract with the City of Trenton for construction of a sewage plant. P by written agreement subcontracted the concrete work to D. During the course of performance of the subcontract, various disputes arose between P-D. P gave notice of termination for the alleged default of D. On July 13, 1960, P took possession of D’s tools and equipment and assumed performance of the concrete work. P then sued in state superior court. D then removed the case to federal court and filed an answer and counterclaim for sums due under the contract, breach of contract, conversion of the tools and equipment and injunctive relief against P’s continued use and possession of the tools. The district court denied the petition for an injunction. D appealed.

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