What Is Your Legal Strategy for Opposing An Order to Show Cause Seeking Injunctive Relief? I have written many articles about the benefits of injunctive relief when faced with a parnership dispute. Typically‚ the party seeking injunctive relief is a "weaker partner" or a "minority shareholder" and the lawsuit seeking injunctive relief is designed to pressure the majority or controlling shareholders and partners. However‚ many times we represent the controlling partner or shareholder in opposing an order to show cause. This afternoon‚ we successfully opposed a motion where a 50% partner sought an injunction related to "access to books and records"‚ "injunctive regarding separate and distinct business opportunities" and an "accounting". During the hearing a couple of interesting points came up:
STRATEGY POINT: If you are opposing a partnership or shareholder injunction and order to show cause‚ you must recognize that your own "affidavit" will be critical. So‚ both you and your attorney must focus on submitting a detailed affidavit explaining why an injunction is improper and why a court should not interfere with the operations of your buisness.
STRATEGY POINT: Irreparable harm is difficult to establish and to properly defend against an injunction both you and your attorney must focus on this factor. Your argument (without admitting or acknowledging liability) may bvery well focus on the fact that even if the plaintiff proves his or her case then he or she may be compensated / made whole by monetary damages at a later date.
When it comes to partnership and shareholder disputes and injunctions‚ many times‚ a good defense may be focused on the procedures that your partners attorney has overlooked. Many times these "procedural defenses" are no small thing and may translate into a significant success in your case.
Category: Partnership Disputes
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