MEMORANDUM AND ORDER
HAROLD H. GREENE, UNITED STATES DISTRICT JUDGE
Plaintiffs were suspended as a government contractors on July 27, 1988, after defendants received notice of a July 12, 1988 indictment returned against Alamo, Wulfe and Robbins by a grand jury in the Western District of Texas.
They subsequently filed an complaint in this Court, requesting declaratory and injunctive relief restraining defendants from maintaining the suspension. Following a hearing, the Court issued a Temporary Restraining Order enjoining defendants from taking steps to suspend plaintiffs from contracting with the federal government until the District Court for the Western District of Texas or the Department of Defense holds a hearing and issues a decision on plaintiff's motion to suppress the evidence upon which the suspension is based. Currently before the Court is plaintiffs' motion for a preliminary injunction to continue in force the mandate of the soon-to-expire TRO.
It is undisputed that the basis for plaintiffs' suspension is the indictment returned by the Texas grand jury, and that under relevant regulatory authority, an indictment may serve as adequate evidence for suspension. See FAR 9.407-2(b). The complaint does not allege that the Department failed to comply with its own regulations, but rather that it failed to comply with the federal wiretapping statute, 18 U.S.C. § 2510 et seq. Plaintiffs argue that, because the indictment is based primarily on evidence obtained from a wiretap the legality of which plaintiffs dispute, defendants were required prior to use of the indictment as grounds for suspension to provide them a hearing pursuant to 18 U.S.C. § 2518(10)(a).
In determining whether a preliminary injunction should issue, the Court must consider (1) the likelihood that plaintiffs will prevail on the merits; (2) irreparable harm likely to occur absent an injunction; (3) harm to other parties due to issuance of injunctive relief; and (4) the public interest in granting the injunctive relief requested. Virginia Petroleum Jobbers Ass'n v. FPC, 104 U.S. App. D.C. 106, 259 F.2d 921 (1958). A review of the law and facts of this case indicate that, on balance, equity demands that the injunction issue.
First, and most importantly, the Court finds that plaintiffs' likelihood of success on the merits, insofar as it relates to their right to obtain a hearing prior to suspension based on the allegedly illegal indictment, is high. 18 U.S.C. § 2515 provides that no evidence derived from a wiretap may be received in evidence in any proceeding before any department, officer, or agency, if disclosure of the information would be in violation of the wiretap statute. 18 U.S.C. § 2518(10)(a) provides for a hearing on a motion to suppress if it is alleged that such a violation is imminent, as follows:
(10)(a) Any aggrieved person, in any . . . proceeding in or before any . . . department, officer, [or] agency, . . . may move to suppress the contents of any wire or oral communication intercepted pursuant to this chapter, or evidence derived therefrom, on the grounds that -- (i) the communication was unlawfully intercepted. . . . (emphasis added).