Harper James is a UK full-service commercial law firm advising businesses under the laws of England and Wales, including on commercial disputes. An interim injunction is a temporary court order made before a dispute reaches trial. It is intended to prevent a party from taking a specified step, or require it to take one, while the court determines the underlying issues.
A prohibitory injunction prevents conduct, such as using confidential information, disposing of disputed assets or continuing an alleged breach of contract. A mandatory injunction requires positive action, such as returning property or restoring access to a system. Related orders include freezing injunctions, which restrict dealings with assets, and search orders, which preserve evidence in appropriate cases. These remedies are separate from a final injunction, which is normally considered after the evidence has been tested at trial.
The court generally applies the principles from American Cyanamid Co v Ethicon Ltd. The applicant must show that there is a serious issue to be tried. The court then considers whether damages would be an adequate remedy, where the balance of convenience lies, and whether maintaining the existing position is appropriate. The applicant usually gives an undertaking to compensate the respondent for loss caused by the injunction if the order is later found to have been unjustified.
An application is supported by evidence explaining the dispute, the threatened harm, the urgency and the order sought. The applicant normally gives notice to the respondent, although the court can make an order without notice in exceptional circumstances. A without-notice applicant must disclose material facts, including matters that weaken its own case, and a further hearing is usually arranged so the respondent can present its position.
The practical risks are significant. The court may require security for the undertaking in damages, and an order must be drafted precisely so the parties understand what conduct is prohibited or required. Breaching an injunction can amount to contempt of court, with serious consequences. Businesses therefore need to preserve relevant documents, assess the commercial effect of the order and consider whether negotiation or an expedited trial is more proportionate than interim proceedings.