Injunctions In Singapore – A Law Firm’s Guide

1. Injunctions In Singapore –A Law Firm’s Guide INJUNCTIONS IN SINGAPORE –A LAW FIRM’S GUIDE An injunction is an order from the Singapore Courts that compels one or more parties to do or refrain from performing a specified act or acts. It can be temporary, such as in the case of being put in place until a judgment is entered, or permanent, such as after the conclusion of a trial. Injunctions are commonly awarded to preserve the situation as further specified acts or failure to perform those specified acts would cause irreparable harm – harm that would not be able to be adequately remedied through monetary compensation. Imagine your neighbour is doing construction on his land that is causing land instability or flooding, that if continued, could damage your property irreversibly. You may apply to The Courts for an injunction to your neighbour to prevent construction from proceeding to stop any further damages from occurring to your property. How does one go about applying for an injunction? Due to the serious nature and consequences involving injunctions, an applicant is usually required to give notice to the other party to ensure a fair trial. However, there are instances where applications can be made without notice to the other side (going ex parte), such as when there is no time to notify the other party or when it may be inappropriate to do so. The Court will generally account for the urgency of the matter when granting an injunction. Therefore, a clear argument must be presented regarding the gravity of the situation and full and fair disclosure of all material facts must be made. For time-sensitive situations, Singapore Courts can issue injunctions within a few days. The Court may also

2. accept injunction applications on Weekends and Public Holidays depending on the urgency of the matter. As one must not only comply with court rules but also follow the technical procedures such as the filing of Summons, it is strongly recommended to seek the help of a qualified lawyer for the application of an injunction. What are the consequences of breaching an injunction? As an injunction is an order of the Court, breaching an injunction carries serious consequences. Once the Court has issued an injunction and the party has wilfully breached the terms, he or she is considered to have defied the Court order, and hence be liable for contempt of court. Third parties assisting the offender in breaching the injunction may also be held accountable. Courts have the power to carry out punishments against those in contempt of court, depending on what type of Court the offender has gone against. For contempt against the High Court or Court of Appeal, there is a possible imprisonment term of up to 3 years and or a fine of up to S$100,000. For contempt against any other Court, the imprisonment term is up to 12 months and the fine is up to S$20,000. Did you know there are different types of injunctions? There are a few different types of injunctions that may be granted by Singapore Courts. Here are some of the types of injunctions you might encounter during your application process, as well as accompanying examples for easier understanding. Final or perpetual injunction Whereby the injunction is granted by the final judgment of the Court which ultimately disposes of the injunction suit. The final judgment

3. can be a result of a trial, a summary judgment (judgment entered without a full trial), or a default judgment (judgment when the other party has failed to perform a court-ordered action). Example: The factory nearby is emitting bad smoke that pollutes the air around your home. You begin a civil suit against the owners of the factory. At the end of the trial, the Court awards a final injunction, preventing the factory owners from continuing their operations which causes the bad air pollution around your home. The case ends there. Interim or interlocutory injunction Whereby the Court delivers an order before the lawsuit has ended and final judgment determined. This is commonly awarded in matters of great urgency, to prevent the other party from doing a specified act or compel them to do a specified act to prevent irreparable losses – again, losses that may not be adequately compensated through monetary means. Example: A family member has passed away and left his or her house to you and a cousin. To determine how to fairly divide the estate, you take your cousin to Court. However, before the trial has concluded, your cousin decides to list the house for sale online. The Court then issues an interim injunction to stop your cousin from selling the property. Prohibitory injunction Whereby a party is refrained by the Court to do or continue to do a wrongful act. This is usually awarded when the other party has breached or is about to breach a negative covenant in a contract – meaning a provision in a contract that restricts one party from carrying out certain actions. Example: You are resigning from Company A. In your employment contract, there is a clause that states you are not allowed to work for direct competitors such as Company B for six months after your last day at Company A. You receive an offer from Company B only a week after resigning and decide to accept it. Company A then applies for a prohibitory injunction to stop you from working for Company B.

4. Mandatory injunction Whereby a party is compelled by the Court to do a positive act, unlike a prohibitory injunction which deals with the opposite. This may have a similar effect to an order for specific performance. Sometimes, this requires the other party to undo or fix his wrongful act by doing a ‘positive’ act for this purpose. Example: You work in Company A and post confidential information about the Company on your website. The Company takes you to Court and is granted a mandatory injunction to force you to remove all instances of the confidential information from your website and prevent you from revealing any additional confidential information. Anton Piller injunction Whereby the Court permits a party to enter another party’s premises to search for and seize evidence relevant to a dispute. Named after the 1975 English case of Anton Piller KG v Manufacturing Processes Ltd, it must be proven that the other party might destroy or tamper with relevant evidence. Example: An individual working under Company A is suspected to have downloaded large amounts of confidential company data onto a hard drive before leaving the company. As part of the lawsuit, the Court grants Company A an Anton Piller injunction to allow Company A to search the individual’s home to seize any data storage device potentially containing the company data. Mareva injunction Whereby the Court freezes a party’s assets, thereby preventing the dissipation of assets to avoid judgment. This injunction originated out of an English Court of Appeal case Mareva Compania Naviera SA v International Bulkcarriers SA, hence the name. Typically interim, the injunction can be domestic worldwide Mareva injunction would freeze a party’s assets internationally. or worldwide – a

5. Example: Company A is taking Company B to Court as Company B owes Company A more than S$1 million but has been constantly late on payments. Company B is a foreign-owned company that conducts a lot of business internationally. a Mareva injunction to prevent Company B from moving assets overseas to escape the payment of debt. Quia timet injunction A quia timet injunction may be granted where either the defendant has threatened a wrongful act or there is a real risk that, unless an injunction is granted, an actionable wrong will be committed Example: Your neighbour’s tree roots are growing further and larger every year. You are afraid that his tree roots might encroach on your property and burst your septic tank. You apply for a quia timet injunction to ensure early removal of the tree roots before damage occurs. Conclusion Injunctions in Singapore are a complicated process that requires swift and accurate execution. Speak to us about your matter today. The Court issues