Whether a party is seeking a preliminary or permanent injunction, obtaining an injunction bond is a necessary part of the process. Just like with many surety bonds, speed is of the essence, especially if an attorney is attempting to obtain some type of injunctive relief for their client.
While the court may issue an injunction in the favor of a party, they will not make the injunction official until a bond is secured. This is because injunction bonds cover the cost of potential damage incurred by a party should the court rule that the other party was wrongfully enjoined or restrained.
In order to quickly obtain an injunction bond – and increase the likelihood of approval from the courts – it is essential to understand the factors that courts take into consideration when approving injunctions.
How Courts Address Motions for Temporary Injunctive Relief
In order for a court to approve injunctions and temporary restraining orders (TROs), one or more of five key factors will be taken into consideration (not all must be addressed). The five-factor test that the court applies, known as the Dahlberg Factors, stem from the case: Dahlberg Bros., Inc. v. Ford Motor Co., 272 Minn. 264, 137 N.W.2d 314, 321-22 (Minn. 1965).
These factors include:
- The relationship between the parties.
- The comparative harm to the parties. Failure to show irreparable harm to the moving party is grounds to deny an injunction.
- The moving party’s likelihood of success on the merits of the injunction.
- The public’s, and public policy’s, interests in the case.
- The burdens placed on the court by administering said injunction.
For Example: Non-Compete Agreements
The process of obtaining an injunction bond in a case that involves an employee’s violation of a non-compete agreement would involve the court ascertaining:
- What the relationship between the employer and employee was.
- The harm the employer will suffer if the injunction is not approved.
- The chances of success and the merit behind the employer’s injunction.
- How, if at all, this injunction will affect public policy or the general public.
- How administering this injunction will affect the court.
Getting an Injunction Bond Quickly
Attorneys must act quickly to get their bonds through the underwriting process so that their client’s injunctions can be implemented, and eventually properly resolved. It all begins with getting the right injunction bond set up for a client.
Contact the Patrick J. Thomas Agency today to immediately begin your injunction bond application process.
Disclaimer: this is for informational purposes only and is not intended to be legal advice. If you need legal counsel, please contact an attorney directly.