QUESTION
What is the effect on a Termination Notice an interlocutory injunction restraining termination pending hearing of a suit?
Asked on Feb 20th, 2013 on Civil Litigation - Arizona
More details to this question:
Two parties are in contract. The Contract provides for a two-month period of Notice for Termination. One of the parties opts to terminate and issues a two-month notice. The other party goes to Court and obtains an interim injunction restraining termination pending hearing of the matter. The hearing will take over two-months to conclude. Question: If upon hearing the matter the Court declines to confirm the injunction, is the party wishing to terminate entitled to terminate immediately, or should she wait for the period of the termination notice to lapse. Put differently, did the injunction restraining termination also stop the time required for notice from running? If there is case law addressing the issue, kindly provide the citation/link as well. Thanks
1 ANSWER
It depends entirely on what, exactly, the interim injunction says. If the issue is not addressed in the interim injunction, and the Court declines to continue the injunction after the hearing, the Court will likely address it in its ruling then, especially if the party being terminated asks the Court to rule that the 2 months begins running from that date.
Answered on Feb 21st, 2013 at 11:27 AM