An injunction is a court order requiring a person to do or cease doing a specific action. There are three types of injunctions: Permanent injunctions , Temporary restraining orders and preliminary injunctions . Temporary restraining orders (TRO) and preliminary injunctions are equitable in nature.
The purpose of injunctive relief is to prevent further harm to one or more individuals involved in a lawsuit. Generally, injunctive relief is available when a party's certain action(s) may cause irreparable harm to another party and when monetary compensation is not sufficient to address the wrongdoing.
The legal principle firmly maintains that injunctions are not awarded in cases where nuisance is uncertain. When there is ambiguity surrounding the presence or severity of a nuisance, the court abstains from providing injunctive relief.
The test for injunctions is still the three-part analysis from RJR-MacDonald Inc v Canada (Attorney General). The case must have a serious issue to be tried. Irreparable harm must occur if the injunction is not granted. The balance of convenience must favour granting the injunction.
In summary, an injunctive relief clause provides for urgent judicial enforcement of vital obligations that cannot await standard remedies or compensation without potentially irreparable harm.
HOW TO QUALIFY FOR AN INTERLOCUTORY INJUNCTION Is there a serious question to be tried? Will the party seeking the injunction suffer irreparable harm if the relief sought is not granted? Will granting the relief do more harm to the defendant than good for the plaintiff?
Prohibitory Injunctions: These are the most common type and essentially tell the respondent what they cannot do. This could include anything from contacting a specific person (the petitioner) to coming near their home, workplace, or even a certain distance from their children's school.
The applicant must establish a justiciable cause of action in order to obtain an injunction. Once he or she does so, the court may grant interim or interlocutory relief even if any final order will ultimately be granted by another court, tribunal or arbitral body, whether foreign or domestic.
A prohibitory injunction is the most common form of injunction, and directs a party to refrain from acting in a certain manner. Examples of a prohibitory injunction are cease and desist orders such as an order stopping a bulldozer prior to the razing of an historic building.
A temporary restraining order (TRO) is a common preliminary injunctive relief example. For instance, a court order placing the sale of a company on hold while a breach of fiduciary duty or a shareholder derivative lawsuit is ongoing.