Jackson Dairy, Inc. v. H. P. Hood & Sons, Inc. - 596 F.2d 70 (2d Cir. 1979)

Rule:

Irreparable injury means injury for which a monetary award cannot be adequate compensation, and where money damages is adequate compensation a preliminary injunction will not issue.

Facts:

Appellee Jackson Dairy, Inc. distributed appellant H.P. Hood & Sons, Inc. products to a company as well as other chains and some smaller stores in a certain territory. In 1978, appellant began supplying the company with its "schedule 3B" products at its central warehouses outside of the certain territory. The warehousing system bypassed appellee. Appellee filed suit alleging breach of the exclusive distributorship agreement and was awarded a preliminary injunction against appellant. Appellant sought review of the judgment.

Issue:

Under the circumstances, was the award of preliminary injunction proper?

Answer:

No.

Conclusion:

The court noted that the standard in the Second Circuit for injunctive relief called for a showing of irreparable harm and either likelihood of success on the merits or sufficiently serious questions going to the merits to make them a fair ground for litigation and a balance of hardships tipping decidedly toward the party requesting the preliminary relief. According to the court, irreparable injury meant injury for which a monetary award cannot be adequate compensation; where money damages was adequate compensation a preliminary injunction will not issue. In the case at bar, the court held that the appellee did not demonstrate any likelihood that money would not have been adequate compensation. Further, the court found that appellee was not entitled to a preliminary injunction because appellee's allegation that there was a disruption with its sales and delivery relations with its customers was readily compensable in monetary damages.