A breach of contract lawsuit can lead to a variety of negative consequences. One of those consequences may be a temporary injunction imposed against you. These injunctions may have a powerful negative impact on your business, so it is wise to oppose them vigorously, as one software company successfully did in its recent appellate case. Wherever you are in the litigation process, make sure you have experienced South Florida commercial litigation counsel on your side.
Recently, a software vendor-vendee contract was the source of this kind of dispute and ensuing litigation. A “health, home and travel products” company contracted with a software company for the use of the latter’s software, through which the former could allow its customers to make credit card payments. The merchant often paid its $10,000 monthly obligation late, and missed its June, July and August 2017 payments entirely. At some point, the software company stopped delivering on the services it promised in the contract. According to the merchant, that happened before it missed its June 2017 payment.
The products company sued for breach of contract. Specifically, the merchant alleged that the software company owed it $117,000 that the software company had taken into its merchant services account but failed to distribute to the merchant. When you are sued for breach of contract, the other side may undertake various techniques to achieve an outcome it considers successful. One possible outcome is to file a request for an injunction. An injunction, if granted, would force you to refrain from taking certain actions or else face possible contempt-of-court penalties.
In this case, the merchant sought, and obtained, a temporary injunction. That injunction prohibited the software company from “withholding net revenues belonging” to the merchant, withholding plaintiff’s records, refusing to respond to the merchant’s vendors and blocking the merchant’s access to the software system.
If you find yourself on the receiving end of an injunction issued in favor of your opponent, you have the option to file an appeal. The law says that injunctions should be granted only in relatively rare situations. The plaintiff has to have proof that it will suffer irreparable damage without the injunction and that it lacks an appropriate remedy at law.
One of the key points here is an adequate “remedy at law.” If a party can be fully and fairly “made whole,” or compensated, for the harm it suffered through an award of money damages, then it necessarily has an adequate remedy at law and it is not entitled to an injunction. In this breach of contract case, the trial court ordered the software company to pay the merchant approximately “$117,000 for withheld sales revenues.” That alone proved that the merchant did have an adequate remedy at law, which meant that awarding it an injunction was inappropriate. For that reason, the software’s company’s appeal was successful and the injunction thrown out.
For the wise advice and effective representation your business needs, contact the skilled South Florida commercial litigation attorneys at Stok Folk + Kon. Our experienced team has been helping clients protect their business interests for many years.
Contact us online or by calling (954) 237-1777 to schedule your consultation and find out how our firm can help you.
More blog posts:
How the Optimal Use of the Florida Rules of Civil Procedure Can Benefit You in Your Commercial Litigation Case, Florida Business Lawyers Blog, Aug. 2, 2018
Establishing ‘Minimum Contacts’ to Make Sure Your Florida Commercial Litigation Action Stays in Florida, Florida Business Lawyers Blog, May 24, 2018