Make Sure You Can Afford to Pay a Bond Before Seeking an Injunction
In order to obtain a an injunction under federal law, the moving party has to show each of the following:
(i) It has a likelihood of success on the merits of its claim.
(ii) Without injunctive relief, it would risk suffering irreparable harm.
(iii) Such harm outweighs the irreparable harm that the non-moving party would suffer if an injunction were to enter.
(iv) Entering an injunction is in the public interest.
In addition, however, Rule 65(c) of the Federal Rules of Civil Procedure states that:
The court may issue a preliminary injunction or a temporary restraining order only if the movant gives security in an amount that the court considers proper to pay the costs and damages sustained by any party found to have been wrongfully enjoined or restrained.
Indeed, as a recent case from the District of Massachusetts confirms, this is no small technicality, and something to which any company should give due consideration before having its outside litigation counsel seek injunctive relief.… Keep reading