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Chancery Finds Lack of Support for Heightened Standard for Mandatory Injunction but Allows Expedited Proceedings

By Francis G. X. Pileggi, Esq.

In Alpha Natural Resources, Inc. v. Cliff’s Natural Resources, Inc., (Del. Ch., November 6, 2008), read opinion here, the Chancery Court observed that in addition to the conventional prerequisites that must be satisfied before a “prohibitory preliminary injunction” will issue, when a “mandatory injunction” is requested, seeking affirmative corrective or remedial action to be taken, it: “requires, in addition, a showing that the petitioner is entitled as a matter of law to the relief it seeks based on undisputed facts.” (emphasis added). This appropriately heightened standard for a rare form of relief was not satisfied in this case at this early stage.

The court also discussed the standard for granting expedited proceedings and granted that motion based on the threat of irreparable harm that was presented.

The issues decided in this case are two very important tools for a business litigator's toolbox.

Full post as published by Delaware Corporate and Commercial Litigation Blog on December 12, 2008 (boomark / email).