Unfair Business Practices May Require the Strong Medicine of an Injunction

Dishonest business competitors sometimes take wrongful actions against their rivals that -- if left unchallenged—may permanently disrupt the operations and future survival of those businesses.  Examples of this kind of unfair conduct include hiring former employees who signed non-compete agreements, stealing client lists, disparaging or defaming a competitor’s product or service, or stealing or misusing of confidential company information or assets.

In many of these kinds of cases, a lawsuit for damages may not be productive at all.  Many times, the damage done by dishonest actions like these cannot be fixed by money damages. The real goal is to get the dishonest competitor to stop the unfair competition. The legal remedy to accomplish that is called an injunction.

Put simply, an injunction is a court order that orders someone from doing something.  If the order is disobeyed, the offending party could be held in contempt of court.  It can be very difficult to convince a court to issue an injunction.  First, a party seeking an injunction must file a lawsuit.  After the lawsuit is filed, the plaintiff then must request that the court issue an injunction.  The purpose of an injunction is to maintain the status quo until a final resolution of the case is achieved.

Courts consider a number of factors when considering an injunction.  These factors include:

1. The likelihood that the party requesting the injunction will ultimately succeed in winning the case.

2. If the party asking for the injunction will suffer irreparable harm if the injunction is not granted.

3. If others wills suffer harm if the injunction is issued.

4. If issuing the injunction will serve the public interest.

It is important to remember that these factors are not simply prerequisites that must be met.  Rather, they are part of a balancing test that courts will consider when determining whether issuing an injunction would be fair and equitable in a particular case.

Any business that is confronted with a damaging, unfair business practice by their competitors should immediately consult with legal counsel for direction regarding how to best proceed to protect their legal interests.