Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

How Do Temporary Restraining Orders Help in Business Disputes?

Author: Robert E. Levy

Date: May 27, 2016

Key Contacts

Back

Whether the company needs to prevent assets from being moved out of state or keep an aggrieved employee from disclosing proprietary business data, temporary restraining orders (TRO) are often the best course of action.

Many small business owners are unaware that restraining orders are not limited to domestic matters. Rather, businesses can also ask the court to grant immediate emergency relief. With the assistance of counsel, businesses can seek a TRO when filing their initial complaint with the court. Once granted, a TRO prohibits the defendant from taking certain actions until the return date of the Court’s Order to Show Cause. 

Temporary Restraining Orders

The plaintiff can seek to continue the court order via a preliminary injunction, which may be granted after the parties have both had an opportunity to submit affidavits, documents and other evidence to the court in support of their respective positions. If issued, the preliminary injunction will often remain in place until final judgment.

Pre-reqs for Granting Temporary Restraining Orders

Under New Jersey law, courts will take a number of factors into consideration when determining whether to grant a temporary restraining order. They include:

  • Irreparable harm: The court will not issue a TRO unless the plaintiff can show that an injunction necessary to prevent irreparable harm. Thus, in cases where monetary damages will make the plaintiff whole, the court is unlikely to grant the restraining order.
  • Likelihood of success: The plaintiff must also show that there is a reasonable probability it will succeed on the merits. This requires demonstrating that the legal principles and material facts underlying the claims are well-settled.
  • Balance of hardships: The court will also weigh the relative hardships to the parties. Accordingly, plaintiffs must show that they will suffer serious harm if an injunction does not issue, and, conversely, that the requested relief will have little or no effect upon the defendant.
  • Public interest: Where relevant, the court may also consider the public’s interest in determining whether an injunction should issue.

Benefits of Temporary Restraining Orders

Given that many New Jersey business lawsuits take years to go to trial, temporary restraining orders can be invaluable in preventing further harm.

In environmental litigation, TROs can be used to prevent further contamination of a property. With regards to safeguarding intellectual property, a TRO can restrain the defendant from further infringing a trademark or copyright. In an employment lawsuit, a TRO can be used to enforce the terms of a nondisclosure or non-compete agreement.

In any case, it is imperative to act quickly. In addition to protecting your legal rights, pursuing a TRO as soon as possible shows the court that the situation truly warrants “emergency” relief.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy post image

“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy

A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]

Author: Sean M. Pena

Link to post with title - "“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy"
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders post image

Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders

Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]

Author: Nicholas Wall

Link to post with title - "Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders"
Navigating Disputes: Hire a Partnership Dispute Lawyer post image

Navigating Disputes: Hire a Partnership Dispute Lawyer

A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]

Author: Jay McDaniel

Link to post with title - "Navigating Disputes: Hire a Partnership Dispute Lawyer"
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know post image

Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know

When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]

Author: John D. Giampolo

Link to post with title - "Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know"
Zoning Laws Explained: What You Need to Know Before Buying Property post image

Zoning Laws Explained: What You Need to Know Before Buying Property

Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]

Author: Wendy Rubinstein Quiroga

Link to post with title - "Zoning Laws Explained: What You Need to Know Before Buying Property"
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future post image

Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future

For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]

Author: George McGowan

Link to post with title - "Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!