![]() Using Injunctions to Protect Your Business going rogue and derailing your business keeps you up at night, you are not alone. In the world of commercial litigation, the balancing act in supply chains, exclusive dealing contracts and just-in-time delivery plans makes for a perfect storm when a supplier wants to exact (or coerce) a better deal "or else." The "or else," of course, is a breach of contract, which your business would have to litigate in court. And the thought of court probably keeps you up at night, too. Is there a procedure to shelter from that storm? Yes. Enter the injunction. Are They Useful Tools? which if granted results in a court order that requires and/or prohibits an opposing party from doing specific acts. It is a powerful tool that can be utilized in many contexts: especially, supply chain/Uniform Commercial Code (UCC) cases and commercial litigation. Injunctions are especially useful in supply chain/UCC matters. Supply chains often involve several different companies working together including suppliers, manufacturers and retailers, to produce and/or distribute a specific product. When disputes arise that threaten the continuity of the supply chain, it can have substantial impact on the companies involved, their employees and the public at large. Accordingly, injunctions can be a powerful tool in preserving the status quo. While interruptions in supply chain management may pose the most there are several other instances where injunctive relief can be used to protect a company's legitimate business interests. In cases involving unfair competition, tortious interference or breach of restrictive covenants, a company may seek a preliminary injunction at the beginning of its case to prevent the harmful action from continuing throughout the lengthy litigation process. A preliminary injunction can be used to prevent systematic employee raiding by a competitor (Tata Consultancy Servs v Systems Int'l, 31 F3d 416 (CA 6, 1994), a breach of a non-compete or non-solicitation agreement by a former employee (Id), or the unfair/illegal transfer of trade secrets (Johns-Manville Corp. v. Guardian Indus. Corp., 586 F. Supp. 1034, 1074 (ED Mich. 1983). Preliminary Injunction your case? In most states and in federal courts, there are four factors to be balanced: the court must estimate the legal strength of your claim. A plaintiff must demonstrate with the facts available that it is likely to prevail in its claim as a matter of law. This is often the most difficult hurdle in obtaining injunctive relief because many of the facts may not be available to the plaintiff at the outset of the case. contractor liability and commercial litigation. He is a registered patent attorney with experience in patent, trademark and copyright litigation and commercial litigation. mercial litigation and divorce and custody litigation. 322 West Lincoln Royal Oak, Michigan 48067 248.544.1191 Fax msmith@cardellilaw.com vgujuluva@cardellilaw.com jpaine@cardellilaw.com cardellilaw.com |