Civil Procedure - Database Systems, Inc. v. C.L. Systems, Inc.: Preliminary Injunctions

Abstract

INTRODUCTION|In 1973 the Eighth Circuit articulated the standards for a traditional test for the grant or denial of a preliminary injunction in this circuit. Perhaps dissatisfied with the restrictive language of the traditional test, the Eighth Circuit in 1978 reversed the decision of a trial court which had applied this traditional test and remanded the case for consideration in light of an alternative test devised by the Second Circuit for injunctive relief. This decision created confusion in the Eighth Circuit whether to apply the traditional test, the alternative test, or both tests. In 1981, in Dataphase Systems, Inc. v. C.L. Systems, Inc., the Eighth Circuit, sitting en banc, clarified the standards for the grant or denial of a preliminary injunction in this circuit. The court rejected the singular use of either the traditional or alternative test, choosing instead to formulate a hybrid standard by incorporating the essential factors of both prior tests. The court in Dataphase adopted four factors to consider when deciding whether a preliminary injunction should be granted or denied. Although the court was not completely clear, the four factors are apparently applied sequentially. The movant must first show irreparable injury. Once this burden is met, the court will examine the other three factors in sequence. This Dataphase test was applied by an Eighth Circuit panel in ABA Distributors,Inc. v. Adolph Coors Co., which applied the four factors in the order set out in Dataphase. This case suggests that this sequence is the intended method of application, and should be used in the future in the Eighth Circuit...