FORT LAUDERDALE BUSINESS LITIGATION: INJUNCTIONS IN BUSINESS DISPUTES

Injunction are one possible remedy in business disputes. An injunction is an equitable remedy that requires a party to perform certain acts or prohibits a party from performing certain acts. “An injunction is for the most part preventive, and cannot ordinarily be employed to correct a wrong already done or restore to a party rights of which he has been deprived.” South Dade Farms, Inc. v. Peters, 88 So. 2d 891 (Fla. 1956). There are different types of injunctions – preliminary, temporary, and permanent. Preliminary and temporary injunctions are issued during pendency of the lawsuit “to preserve the status quo in order to prevent irreparable harm from occurring before a dispute is resolved.” Camji v. Helmsley, 602 So. 2d 617 (Fla. 3d DCA 1992). On the other hand, permanent injunctions are issued at the lawsuit’s conclusion. Parties to a business dispute should consider whether an injunction is a possible remedy. The Fort Lauderdale business litigation attorneys of the Mavrick Law Firm represent businesses and their owners in breach of contract litigation and related claims of fraud, non-compete agreement litigation, trade secret litigation, trademark infringement litigation, employment litigation, and other legal disputes in federal and state courts and in arbitration.

A party must establish the following elements to obtain a preliminary injunction: “(1) irreparable harm to the moving party, (2) unavailability of an adequate legal remedy, (3) a substantial likelihood of success on the merits, and (4) the public interest is supported by entering the injunction.” Surgery Center Holdings, Inc. v. Guirguis, 318 So. 3d 1274 (Fla. 2d DCA 2021). The elements for a permanent injunction are similar, requiring a plaintiff to prove “a clear legal right has been violated, irreparable harm has been threatened, and there is a lack of an adequate remedy at law.” Dep’t of Health and Rehab. Services of State of Fla. v. Weinstein, 447 So. 2d 345 (Fla. 4th DCA 1984). The lack of an adequate remedy at law means that money damages are unavailable or substantially difficult to determine. See Smart Pharmacy, Inc. v. Viccari, 213 So. 3d 986 (Fla. 1st DCA 2016) (finding that the litigant did not have an adequate remedy at law because monetary damages were difficult to ascertain).

In business disputes, injunctions commonly arise from the breach of a restrictive covenant. Restrictive covenants include non-compete provisions, non-solicitation provisions, and confidentiality provisions. Florida Statute § 542.335 expressly permits to enjoin those who violate restrictive covenants. Moreover, “[t]he violation of an enforceable restrictive covenant creates a presumption of irreparable injury to the person seeking enforcement of a restrictive covenant.” Fla. Stat. § 542.335.That said,the restrictive covenant must be supported by a legitimate business interest such as a trade secret, extraordinary or specialized training, or customer goodwill. In Atomic Tattoos, LLC v. Morgan, 45 So. 3d 63 (Fla. 2d DCA 2010), the court upheld a preliminary injunction prohibiting the violation of a restrictive covenant. A business entered into agreement with the defendant containing a non-compete provision. The defendant violated that provision by opening his own competing business. The Court held that the business provided extraordinary training to the defendant, and, therefore, the business had a clear legal right to the injunction.

Injunctions are not limited to restrictive covenants violations. For example, in Park Avenue BBG & Grille of Wellington, Inc. v. Coaches Corner, Inc., 746 So. 2d 480 (Fla. 4th DCA 1999), the Court issued an injunction prohibiting a restaurant from airing live sports programming to its patrons. A sports bar had a contract with its landlord prohibiting any other tenant in the same shopping center as the sports bar from showing live sports. The landlord violated this provision by allowing a restaurant in the same shopping center to show live sports. The sports bar then filed a lawsuit for injunctive relief to prohibit the restaurant from showing live sports. The court agreed and enjoined the restaurant from showing live sports.

As you can see, injunctions are available in a wide variety of commercial disputes. You should consult counsel to determine whether such an injunction is available in your particular dispute.  

The Fort Lauderdale business litigation attorneys of the Mavrick Law Firm represent businesses and their owners in breach of contract litigation and related claims of fraud, non-compete agreement litigation, trade secret litigation, trademark infringement litigation, employment litigation, and other legal disputes in federal and state courts and in arbitration.