October 22, 2012 Articles

Enjoining a Fund Distribution Pending the Outcome of Litigation

A preliminary injunction can "stop the bleeding."

By Meaghan E. Ryan

It’s one of the essential elements that any party seeking an injunction must prove: A “remedy at law” (i.e., money damages) won’t make the party whole. In such cases, an injunction barring the disbursement of money, or requiring a party to pay money into the court’s registry, would resemble a pre-judgment attachment. Grower Service Corp. vs. Brown, 204 Ill. App. 3d 532, 561 N.E. 2d 1294 (3rd Dist. 1990). But some courts recognize an exception to this rule: Where the money at issue is a specific and identifiable fund, some courts may consider freezing or otherwise enjoining that fund.

Premium Content For:
  • Litigation Section
Join - Now