Injunctive relief: Overview, definition and example
What is injunctive relief?
Injunctive relief refers to a court-ordered remedy that requires a party to either do or refrain from doing specific actions to prevent harm or resolve a dispute. Unlike monetary damages, injunctive relief focuses on stopping ongoing or imminent harm rather than compensating for losses. Injunctions can be temporary, preliminary, or permanent, depending on the circumstances and the court's judgment.
For example, a business may seek injunctive relief to stop a former employee from using its trade secrets or violating a non-compete agreement.
Why is injunctive relief important?
Injunctive relief is important because it provides an effective legal tool to prevent irreparable harm that cannot be adequately remedied through monetary damages. In contractual relationships, injunctive relief clauses emphasize the parties' recognition that certain breaches (e.g., confidentiality violations) may cause significant damage, warranting immediate court intervention.
Including an injunctive relief provision in a contract ensures that parties can pursue this remedy without having to prove the inadequacy of monetary damages in court, streamlining the enforcement process.
Understanding injunctive relief through an example
A software company enters into a non-disclosure agreement (NDA) with a developer. The NDA includes an injunctive relief clause stating that unauthorized disclosure of trade secrets would cause irreparable harm to the company. When the developer shares confidential information with a competitor, the company seeks a court order to immediately stop further disclosures, relying on the injunctive relief provision.
An example of an injunctive relief clause
Here’s how an injunctive relief clause might appear in a contract:
“The Parties acknowledge that a breach of this Agreement involving confidential information, intellectual property, or other proprietary rights would cause irreparable harm for which monetary damages would not be an adequate remedy. Accordingly, the non-breaching Party shall be entitled to seek injunctive relief in addition to any other remedies available at law or in equity.”
Conclusion
Injunctive relief provisions are essential for protecting parties from significant harm that cannot be remedied by monetary compensation alone. By clearly addressing the availability of injunctive relief in contracts, parties can ensure swift action to prevent ongoing or imminent breaches. A well-drafted injunctive relief clause safeguards sensitive rights and promotes trust in contractual relationships.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.