Corporations face challenges every day, and most can be addressed over time. But when an ongoing situation presents the threat of irreparable harm to the company, immediate action in the form of a restraining order is often the best solution.
Though the public may associate restraining orders with situations involving the threat of personal harm, corporations are also vulnerable to the type of permanent and irreversible damage done by the theft of intellectual property or violations of contracts or law. Unlike actions that have occurred in the past, ongoing or planned actions can be stopped through injunctive relief in order to prevent further harm.
When a corporation is facing this type of threat, it can file a motion with the courts to have a restraining order put in place, temporarily stopping the perpetrator from continuing their action until a further hearing can be held to assess the situation on a more permanent basis. By doing so, the corporation is essentially telling the court that the situation is so urgent that if the action being pursued by the defendant isn’t stopped immediately their business will suffer irreparable harm.
Not every petition for a restraining order is successful. The courts have established a high bar that corporations have to meet in order to establish that they will suffer damages that cannot be addressed by having damages paid to them at a later date. The court requires that the plaintiffs requesting the restraining order show not only that the harm that they would suffer cannot be compensated by imposing financial penalties on the defendant, but also that the harm they would suffer would be greater than that suffered by the defendant by virtue of having their actions halted. They also need to show that they have a high likelihood of eventually winning the case for a permanent injunction.
Filing a petition for a restraining order is a significant legal step, and it is important that any corporation pursuing this course of action is represented by attorneys with significant experience and a record of success. For information on our firm’s aggressive action on behalf of our clients, contact us today to set up a time for us to discuss your situation.