Utilizing receiverships, temporary restraining orders, and injunctions, in business litigation actions can offer parties great advantages. Getting a receiver appointed, and utilizing temporary restraining orders and preliminary injunction can give you the competitive advantage in business/corporate litigation matters.
The most common form of equitable remedy in Ohio is an injunction. An injunction is a court order that requires an individual or business named in the order to do or not to do a specific action or actions. This is an extraordinary remedy that courts utilize in certain cases in order to avoid or prevent a possible injustice from occurring. Failure to comply with an injunction may result in the offender being held in contempt of court.
Receivership is another form of extraordinary equitable remedy and is a process in which an institution or enterprise is placed in the custody of a “receiver.” This appointment occurs as the result of a court order. A receiver will take official custody of the property, business, or assets of an individual or entity that is insolvent or whose property is involved in a dispute. When property is in receivership, the receiver may have the authorization to make a sale of the property. However, the receiver will most likely be required to agree to a bond that guarantees the receiver’s faithful performance of the duties and responsibilities of receivership.
These equitable remedies can be utilized, and be great assets when involved in business litigation.