How are injunctions used in bet-the-company litigation?
Minneapolis attorney Scott Benson of Briol & Associates shares the importance of injunctions during high-stakes litigation.
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So injunctions are an important part about the company litigation. In the first instance, they’re normally used to protect the status quo. In other words, if a business relationship is threatened, if disclosure of a trade secret is about to happen in a case, if the prime supplier for the company is threatening cutting off the supply of materials or goods to the company with which they can’t operate without that, those are cases in which injunctions can be used. Now, oftentimes, injunctions are only temporary in nature, so the injunction needs to be put in place in order to get through the litigation so that the court can determine what the rights of the parties are with regard to the issue that’s at stake in the litigation; so sometimes they can be temporary. In other cases that may be the whole point of the case, is to get a permanent injunction. A trade secret case is a perfect example. If an employee who’s leaving threatens to take a trade secret with them and divulge that to a competitor, in those cases, you want to get a temporary injunction and then get a permanent injunction, and that may be the whole point of litigation. So it can either be a temporary thing just to keep the status quo until the court can make a determination of the parties’ rights, or it can be the whole basis of the lawsuit to get that issue permanently resolved.