Michigan

Factors Michigan Courts Will Review When Considering Requests for Injunctions

Unscrupulous businesses sometimes take unfair actions against their competitors that -- if left unchecked -- can permanently destroy the operations and future viability of those businesses. Such actions can include things such as stealing customer lists, hiring former employees who are restricted by non-compete agreements, product disparagement, or the misappropriation of confidential corporate information or assets.

In these types of situations, suing for damages may be a complete waste of time. Oftentimes, the damage done by these kinds of actions cannot be remedied by money damages. What is needed is to get the dishonest business competitor to stop the unfair competition. And, there is a legal remedy for that: an injunction.

An injunction is simply a court order preventing a party from doing something under the penalty of contempt of court. To obtain an injunction, a party must first file a lawsuit and then ask the assigned judge to issue the desired injunction. If granted, an injunction preserves the status quo until the court issues a final decision in the case.

When considering a request for injunction, a court considers a number of factors, including:

1. The chances that the party seeking the injunction will ultimately succeed on the merits of their case.

2. Whether the party seeking the injunction will suffer irreparable harm without obtaining the extraordinary relief that an injunction provides.

3. Whether granting the injunction will cause significant harm to others.

4. Whether the public interest is served by issuing the injunction.

It is important to keep in mind that these factors are a balancing test, they are not simple prerequisites that must be met. Rather, the purpose of these factors is for the court to consider, weigh and balance the equities in any given case.

Any business or entrepreneur who is faced with an unfair business practice that is damaging their business should immediately consult with a Michigan business litigation lawyer for advice on how to best proceed to protect their interests.

Full post as published by Michigan Business Lawyer Blog on December 03, 2008 (boomark / email).