If an Ontario court serves your business with an interlocutory injunction, you must obey it immediately to avoid being held in contempt. You should then urgently hire a commercial litigation lawyer to file a motion at the Superior Court of Justice to vary or dissolve the order, which currently costs $345 CAD in basic filing fees.
Having your business operations suddenly frozen by a court order is one of the most stressful events an entrepreneur can face. An interlocutory injunction is a temporary order issued by a judge that forces you to stop doing something (like selling a specific product or using certain software) until a full trial can be held.
Whether your company operates a storefront in Toronto, a logistics hub in Mississauga, or a tech startup in Ottawa, an injunction can cripple your cash flow. Because trials in Ontario can take years to complete, waiting is rarely an option. You need a rapid legal strategy to get your business moving again. 📈
It is important to remember that this order is not the final verdict. It is a temporary measure designed to preserve the status quo. Most business owners work closely with an Ontario law firm to challenge the injunction by proving that it causes irreparable harm to their livelihood.
Step-by-Step Process in Ontario
Responding to an injunction requires immediate action. The legal test is strict, and your lawyer will need to act fast to protect your commercial interests.
Step 1: Comply Immediately and Stop the Activity
Your very first step is strict compliance. If the Superior Court of Justice orders you to stop selling a contested piece of equipment, you must stop immediately. 🚫
Ignoring a court order is considered civil contempt of court. If you continue the banned activity, a judge can issue severe fines against your corporation or even order jail time for corporate directors. Never ignore an injunction, even if you believe the plaintiff’s claims are completely false.
Step 2: Retain an Ontario Commercial Litigation Lawyer
Injunctions are complex and fast-moving. You generally cannot navigate this process without professional legal counsel. You need a lawyer who regularly practices commercial litigation in the Superior Court of Justice.
Your legal team will immediately request copies of all the affidavits and evidence the plaintiff used to convince the judge to grant the order. They will review these documents to find weak points in the plaintiff’s arguments.
Step 3: Review the Undertaking as to Damages
When a plaintiff asks for an interlocutory injunction, Ontario law usually requires them to provide an “undertaking as to damages.” This is a formal promise to the court. 💵
It means that if you are forced to shut down, and later at trial, the court decides the injunction should never have been granted, the plaintiff must pay you for all your lost profits. Your lawyer will evaluate if the plaintiff actually has the financial resources to pay you back. If they are broke, your lawyer can ask the court to dissolve the injunction or demand that the plaintiff post a security bond.
Step 4: Gather Evidence of Financial Hardship
To fight the injunction, you must prove that keeping the order in place will cause your business “irreparable harm”-harm that cannot simply be fixed by a money payout later.
You will need to work with your accountant to provide financial statements, payroll obligations, and lost contract values. If the injunction will force you to lay off staff or file for bankruptcy in Ontario, this is powerful evidence your lawyer will use.
Step 5: File a Motion to Dissolve or Vary
Your lawyer will draft a formal Notice of Motion and supporting affidavits to ask the judge to either cancel (dissolve) the injunction or change its terms (vary). 📝
For example, if the injunction completely shuts down your factory, your lawyer might ask to vary the order so you can at least finish fulfilling existing customer orders while the lawsuit continues. The court will balance the harm done to your business against the harm claimed by the plaintiff.
How Much Does it Cost in Ontario?
Fighting an injunction is an intense, heavily front-loaded legal process. You must be prepared for significant upfront costs as of May 2026. 💰
- Court Filing Fees: $345 CAD (Standard Superior Court of Justice fee to file a motion).
- Litigation Lawyer Fees: $15,000 to $40,000+ CAD (Injunctions require emergency weekend work, cross-examinations, and voluminous drafting).
- Forensic Accounting Fees: $5,000 to $15,000 CAD (To calculate and prove the exact financial damage the injunction is causing).
- Potential Cost Awards: If you lose the motion, you may be ordered to pay a portion of the opposing side’s legal fees.
| Type of Court Order | Typical Duration | Immediate Response Action |
|---|---|---|
| Interim Injunction | Very short (usually 10 to 14 days) | Prepare for the full hearing. The court will soon decide if it lasts until trial. |
| Interlocutory Injunction | Long-term (lasts until the final trial) | File a motion to vary or dissolve. Do not wait, as trials can take years. |
| Permanent Injunction | Forever (issued after a trial) | Consider a formal appeal. Must be taken to the Ontario Court of Appeal. |
How Long Does the Process Take?
The timeline for dealing with an injunction is aggressively fast compared to standard lawsuits. ⏱️
You usually only have a few days to review the initial materials. Getting a date before an Ontario judge for a motion to dissolve the order can take anywhere from 2 weeks to 2 months, depending on how backlogged your local courthouse is. In truly catastrophic situations, your lawyer can request an emergency hearing within a matter of days.
Frequently Asked Questions (FAQ)
Can I just ignore the injunction if the lawsuit is frivolous?
Absolutely not. Ignoring an order from the Superior Court of Justice is civil contempt. It can lead to massive financial penalties or even imprisonment, regardless of how weak the underlying lawsuit is.
What does “irreparable harm” mean in Canadian law?
Irreparable harm refers to damage that cannot be adequately compensated with money later on. Examples include permanent loss of market share, total business collapse, or permanent damage to your corporate reputation.
Will the plaintiff have to pay me if they lose the trial?
Generally, yes. If an injunction is granted but the plaintiff later loses the trial, their “undertaking as to damages” requires them to compensate you for the profits you lost while the injunction was active.
Can we settle the dispute outside of court?
Yes. Even with an injunction in place, you can enter into mediation or settlement negotiations to resolve the dispute faster and avoid years of expensive litigation.
Can an injunction freeze my business bank accounts?
Standard interlocutory injunctions usually freeze actions (like selling goods). Freezing bank accounts is typically done through a specialized, much stricter order called a Mareva injunction.
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