What is an 'Injunction'

An injunction is a court order requiring a person or entity to either cease doing or do a specific action. There are three types: temporary restraining orders, preliminary injunctions and permanent injunctions. Restraining orders and preliminary injunctions are typically issued early in a legal action when the court agrees that doing so may prevent harmful actions by a defendant. Restraining orders are often used to prevent a defendant from having contact with a plaintiff. Preliminary and permanent injunctions are issued based on evidence presented by a plaintiff in a civil case.

BREAKING DOWN 'Injunction'

An example of a preliminary injunction might be when a married couple owns a business, is going through a divorce, and there is a dispute as to who owns or controls the business. If the husband tried to make unilateral business decisions, the wife might file for a temporary injunction to prevent certain business activities until the court decided the ownership issue.

Injunctions are also used by a court when monetary restitution isn't sufficient to remedy the harm. For example, in addition to making a financial judgment against a defendant, a court might issue a permanent injunction ordering that the defendant not participate in a certain activity or business.

Obtaining an Injunction

In order to be granted a temporary injunction, a plaintiff typically needs to show the court that they have a likelihood of prevailing on the merits of their case, can show potential injury if the injunction is not granted, can demonstrate that the potential injury outweighs whatever damage the injunction may cause the opposing party, and that the benefit or harm to the parties is equitable.

In order to be granted a permanent injunction, the plaintiff will need to demonstrate having suffered an irreparable injury, that monetary damages alone are not adequate, that the order is warranted considering that balance of hardships between the parties, and the order would not harm the public interest.

  1. Class Action

    A class action is a legal proceeding in which one or several ...
  2. Petition

    A petition is a legal document formally requesting a court order, ...
  3. Joint and Several Liability

    Joint and several liability is a legal instance where multiple ...
  4. Collateral Source Rule

    The collateral source rule prevents the reduction of damages ...
  5. Quasi Contract

    A quasi contract is a legal agreement created by the courts between ...
  6. Covenant Not To Execute

    A covenant not to execute is a lawsuit agreement in which the ...
Related Articles
  1. Insights

    UPS Union Files Injunction (UPS)

    The union representing air maintenance workers at UPS has filed an injunction over the use of lifts.
  2. Investing

    The Basics of Trading a Stock: Know Your Orders

    Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
  3. Tech

    Alibaba Blasts Alibabacoin with Trademark Lawsuit

    The Chinese e-commerce company Alibaba has not taken kindly to the efforts of a startup cryptocurrency to capitalize on its brand.
  4. Insights

    Madoff Judge Blocks Lawsuit Attempt

    A federal judge has halted the efforts by a liquidating trustee to recover funds from an associate.
  5. Insights

    So, You Want to Take Your Broker to Court

    Find out how to file a claim with your broker, and what you can expect throughout the process.
  6. Insights

    Immigration: A High-Stakes Game For US Elections

    We look at why the immigration issue is important going into the presidential election, and the position of both parties.
  7. Insurance

    4 Tips for Negotiating an Insurance Settlement

    It is possible to negotiate your own insurance settlement, especially when the injuries are relatively minor and the other party’s fault is obvious.
  1. How do I place an order to buy or sell shares?

    Read a brief overview of how to open a brokerage account, how to buy and sell stock, and the different kinds of trade orders ... Read Answer >>
  2. What's the difference between a stop and a limit order?

    A limit order is an order that sets the maximum or minimum at which you are willing to buy or sell a particular stock. With ... Read Answer >>
  3. What is the difference between a buy limit and a stop order?

    Learn the difference between buy limit orders and stop orders, including stop loss orders, and understand the risks of the ... Read Answer >>
Trading Center