Applying for an Injunction Order

Injunctions are court orders that can be utilised to prevent harm or safeguard the rights of individuals or businesses.

They are effective tools that can be used to halt ongoing harm or to secure the position of a party in anticipation of a legal conflict.

Injunctions are frequently sought in :-

• Corporate disputes between shareholders or directors involving asset stripping or information theft

• Employee competition cases where senior staff take confidential information or clients

• Intellectual property disputes to prevent ongoing infringement or loss of rights

• Contract breaches causing immediate damage to business relationships

• Tech disputes involving system access or data protection.

Prohibitory injunctions

A prohibitory injunction stops someone from doing something . Examples include :-

• Breach of contract - preventing ongoing violations causing immediate damage

• Misuse of confidential information - stopping unauthorized use of trade secrets

• Intellectual property infringement - halting counterfeit sales or patent violations

• Employee competition violations - enforcing restrictive covenants against former staff.

Mandatory injunctions

A mandatory injunction requires someone to actively do something such as :-

• Return property or data - compel return of misappropriated assets

• Specific performance - an order to comply with contractual obligations where damages are inadequate.

Third Party Orders

Orders against banks or other third parties holding assets or information. Commonly used alongside freezing orders to make them effective. Can require disclosure of account details or prevent asset transfers.

Freezing injunctions

A freezing injunction is a provisional order that prohibits a party from disposing of or dealing with their assets. It is a valuable strategic tool that can help to ensure that a defendant retains assets that can be enforced against if the claim is ultimately successful.

Injunctions to Search Premises for Assets or Evidence

A search order is a type of mandatory provisional order that requires a defendant to grant the claimant's representatives access to their premises to search for, duplicate, remove, and retain documents, information, or material. It is typically granted in support of intellectual property claims and other types of claims where there is a risk that evidence may be destroyed or disposed of before the trial.

On notice or without notice?

The process for submitting an injunction application will differ based on whether the application is to be made with or without notice to the other side.

• On-notice application - the applicant must provide the other party with notice of the application and the hearing date.

• Without notice application - the applicant does not provide the other party with notice of the application. This is only possible in urgent situations where it is essential to prevent irreversible harm.

Risks of applying for an injunction

Applying for an injunction is risky because if you lose, you'll typically be liable for the defendant's costs on an indemnity basis (higher than normal costs). You also must give a "cross-undertaking in damages" - essentially promising to compensate the defendant for any losses caused by the injunction if it turns out it shouldn't have been granted. This potential liability is unlimited.

Additionally, there's a duty of "full and frank disclosure" in without notice applications - if you fail to disclose relevant facts, the injunction can be discharged and you may face serious costs consequences and judicial criticism.

It is important to carefully consider the risks before applying for an injunction, as the costs of losing an application can be significant.