Before you will be granted an injunction in a civil court, you will usually be required to promise that if a person suffers damage as a result of a successful injunction, that that person will pay compensation for the loss. Are you really ready to do this?
A court will generally require the applicant to give an "undertaking as to damages" before it makes an injunction. The meaning of this term in the Federal Court is here. The range of matters for which damages can be sought can be very wide indeed. For example, if you seek to prevent the sale of real property, there could be possible claims for damages from the following:
- from the vendor - because, for example, it had entered into a contract of sale for a high price and that contract was lost because of an injunction
- from the purchaser - because, for example, it did not get the property and had to purchase another property.
If you are not prepared to give this undertaking, then an injunction should not be considered.
Separately, an injunction is an extraordinary remedy. It is asking the Court to intervene to require someone to do, or refrain from doing something. The granting of injunctions are subject to strict rules and are not granted as a matter of course. They are only granted in exceptional circumstances. Even if you case is otherwise meritorious, the fact that you have delayed in bringing a proceeding (for example) may be enough to prevent you obtaining an injunction.
Some recent examples of cases where injunctions have been applied for:
- restraining banks from paying out under performance guarantees
- restraining people from making statements about others
- breach of copyright
We have run a number of injunctions this year and can advise you if you need help.
This text is subject to our disclaimer.