Emergency Commercial Litigation

Orange County Emergency Commercial Litigation

Generally litigation requires a significant investment of time. However, there are many types of disputes that require immediate action in order to prevent imminent harm.

Situations Where Emergency Action is Necessary

Anytime a business is threatened with loss of business due to the wrongdoing of another the proper motions can temporarily relieve harm while the litigation unfolds. Common situations include:

  • Real estate disputes such as failure to pay rent and breach of sales contract.
  • Theft, embezzlement, or other unlawful misappropriations in businesses and start-ups.
  • Failure to deliver or pay for goods.
  • Infringement on intellectual property such as trademarks or copyrights.
  • Harm to reputation from defamatory speech including libel and slander.
  • Disclosure of trade secrets.

Remedies

Legal emergencies can be handled with a variety of restraining orders and prejudgment remedies.

Temporary Restraining Order

California courts recognize that while litigation can take years businesses may need immediate relief to prevent grave financial loss. As a result California allows a party to a lawsuit to apply for a temporary restraining order (TRO). TROs are basically short term injunctions; these prevent a person or entity from taking specific actions. In some cases courts can also require that a party actively do something specified by the TRO, but these cases are rarer.

The first step to obtaining a TRO is to file a lawsuit as it normal. A motion requesting a TRO may be filed with the complaint, and a hearing date can usually be set within a very short period of time. The defendant can then be served with both the complaint and the notice for the hearing a temporary restraining order and order to show cause.

The notice required for the TRO hearing is much shorter than the notice usually required for other orders, in many circumstances the moving party only needs to provide the other party with 24 hours for the hearing. Usually if a TRO is granted a bond will need to be filed to put money in an account to be provided to the defendant if it is later found that the defendant was not in the wrong and was damaged by the TRO. TROs require a showing that immediate harm is likely to happen, or else the court will not grant one. Generally TROs expire within 15 days unless the court issues another order for good cause.

Preliminary Injunction

Preliminary injunctions are like TROs except they take slightly longer to obtain but also result in longer injunctions that usually last through trial. Preliminary injunctions generally require 1) proof that the request for an injunction will be granted on the substantive merits of the case 2) without an injunction irreparable harm will occur 3) a balancing of the hardships of the two parties 4) and the injunction is not against the public’s interest. A preliminary injunction is usually requested at the same time a TRO is requested, and is still permissible even if a TRO request is denied.

Writ of Attachment

Writs of attachment allow a court to freeze bank accounts or place a lien on property until litigation has been resolved in order to prevent a party from dissipating their assets. A writ of attachment cannot be used to secure personal or household debts and is also limited in its application where there is already an interest in the real property involved. Nevertheless, writs of attachment, like TROs, may be requested very early in the litigation without the typical notice periods required by other motions.

Receivership

A receivership can be appointed in order to preserve assets for another to prevent them from being dissipated or obstructed from a judgment. In this remedy the court will appoint a neutral party to act as a receiver to hold a parties’ assets such as rents or profits from a business. Examples of cases where receiverships may be available include cases of corporate fraud, fraudulent purchases of property, and others where statute or equity permits it.

Orange County Emergency Litigation Attorney

The Law Offices of Tony T. Liu can help you get the emergency legal relief you need. To schedule a consultation with an experienced California business attorney call (714)415-2007 today.

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