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Court Of Chancery Limits Contractual Right To An Injunction

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.

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