Injunction: A General Guide
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An injunction is a legal instrument ordered by the court that requires or prohibits an individual from performing an action to safeguard a party's legal rights. It is ordered to maintain the existing state of affairs where a certain action or inaction would inflict irreversible damage on a party. A person or entity not obeying a court-ordered injunction may face criminal or civil penalties. In this article, we have provided a comprehensive guide on injunctions.
Types of Injunctions
The court grants various types of injunctions; the most prevalent ones are:
- Preliminary Injunction: This is a short-term order given before a trial to protect the status quo and the plaintiff’s rights. A preliminary injunction gives the plaintiff quick relief until the case is resolved.
- Preventive Injunction: This is a long-term order issued after a trial to prevent the defendant from engaging in harmful, illegal, or unethical conduct. A preventive injunction aims to avoid future harm, maintain things as they are, and stop a consistent error.
- Mandatory Injunction: This is a long-term order and the most strict type of injunction. It's granted after a trial to compel the defendant to perform a good, right, and lawful act. It's strict because it forces the defendant to modify his actions. For example, the court can order a mandatory injunction to make the defendant demolish a structure or building built in the wrong place.
- Temporary Restraining Order: This concise order remains intact until the restraint period expires. The court issues it to protect the current condition of the disputed subject until the application for a provisional injunction is heard. It also aims to avoid any unnecessary and irreparable damage.
- Permanent Injunction: This is a permanent order issued at the time of the final verdict to provide a conclusive remedy to the plaintiff. These injunctions persist if the circumstances that warranted them are irreversible.
Requisites for an Injunction
For an injunction order to be granted by the court, certain conditions must be satisfied. These are.
- Prima-Facie Case: This implies that the applicant has provided sufficient evidence to substantiate their valid legal claim with a reasonable prospect of success at trial.
- Balance of Convenience: The balance of convenience favors the applicant. It states that the applicant would face more harm and hardship if the injunction is not granted. The court considers the benefits and burdens that might occur by granting an injunction on the account of both parties. After that, the court comes up with a fair and equitable judgment.
- Irreparable Damage: This implies that the applicant would suffer irreparable damage on non-granting of an injunction. It states that the applicant shall face such damage or loss if the injunction is not granted. Monetary damages or other legal remedies cannot compensate for this loss. Irreparable damage is considered the most essential requirement for obtaining an injunction. It proves that there is an urgent need for the court to intervene and preserve the status quo.
Reasons for Denial of an Injunction
There are certain grounds on which a requisite for an injunction order can not be granted. These are:
- Similar Legal Action: The respondent is already involved in a similar legal action, and granting an injunction would create unnecessary duplication.
- Redress from Legislative Body: The respondent is seeking redress from a legislative body, and granting an injunction would interfere with the legislative process.
- Criminal Charges on Respondent: The respondent faces criminal charges, and granting an injunction would affect the criminal justice system.
- Consent of Applicant: The applicant has implicitly agreed to the respondent’s act, either by silence or previous conduct. Hence, granting an injunction would be unfair to the respondent.
- Less Harmful Act: The respondent’s act is not harmful or annoying to the applicant, and granting an injunction would be unreasonable or arbitrary.
- Monetary Damages Recovered: The applicant can recover monetary damages for the respondent’s act, and granting an injunction would be excessive or disproportionate.
- Bad Faith of Applicant: The applicant has acted in bad faith or violated the law, and granting an injunction would reward the applicant’s misconduct.
Benefits of an Injunction
There are many benefits to an injunction order to be granted. Some of these are:
- Safeguarding the Rights and Interests: It can prevent the parties’ rights and interests from being infringed or damaged by the unlawful actions of others.
- Preventing Further Damage or Loss: It can prevent further damage or loss to the parties in situations where monetary or other legal remedies are not enough or adequate.
- Maintaining Status Quo: It can keep the status quo or the current situation of the case intact until the court gives the final verdict.
- Avoiding Unnecessary or Irreparable Injury: It can avoid unnecessary or irreparable injury to the parties by conveniently stopping or compelling certain actions.
- Promoting Fairness: It can promote fairness and equity by balancing the convenience and inconvenience of both parties.
- Upholding Rule of Law: It can uphold the law by enforcing the court’s authority and preventing disobedience or contempt of court orders.
Importance of Contempt of Court in Enforcing an Injunction
When the court issues an injunction, the parties must adhere to its provisions. If they do not comply, they may be charged with contempt of court following a fair trial. It is a criminal offense that implies the disrespect of the court and its authority. A fair trial will determine whether a fine or jail time is appropriate for those who disobey a court order. The court determines the amount of fine and length of the jail term based on the severity and nature of the punishment and will depend on the extent and gravity of the default.
Key Terms for Injunctions
- Prima Facie: The term means "on the face of it," "on first sight," or "on the first presence." The Prima Facie term used in injunction means the case has enough evidence to prove the defendant's accountability. Then, they must proceed to the trial judgment without further investigation.
- Irreparable Injury: An injury so severe that it cannot be compensated with monetary damages or other legal remedies.
- Balance of Convenience: It refers to the relative misconduct or inconvenience caused to the party. It arises when there is uncertainty about whether the remedies available for damage are adequate for either party or both.
- Monetary Damage: A legal remedy awarded to the applicant to compensate for any wrongful act or injury. The main essence of such a legal remedy is the payment of money.
- Restraining Order: An official court order prohibits an individual from performing a particular act, especially approaching or contacting a designated person.
Final Thoughts on Injunctions
The injunction is a legal instrument used to refrain an individual from performing certain actions to protect the interests and rights of the disputing parties. Even though it’s not a final verdict, it is a temporary measure that a court can modify or dissolve as the case progresses. It is granted only when rigorous legal standards are met, demonstrating that granting an injunction is essential and reasonable in the given situation.
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Neil B.
Professional Experience Neil Belloff is an accomplished business lawyer with over 35 years of business and legal experience, including as Board Member, General Counsel, Chief Compliance Officer, Chief Operating Officer and Corporate Secretary. After law school, Neil joined a boutique law firm in New York City and practiced as a litigator and corporate securities lawyer. Soon thereafter, Neil became a Senior Attorney-Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission in Washington, D.C. responsible for reviewing 1933 Act and 1934 Act documents, coordinating projects with the EPA and DOL, overseeing bankruptcy, reorganization and work-outs, responding to Congressional inquiries, and providing assistance to other SEC divisions and the Department of Justice. Following his tenure with the government, Neil practiced with several NY-based law firms providing legal and business services to public and private enterprises focusing on securities, corporate, employment, IP, licensing, M&A, finance, governance, litigation, compliance and privacy matters. Neil became an in-house attorney in 2003 joining Deutsche Telekom, one of the largest telecommunications companies in the world, as Executive Vice President and US Securities and Corporate Counsel. He joined Celgene Corporation, a publicly listed global biopharmaceutical company, in 2010 and became General Counsel, Chief Compliance Officer and Corporate Secretary of Eloxx Pharmaceuticals, Inc. in 2018 (and Chief Operating Officer in 2020) and General Counsel, Chief Compliance Officer and Corporate Secretary of Acorda Therapeutics, Inc. in 2021. Neil went back to private practice in 2024. Neil has been lead counsel on dozens of IPOs (representing both issuers and underwriters) and multi-billion dollar M&A transactions. His practice includes licensing, structured finance, venture capital, risk assessment, corporate governance, legal and regulatory compliance, pharmaceutical development, and all aspects of corporate, securities, intellectual property, privacy and employment law. Education • J.D. - Quinnipiac University School of Law • LL.M. - Program in Securities Regulation at Georgetown University Law Center • M.A. - New York University • B.A. - Queens College of the City University of New York Admissions • New York, New Jersey, Connecticut • Southern District of New York • Eastern District of New York • District of Connecticut Publications • Frequent conference speaker (FEI, NACD, NIRI, ACC, PLI, MarcusEvans) • Co-authored chapter of NACD report on the Role of Directors in Strategic Planning, member of Blue Ribbon Commission of NACD • Authored various articles on securities, litigation and governance topics • Featured in Vanguard Law Magazine - https://www.vanguardlawmag.com/case-studies/neil-belloff-acorda-therapeutics/ Board Memberships • Former Board Member | Private computer network and software development company sold to NASDAQ listed company • Former Board Member | NASDAQ listed location-based entertainment company
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