John Ogilvie & Tom Webb explain how & when the courts will enforce non-compete provisions by injunction
Interim injunctions are frequently sought by commercial parties to prevent proposed transactions which are allegedly in breach of existing contractual obligations.
They are often sought in circumstances of urgency and are intended to preserve the status quo, ie to stop a transaction from occurring or being carried into effect, pending a full trial as to the merits of the allegations of breach.
Injunctions are discretionary remedies. There are several considerations which the court will take into account when deciding whether to grant an interim injunction:
Is there a serious question to be tried should it be established at a later date that the injunction should not have been granted?
If so, would the claimant be adequately compensated by an award of damages and would the defendant be in a financial position to pay them? If the answer is yes in both cases, no injunction will normally be granted.
If not, would the defendant be adequately compensated
