What Is Injunctive Relief and How Can It Help My Business

Injunctive relief is a legal remedy one party pursues against another when a monetary award isn’t enough to compensate for the harm they suffer. The court can order someone to stop or take a specific action due to the irreparable damage it can cause.

You might pursue a lawsuit for injunctive relief under these circumstances:

  • Breached licensing agreement
  • Misappropriated or stolen trade secrets
  • Violation of a non-compete agreement
  • Exclusion or termination of a minority shareholder from a closely held business
  • Infringement of intellectual property
  • Breach of contract
  • Business partner misusing assets owned by the company
  • A former employee stealing clients

Types of Injunctive Relief 

As a business owner, you can encounter various issues with the people you run the company with, employ, or hire for contract jobs. Although financial compensation can cover expenses from a breach of contract or theft, it doesn’t prevent that person or someone else from doing the same thing again.

There are three main types of injunctive relief:

  • Temporary restraining order – A temporary restraining order (TRO) is a court order to protect your business from additional harm. It also sets your case for a temporary injunction hearing. You must show you risk irreparable and immediate loss, injury, or damage to request a TRO from the court. That means that if the defendant is not stopped from or forced to take specific actions, their continued behavior can hurt you somehow. However, the protection is limited. Typically, it only lasts up to fourteen days.
  • Temporary injunction – The court will hold a temporary injunction hearing after you file for a TRO. The defendant is prohibited from engaging in the acts outlined in the TRO if the judge orders a temporary injunction. They must comply with the temporary injunction for the duration of the lawsuit.
  • Permanent injunction – The court can issue a permanent injunction to compel the defendant to take action or discontinue the damaging acts. The order upholds the terms of a TRO and preliminary injunction but makes the terms permanent. It can also include additional provisions the defendant must follow.

Anyone who violates an injunction order can face serious consequences. The court might order them to pay a fine or serve a jail sentence.

How to Prepare for a Temporary Injunction Hearing 

What Is Injunctive Relief and How Can It Help My BusinessFiling for injunctive relief might seem like a straightforward process. However, it is often complicated to handle without a lawyer. You must follow multiple laws and procedures to file the request correctly and prove the circumstances applying to your case. The outcome will likely be unfavorable if you don’t know where to obtain evidence or how to argue for a temporary injunction before the judge.

You should hire a business law attorney before filing a TRO. Your lawyer can guide you during each step of the process and help build your case. An injunctive relief case starts with filing a complaint. The judge will review it to determine the circumstances of the business dispute to prepare for the upcoming hearing.

You must obtain relevant documentation to show the judge during the hearing. You can also ask witnesses to testify on your behalf.

The evidence you present to get injunctive relief must prove these elements:

  • There is a substantial likelihood that you will suffer irreparable harm without the injunction
  • Your harm outweighs the losses the defendant might experience from an ordered injunction
  • Your claim is likely to succeed on the merits
  • The injunction order would not go against the public’s interests

For example, if another party infringes on your company’s intellectual property, you must show evidence proving you own the property. If the court orders a temporary injunction, the defendant is prohibited from monetizing the stolen property during litigation.

An injunctive relief clause is a common term in business contracts. It prohibits parties from taking specific actions that can harm each other. If an injunctive relief clause is in the contract you and the defendant signed, it can improve your chance of winning your case. 

Protect Your Business with Arenson Law Group, PC 

Disputes are expected while running a business. Dealing with partners, employees, and outside parties creates situations that can harm your company’s future. An injunction can be a valuable tool to safeguard your business from someone else’s misconduct.

With over three decades of legal experience, a Cedar Rapids business lawyer from Arenson Law Group, PC can protect your interests. Call us at (319) 363-8199 for a confidential consultation today if you face a business dispute and want to resolve it with injunctive relief.

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Written by James H. Arenson

Last Updated : December 15, 2023