Brian the buyer thought the stallion was his.  Days ago, he gave Steve the seller a sizable good faith deposit to buy a stallion, with the understanding that the purchase arrangements would be finalized later in the week. However, the day Brian delivered his final payment, Steve refused it, handed back the deposit, and advised Brian that the stallion would be sold to somebody else. Brian wants to buy the stallion, and he wants to have his agreement enforced. What can he do?

One option available to Brian the buyer is to seek an injunction in an effort to have the stallion sold -- to him only. This article explores the legal remedy of an injunction.

An injunction is a court issued order that either requires a party to take some specified act or prohibits a party from carrying out a specific act. If Brian the buyer were truly serious about his intention to buy Steve's stallion, Brian could consider promptly seeking an injunction that, at a minimum, would force Steve to halt any sale of the stallion to anyone until the court has made a ruling on whether Brian has a prioritized and enforceable right of purchase.

Sales disputes in the horse industry are prime settings for injunction proceedings, although they are not commonly pursued. Injunctions are frequently pursued in copyright and patent infringement disputes in which a person or company seeks to protect ideas or inventions. Over the years, well-publicized injunction proceedings have involved striking workers who are ordered to return to their jobs. Some injunctions have ordered that demolition efforts cease on historic buildings.

An injunction is considered an extraordinary legal remedy. Generally, a court will consider issuing an injunction after receiving a request that is specific, formal, and written. The court situated in the county where the animal is located typically has the authority to issue an injunction affecting the animal. Then, if an injunction is issued, it must be properly and timely delivered to the appropriate person(s) affected.

Generally, there are three types of injunctions:
(1) Temporary Restraining Order.

Where allowed by law, Brian the buyer would pursue this first. Brian's attorney would seek an immediate order of the court, without Steve the seller's presence, stopping Steve from moving or selling the stallion until after a preliminary or temporary injunction hearing takes place in a few days. The function of a temporary restraining order is to keep things as they are for a short period of time until the court can more fully evaluate the circumstances and hear Steve's side of the story.

(2) Preliminary Injunction or Temporary Injunction.

A few days after the issuance of a temporary restraining order, the court will typically hold a special hearing with the key issues of whether a preliminary injunction (sometimes called a temporary injunction) should be issued to stop the horses sale to someone else and, if so, under what terms. By this time, Steve should have received proper advance notice, and his lawyer would be present. The court would consider several factors, including:

* Whether the party seeking the preliminary injunction (Brian) has a strong chance of winning when the case against Steve proceeds further through the legal system. That is, Brian would prove that under prevailing law he has a valid purchase agreement and therefore can buy the stallion. Steve would argue that Brian had no legitimate contract and has a losing case.

* Whether Brian would suffer irreparable injury if an injunction were declined. Here, for example, Steve would claim that Brian would suffer no serious harm if he lost the stallion, as the industry is full of good stallions and any "harm" Brian suffered can be compensated by money, anyway. Brian might assert that this particular stallion is so unique that the most appropriate remedy is an injunction.

* If the court declined an injunction, whether the potential for harm to Steve outweighs any possible harm to Brian the buyer.

* Whether the public interest favors issuance of an injunction. Brian might claim that the public interest favors enforcing valid contracts. The court would consider these factors and more at a hearing and decide whether an injunction should be issued and, if so, under what terms.

3) Permanent Injunction.

After a full hearing or trial on the merits has taken place, the court has the discretion to issue a permanent injunction. By this time, Brian the buyer's lawyer would make sure that the court has considered all of the issues and all of Brian's legal demands. Injunctions can include other requirements. For example, the Court might order Steve or Brian to pay a bond as a condition to issuing an injunction.

What Happens if Someone Refuses to Comply?

If Steve the seller refused to comply with a properly-issued injunction or restraining order, he would face the prospect of court-imposed penalties that might include a jail sentence, fine, or other monetary penalty.

Alternatives to the Injunction

If Brian decided not to pursue an injunction, or if he lost his injunction efforts, he may still have a lawsuit against Steve for compensation due to Steve's failure to complete the sale.

1. With injunctions, timing can be critical. This means that Brian the buyer should explore this legal option quickly after learning that Steve the seller was about to sell the horse to someone else. Also, since injunctions are usually issued by a proper court located in the county where the horse is maintained, if Brian waits too long he risks losing track of the stallion.

2. State laws often dictate which courts have the ability to handle injunctions.  Because injunctions are considered unique types of relief, certain courts -- such as small claims courts -- may be powerless to issue them.

3. Injunctions are not easy, nor are they cheap. These proceedings can be highly complex and often require extensive legal analysis, which attorneys must present to the court through written briefs, hearings, affidavits, and testimony.

This article does not constitute legal advice. When questions arise based on specific situations, contact a knowledgeable attorney.