Nath Solicitors explain how strategic injunctions can save contracts, protect key assets, secure cashflow and maintain your commercial credibility
Most commercial disputes follow the standard lifecycle of litigation. This involves issuing proceedings and, where an out of court settlement can’t be found, a full trial of the issues before a judge. Before trial, extensive discovery of relevant documents takes place and the parties try to narrow down the key issues they wish the judge to adjudicate on.
But certain types of disputes demand immediate judicial intervention. Companies may suddenly face issues such as intellectual property infringement, breaches of non-compete agreements, or unauthorised disclosure of trade secrets. In such cases, prompt action is essential, and injunctions are often the most appropriate tool available. These are court orders prohibiting a person from doing something (‘prohibitory injunctions’) or requiring a person to do something (‘mandatory injunctions’). Below we highlight some ways injunctions can help your business.
Protecting Commercial Contracts
Injunctions play a crucial role in protecting commercial contracts, especially when urgent action is required to prevent irreparable harm. Consider the case of a company discovering that a departing director plans to disclose trade secrets to a competitor. The core terms of its confidentiality and non-compete agreements are then at immediate risk. While litigation may take months or years to resolve, the damage from such a breach could unfold in days. In these situations, if you obtain an injunction, it can help you to promptly enforce contractual obligations against the departing director and put them on notice that you will act if they breach their obligations to the company.
Maintaining Cash Flow and Protecting Assets
Injunctions can also be used to protect a company’s cash flow and assets during legal disputes. For example, where a company’s assets are at risk from the unlawful transfer of funds or assets, an injunction can immediately freeze assets or compel the party intending to transfer assets to refrain from certain doing so.
Maintaining Credibility
News travels fast, particularly in our social media age. Public opinion and client confidence in your business can change in an instant. It’s important therefore for a company to maintain a positive reputation wherever possible. False or defamatory statements, infringement of trademarks, or unauthorised use of content can cause long-term damage to a company’s image. Where there is an immediate and substantial threat to a company’s reputation, an injunction can be the fastest way to halt harmful conduct before it escalates.
Why Choose Nath Solicitors
At Nath Solicitors, we have a significant amount of experience of making applications for injunctions in a wide range of legal contexts. We also assist clients when an injunction they have obtained has not been complied with. If you need advice or assistance, please contact us on 0203 983 8278 or get in touch with the firm online.