Security measures

Court proceedings often last a long time and sometimes it is not possible to wait for a final judgement. For example, there may be a need to very quickly stop an opposing party from being able to do something (interim injunctions), or to secure assets (so-called attachments) so that it is actually possible to get paid when the judgement comes. This type of fast-track action, which secures a particular right pending the final judgement of the dispute, is called a protective measure and is governed by special rules. Normally, the evidence required to obtain a protective measure is not as strong as that required to obtain a final judgement on the same issue.

Apart from attachment, which can be used if an opposing party is trying to drain its company of money in preparation for litigation, protective measures can take many different forms. For example, in trade secret infringement cases, it is not uncommon for the defendant, who is alleged to have infringed certain trade secret material, to be temporarily prohibited from using the material until the court has been able to determine whether it constitutes the other company’s trade secrets.

It is not always possible to apply for security measures, but where it is possible, a well drafted security measure can put a lot of pressure on the other party to resolve the dispute voluntarily. Successful enforcement of a security measure in court normally also requires that the party applying for it is able to provide financial security. The idea is that the security will compensate the defendant for the damage if it turns out that the court, in its final judgement, does not consider that there were grounds for the claim.

At NORMA, we have experience with many different types of security measures and what is required for the court to grant them.