Temporary Relief in Business Disputes: Understanding TROs, Temporary Injunctions, and Preliminary Injunctions

When businesses face urgent legal threats, waiting for trial is not always an option. Temporary relief measures such as Temporary Restraining Orders (TROs), Temporary Injunctions (TIs), and Preliminary Injunctions (PIs) exist to prevent irreparable harm. In this episode, Colleen McKnight, seasoned trial attorney and founder of McKnight Law, explains how these extraordinary remedies work, when they apply, and what businesses must prove to secure them.

What Is a Temporary Restraining Order (TRO)?

Colleen McKnight explains that a TRO is an emergency court order granted when immediate action is needed to prevent harm that money damages cannot later fix. She illustrates this with the example of a hundred-year-old oak tree at the center of a property dispute. If the neighbor threatens to cut it down, no financial award could restore that tree. In such cases, a TRO allows the court to step in and temporarily stop the action.

TROs are short-term, usually lasting 10–14 days. To continue protection, the case must proceed to a hearing where evidence can be presented.

From TRO to Temporary Injunction

After a TRO, the court schedules an evidentiary hearing, often called a Temporary Injunction (TI) hearing. In federal court, this may also be referred to as a Preliminary Injunction (PI). Unlike a TRO, which is issued quickly and based on urgent need, a TI requires the requesting party to prove their case through evidence.

Courts typically weigh four factors at a TI hearing:

1. Likelihood of success on the merits

2. Evidence of immediate and irreparable harm

3. Balance of equities between both parties

4. Public interest considerations

According to McKnight, the first two factors—likelihood of success and irreparable harm—carry the most weight. Without strong evidence of both, courts are reluctant to restrict another party’s rights before trial.

Real-World Applications

Temporary relief often arises in business disputes involving trade secrets, unfair competition, or false advertising. McKnight notes that in cases such as an employee walking away with confidential data, a TRO may prevent them from using or disclosing those materials until the dispute can be properly litigated.

She also highlights constitutional and public policy cases, such as when a synagogue faced a utility shutoff before Hanukkah. Although the court did not grant the TRO, the pressure brought both sides to a resolution that protected religious rights in the short term.

Strategic Considerations

When seeking a TRO or TI, courts expect parties to act quickly and in good faith. Judges often ask whether the opposing party has been notified, since due process is a central concern. If immediate notice is not possible, documentation of all efforts to inform the other side strengthens the request.

Expedited discovery is another consideration. Because TI hearings are evidentiary in nature, attorneys often request limited, fast-tracked discovery to gather the proof needed to show a likelihood of success.

Common Pitfalls in Injunction Cases

McKnight identifies service issues and bonding requirements as two areas where businesses and practitioners often stumble. If the opposing party is not properly served, the TRO has no effect. Courts also require a bond to cover potential harm to the restrained party if the injunction is later found to have been wrongfully granted. These bonds can range from modest sums to millions of dollars, depending on the economic impact claimed.

Failure to anticipate or prepare for bond requirements can undermine an otherwise strong injunction request.

Preparing Before a Dispute Arises

While emergencies cannot always be predicted, McKnight emphasizes proactive steps that help businesses strengthen their position:

• Protect trade secrets with strong contracts and internal safeguards

• Maintain organized and audited financials to secure a bond if needed

• Build an ongoing relationship with a business attorney who understands the company’s operations and can respond quickly in a crisis

Ultimately, temporary relief is not granted lightly. Courts weigh fairness, evidence, and urgency before limiting another party’s rights. However, when used properly, TROs and injunctions can safeguard businesses from damages that cannot be undone.