Injunctive Relief: Legal Remedies for Business Owners 

Falling into a commercial dispute can disrupt your business and be a timely and expensive process. It is always best to resolve this without commercial litigation, for example, through an alternative dispute resolution (ADR) method. Unfortunately, however, some business disagreements require urgent action before further damage occurs. Therefore, you may decide that court proceedings are the best option. If so, you may consider injunctive relief for specific action through a court order as a legal remedy for the urgent action. This article will, therefore, explain injunctive relief as a legal remedy for business owners. 

What is Injunctive Relief?

Injunctive relief is a legal remedy during a business dispute and potential court litigation. You can apply for an injunction, which is either:

• mandatory, which makes the other party do something; or
• prohibitory, which prevents them from doing something. 

For example, a mandatory injunction could require the other party to deliver services, and a prohibitory injunction could prevent them from releasing confidential information about your business. 

There are different types of mandatory and prohibitory injunctions. Mandatory injunctions consist of, for example, a search order. Examples of prohibitory injunctions include:

• insolvency inductions;
• privacy injunctions; and 
• freezing injections.

Your solicitor can explain the different types of injunctive relief and which you should request. 

When Might My Business Apply for Injunctive Relief?

Although you may apply for an injunction, a court does not have to grant one. This is because injunctive relief is a discretionary remedy. However, you may apply for injunctive relief where it is crucial another business does or does not do something, such as not posting defamatory comments about your business on social media. 

You may be in a business dispute and court proceedings and can apply for injunctive relief before these begin. This is because injunctions are usually an urgent form of legal remedy. If you apply for an injunction before the court decides your case, it is an interim injection. You can make this with notice or without notice, meaning depending on which you use, the other party will be or will not be told in advance that you have applied for one. However, if relief is granted, the injunction is not temporary but will become final or perpetual. 

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What is the Cost of Injunctive Relief?

It is essential to consider whether injunctive relief is a suitable legal remedy for your commercial dispute. Applying for an injunction is a costly process. It will involve getting a barrister as part of your legal representation, and costs will vary depending on the circumstances of your commercial dispute. Where your application for injunction fails, you will incur cost consequences. 

Can Injunctions Be Enforced?

Once a business or individual is issued with an injunction, they must abide by it as a breach of an injunction is unlawful. Breaching an injunction can mean contempt of court and can result in a prison sentence. It can also result in:

• a fine (money damages); or
• confiscating the respondent’s assets. 

If you are granted injunctive relief, the injunction will have a ‘Penal Notice’ accompanying it. This will state the consequences of a breach, which usually includes an application for committal. 

Can Injunctions Be Challenged?

The respondent may challenge the injunction application if a court grants your business injunctive relief, which is their legal right. If the injunction was issued ‘without notice’, the respondent can challenge it to be set aside at any point, provided they give the other party 24 hour’s notice. Where the injunction was granted ‘on notice’, the respondent can challenge it at any point. They do this by applying to the court to appeal it. 

It is also possible to request for an injunction to be varied. This is something the respondent may do where the likelihood of being able to set it aside is low. You can agree on a variation of injunctive relief between you and the other party rather than needing to go through the court. For example, a freezing injunction may be varied which freezes the other party’s assets in terms of how many assets are frozen. 

Key Takeaways

If you are part of a commercial dispute which you urgently need action on you may consider injunctive relief during proceedings. This is a legal remedy for an injured party, which can make someone do something (mandatory prohibition) or prevent them from doing something (prohibitory injunction). It is an expensive process. You can apply for an injunction prior to court proceedings, which is an interim injunction, which then becomes a final or perpetual injunction, so not temporary. 

Injunctions can be enforced, and their nature helps with this, as breaching them is an offence that can result in a prison sentence. The penal notice accompanying an injunction will detail the consequences of a breach. It is impossible for the respondent of an injunction to challenge it, which can include requesting that it be set aside. Challenging an injunction is difficult, so it is more likely that a respondent will apply for a variation.

If you need help understanding injunctive relief, our experienced disputes and litigation solicitors can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. So call us today on 0808 196 8584 or visit our membership page.

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