Injunctive Arbitration

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Categories: Dispute Resolution

Injunctive Arbitration

Injunctive Arbitration refers to a legal process wherein a party seeks a temporary court order (injunction) to restrain another party from taking certain actions while an arbitration proceeding is ongoing. This form of arbitration is typically utilized in situations where immediate action is necessary to prevent irreparable harm that could occur before the arbitration can be concluded.

Injunctive Arbitration is distinct from traditional arbitration, where the focus is primarily on resolving disputes through the arbitration process itself. Instead, this term combines elements of both injunctive relief and arbitration.

For example, if a business is in dispute with a former employee over non-compete clauses, the former employee might be taking actions that violate those clauses. If the business believes that these actions will cause significant harm—such as losing clients or proprietary information—it may seek an injunctive order from a court to prevent the employee from continuing those actions until the arbitration can decide on the underlying dispute.

It is important to note that the granting of an injunction is not automatic. The party requesting the injunction must typically demonstrate a likelihood of success on the merits of the case, the potential for irreparable harm, that the harm outweighs any potential harm to the opposing party, and that the injunction is in the public interest.

Overall, Injunctive Arbitration helps to balance the need for a speedy resolution of disputes while ensuring that parties do not suffer undue harm during the arbitration process.

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