Contract Disputes Involving Imminent or Ongoing Harm: Seeking Preliminary Injunctive Relief

While complex contract disputes can take months, or even years, to resolve, sometimes companies don’t have time to wait. If your company is facing imminent or ongoing harm, obtaining relief immediately could be critical for protecting your company’s interests now and in the future. Depending on the circumstances, this may involve hiring a Miami breach of contract lawyer to seek a preliminary injunction.

A preliminary injunction is a court order that, generally speaking, is intended to preserve the status quo. It doesn’t resolve the parties’ dispute, but rather seeks to ensure that neither party will be disadvantaged by the time it takes to navigate the dispute resolution process. Seeking preliminary injunctive relief can be advisable (and necessary) in various circumstances—and, when it is necessary, it is imperative that companies act quickly to seek the relief they need before it’s too late.

When Companies Can (and Generally Should) Seek Preliminary Injunctions in Contract Disputes

Companies that are facing contract disputes can seek preliminary injunctions to protect various interests in a wide range of circumstances. Generally speaking, it is possible to seek a preliminary injunction to prevent both imminent (or threatened) and ongoing harm—although, in the case of threatened harm, timing can become a key consideration. If a potential dispute isn’t “ripe” for consideration, the court won’t be able to render a decision. At the same time, however, waiting too long to seek relief can lead to harm that could—and arguably should—have been prevented.

One of the key aspects of preliminary injunctive relief is that it is available when monetary damages are unlikely to be a sufficient remedy. If awarding damages through litigation or alternative dispute resolution (ADR) would be enough to make the aggrieved party “whole,” then an award of preliminary injunctive relief may not be warranted.

With this in mind, some examples of issues that may warrant a request for preliminary injunctive relief include:

• Violation of a confidentiality clause or non-disclosure agreement (NDA)
• Violation of a non-competition or non-solicitation clause
• Unauthorized use or disclosure of trade secrets
• Unauthorized use of trademarks or corporate branding
• Substandard performance or substation of inferior materials

Again, these are just examples—and these won’t necessarily provide grounds to seek preliminary injunctive relief in all cases. As a general rule, company owners and executives should err on the side of caution, and if you have questions about seeking a preliminary injunction, you should consult with a Miami breach of contract lawyer promptly.

Can You Seek a Preliminary Injunction if Your Contract Includes a Mandatory ADR Clause?

Many commercial contracts include mandatory ADR clauses that require the parties to submit any disputes to mediation or arbitration. If your company’s contract has a mandatory ADR clause, can you still seek preliminary injunctive relief in court?

The short answer is, “It depends.” Oftentimes, mandatory ADR clauses will include exceptions for circumstances in which preliminary injunctive relief is necessary. Even when this isn’t the case, courts may still have the authority to grant preliminary injunctive relief “in aid of” pursuing permanent remedies through ADR. Here too, consulting with an experienced Miami breach of contract lawyer promptly is a key first step toward making informed and strategic decisions.

How Do You Seek a Preliminary Injunction When Necessary?

As alluded to above, seeking a preliminary injunction in connection with a commercial contract dispute involves going to court. Companies seeking preliminary injunctive relief must engage legal counsel to prepare and submit the necessary filings on their behalf.

Along with satisfying the procedural and technical requirements for seeking a preliminary injunction, companies’ filings must make a substantive case for why preliminary relief is warranted. When considering requests for preliminary injunctions, federal courts generally consider the following factors:

• Likelihood of Irreparable Harm – Demonstrating that monetary damages are unlikely to be a sufficient remedy involves demonstrating a likelihood of irreparable harm. This could be in the form of harm to the company’s reputation, loss of goodwill, or loss of control over the company’s confidential information or intellectual property.
• Likelihood of Success on the Merits – While a company seeking a preliminary injunction doesn’t need to be able to fully prove its case at this stage, it must be able to demonstrate a likelihood of success if the case were to go to trial. Experienced litigation counsel should be able to assist with meeting the relevant burden of proof.
• The Balance of Equities and Hardships – Given that a preliminary injunction can be awarded without fully proving the plaintiff’s case, judges must consider the balance of equities and hardships as well. In essence, it must be clear that granting the relief requested is the fairest approach under the circumstances at hand.
• The Public Interest – A party seeking a preliminary injunction must also be able to demonstrate that granting the injunction would be in the public interest. In this context, the “public interest” is a fairly amorphous concept, and judges may address various considerations based on the potential broader implications of granting the relief requested.

State courts generally focus on similar considerations—though it is imperative that a request for injunctive relief is tailored to the specific factors considered in the relevant jurisdiction. In all cases, however, the overarching focus is on what (if anything) is necessary to preserve the status quo while the parties seek a final resolution to their dispute. With this in mind, parties seeking preliminary injunctions must craft their requests carefully, and they must work closely with their legal teams to ensure that their lawyers have the information they need to present the strongest argument possible.

Discuss Your Company’s Case with a Miami Breach of Contract Lawyer at Edelboim Lieberman

If you need to know more about seeking a preliminary injunction in connection with a commercial contract dispute in Florida, we invite you to get in touch. To speak with an experienced Miami breach of contract lawyer at Edelboim Lieberman in confidence as soon as possible, call 305-768-9909 or tell us how we can reach you online now.