Court Of Chancery Limits Contractual Right To An Injunction

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AM General Holdings LLC v. The Renco Group Inc.,  C.A. Nos. 7639-VCN and 7668-VCN (December 29, 2015)

Practitioners often assume that if they provide a contractual right to an injunction for breach of contract, that the Court is obligated to find such a breach constitutes the irreparable harm that warrants an injunction. Not so fast, holds this decision.

Instead, such a contractual provision is but evidence of irreparable harm that the Court is not obligated to accept. The presence of irreparable harm still must be shown to get an injunction.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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