Commercial Injunctions

An injunction is a Court order requiring a person to do something or prohibiting a person from doing something.

An injunction is usually sought by a Claimant/Applicant against a Defendant/Respondent. Sometimes a party may seek an injunction as part of another dispute which is in Court either as a remedy or as part of the Court process. Examples are injunctions for access to premises to search for documents or preserve evidence. Either party may then apply as necessary.

An injunction is a discretionary remedy. This means the Court has to be persuaded to make it: no one has an automatic right to an injunction. In commercial matters (eg disputes between companies) urgent injunctions are usually granted by the High Court.

Interim injunctions
Where necessary a Court can grant an interim injunction without having a full trial. This may be done to preserve the position while the dispute between the parties is resolved either by negotiation or Court action.

How quickly can an Injunction be obtained?
An injunction can be obtained in a very short time indeed if that is necessary. For matters of the utmost seriousness it is possible to obtain an injunction within a day.

Injunctions as part of other Proceedings

Must the Defendant be told in advance?
If it is necessary to prevent injustice the Court may make an interim order against a party without that party being present at Court or even knowing in advance about the Order being asked for. This is called an "ex parte” or "without notice” injunction.

This will only be granted if the Court believes that it is necessary to protect the Claimant's position and that the Defendant might take irrevocable steps if notified in advance. An example might be where a company might move assets out of the jurisdiction of the British Courts.

If an injunction is made "without notice” then the Court will require papers served on the Defendant as soon as possible and will insist there be another hearing a very short time later - usually just a couple of days - which the Defendant has the right to attend and oppose the injunction if he wishes. If the injunction continues after that hearing the matter will proceed to a trial as set out above.

Undertaking in Damages
If a Claimant wishes to obtain an injunction - especially on a "without notice” basis - the Court will require the Claimant to give an undertaking in damages. This means that if the Defendant shows that no undertaking should have been made and that it has suffered loss as a result then the Claimant will pay damages to the Defendant to compensate it for the loss suffered.

Damages instead of an Injunction
The Court may order that instead of being subject to an injunction a Defendant shall pay damages to the Claimant. Or damages may be ordered in addition to a permanent injunction. The Court's decision will turn on the facts of each case.

Undertaking instead of an injunction
Sometimes a party may persuade the Court that it should simply give an undertaking - a solemn promise - to the Court. If this is accepted and then the promise is broken then penalties will apply.

Breach of an Injunction
If a party knows about an injunction and breaches it then that party will be in contempt of Court.

Where the party who is in breach is an individual he may face a fine, imprisonment for contempt or both. Where the party in breach is a company, then the company may be fined and directors may face imprisonment.

Clough & Willis - Injunctions
Clough & Willis has acted for companies facing injunctions and opposing them, in matters in the High Court in Manchester and the Royal Courts of Justice in London. Injunctions have been sought/ opposed in defamation, insolvency, patent and a variety of other commercial disputes

For help with any matter involving an injunction please contact Tim Gray at timothy.gray@clough-willis.co.uk