-
General
- What kind of claims are subject to PIs?
- Is any prior, out of court action (e.g. a warning letter) required before filing an application for a PI?
- Does an application for a PI need to be filed within a certain deadline?
- How quickly can PIs be obtained?
- Can PI proceedings be suspended?
- Which kind of evidence is required in PI proceedings?
- Ex parte preliminary injunctions
- Costs and Security
- Remedies
- Enforcement
- Damages
- Main proceedings
jurisdiction
General
1. What kind of claims are subject to PIs?
There is no limitation on the types of claims that can be subject to a PI.
2. Is any prior, out of court action (e.g. a warning letter) required before filing an application for a PI?
No.
3. Does an application for a PI need to be filed within a certain deadline?
No - there is no specific time limit for filing a PI application. However, once a PI application is submitted to the court, a separate request for the enforcement of the PI decision must be made within one (1) week of the decision. If this request is not made, the PI decision will be automatically revoked.
4. How quickly can PIs be obtained?
Usually within three (3) days; but the court may extend the period if deemed necessary.
5. Can PI proceedings be suspended?
Yes. The decision to suspend the PI is entirely at the court’s discretion.
6. Which kind of evidence is required in PI proceedings?
Sufficient evidence that any delay would lead to an adverse effect on the applicant’s ability to exercise its rights or would lead to occurrence of certain risks and harms.
Ex parte preliminary injunctions
7. Is it possible to obtain an ex parte PI (without hearing the counterparty)?
Yes.
Costs and Security
8. Are the costs recoverable from the counterparty in the event the PI is issued?
The costs related to the expert fees and litigation fees may be recoverable from the counterparty in the event the PI is issued. However, contractual attorney fees are not recoverable.
9. Is the applicant required to provide a security deposit when requesting a PI?
Applicants are required to submit an appropriate deposit for the loss which the counterparty or third parties may incur due to the PI. The amount that must be deposited is decided by the court, and is usually around 15% of the dispute value.
Remedies
10. Is it possible to appeal or file other remedies against a PI? If so, does this suspend the effect of the PI?
If a PI is granted, the counterparty may file an objection. Unless decided otherwise by the court, the objection does not suspend the enforcement of the injunction. Additionally, an appeal may be filed against the decision on the objection; however, filing an appeal does not suspend the enforcement of the injunction either.
11. How long do the proceedings to challenge a PI usually take?
The duration of the appeal process may vary depending on the relevant appellate court’s workload.
Enforcement
12. When does a PI become effective?
A PI becomes effective as soon as the request is accepted by the court. However, for the PI to be enforced, a separate request must be submitted by the applicant party within one (1) week from the notification of the injunction decision.
13. What legal measures are available to enforce compliance with a PI?
Upon the decision to enforce the PI, an application is made to the enforcement office where the asset or right subject to the injunction is located. If necessary, force may be used to enforce a PI. All law enforcement officers and, in villages, local headmen shall be tasked with assisting and complying with the orders of the officer carrying out the enforcement process upon written request. In the event where third parties are required to take action for the enforcement of the PI decision, then third parties shall be notified by the court for the enforcement of the PI decision. Individuals who prevent the implementation of the PI decision may face disciplinary imprisonment for a period of up to six (6) months.
Damages
14. Can the counterparty seek damages if the PI is later found to be unjustified and cancelled?
Yes. The counterparty may seek damages within one (1) year from the finalisation of the judgment or the revocation of the PI.
Main proceedings
15. Are further proceedings on the merits required in order for the court to grant a final injunction?
If the request for PI is made together with the main action, the PI decision remains in force throughout the proceedings. In this case, there is no need to file a separate lawsuit. However, if the PI is requested before initiating a lawsuit, then lawsuit regarding the matter must be filed within two (2) weeks following the PI decision. If the lawsuit is not filed within the two-week period, the PI will automatically cease to have effect.