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.
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.
Company Dissolved? Legal and Financial Consequences to Expect
A company is dissolved; legally, it ceases to exist. Accordingly, dissolution results in significant legal and financial consequences. It is a process that must be properly managed to avoid continuing liability. The Corporate Dissolution Process Corporate dissolution is the legal process of formally closing a corporation, paying its debts and distributing the remaining assets. Most […]
The Legal Implications of Signing a Triple Net Lease
A triple net lease is a commercial lease in which the tenant pays the property’s real estate taxes, insurance, and maintenance costs, known as the three nets, in addition to base rent. They are most often used in freestanding retail and office buildings and in large single-tenant industrial properties, with terms that typically run 10 […]
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
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!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
