Injunctive Relief in Breach of Contract Claims

When a party to a business contract does not fulfill their obligations, the other party can seek remedies through a breach of contract claim. A notion many people have is that a claimant in a breach of contract claim is only eligible for monetary damages. Indeed, monetary damages are a common form of relief in breach of contract cases. However, sometimes, financial compensation alone is not enough. In some situations, it is necessary for a non-breaching party to pursue other forms of relief. In a case where monetary damages are insufficient, injunctive relief is another form of relief the non-breaching party may pursue. This article briefly discusses injunctive relief in breach of contract claims.

What is Injunctive Relief?

Injunctive relief in a breach of contract claim is a court-ordered legal remedy whereby the court orders a party to either do something or refrain from doing something. Injunctive relief is sought when a breach of contract threatens to cause irreparable harm that can’t be adequately compensated by monetary damages. Injunctive relief can help safeguard the interests of the non-breaching party and prevent additional harm.

Types of Injunctive Relief

There are three types of injunctive relief, as discussed below;

• Temporary Restraining Order (TRO): This is an order granted by the court before a final determination is made in the case. A TRO is issued to maintain the status quo until a more formal hearing is held. This order is necessary to prevent the adverse party from causing irreparable harm. A claimant may request a TRO without notice to the offending party.
• Preliminary Injunction: A preliminary injunction can restrict the same behavior as a TRO, but it remains in force until the court revokes it.
• Permanent Injunction: A permanent injunction is granted as part of the final judgment in a case.

What Must Be Shown for the Court To Grant Injunctive Relief?

Courts are usually wary of granting injunctive relief. For the court to grant injunctive relief, the claimant must prove that without the injunction, they would suffer “irreparable harm.” The harm must not only be irreparable but also imminent. Imminent means that the harm is about to happen or is likely to occur very soon. Such a situation requires immediate attention or action.

Other Types of Remedies in Breach of Contract Claims

In breach of contract cases apart from injunctive relief and monetary damages, the court may award other forms of remedies. First, the court may order the breaching party to perform their obligations as originally stipulated in the contract. This option is often used when the subject matter of the contract is unique and cannot be easily replaced by monetary compensation. This is known as specific performance. Second, the court may cancel the contract or declare it null and void, thus releasing the parties from the agreement. This is known as rescission. Rescission is used when there has been a fundamental breach or misinterpretation that invalidates the contract. The purpose of rescission is to return the parties to their pre-contractual positions.

Contact a Silicon Valley Business Attorney at SAC Attorneys

Our experienced business attorneys at SAC Attorneys LLP can help you with your breach of contract claim. We work to protect our clients’ rights. We can provide expert legal representation through every step of the legal proceedings. Contact us today to schedule a consultation.