Court Opinion

ID: 9742580
Source: CourtListenerOpinion
Date Created: 2023-08-26 21:16:25.773155+00
Date Added: 2024-06-11T07:24:33.911397
License: Public Domain

MATHIAS, Judge,
dissenting.
I respectfully dissent.
The power to issue an injunction should be used sparingly, and such relief should not be granted except in rare circumstances in which the law and facts are clearly in the moving party's favor. Northern Indiana Public Service Co. v. Dozier, 674 N.E.2d 977, 989 (Ind.Ct.App.1996). Nevertheless, the grant or denial of a preliminary injunction lies within the sound discretion of the trial court. Jay County Rural Elec. Membership Corp. v. Wabash Valley Power Ass'n, Inc., 692 N.E.2d 905, 908 (Ind.Ct.App.1998), trans. denied. We will not interfere with the trial court's exercise of discretion unless it is shown that the trial court's action was arbitrary or constituted a clear abuse of discretion. Id.
A party who moves for a preliminary injunction has the burden of establishing four elements (1) its remedies at law are inadequate, thus causing irreparable harm pending the resolution of the substantive action; (2) it has at least a reasonable likelihood of success at trial by establishing a prima facie case; (8) the threatened harm outweighs the threatened harm the grant of an injunction may inflict on the other party; and (4) the public interest would not be disserved by the grant of the preliminary injunction. Harvest Ins. Agency v. Inter-Ocean Ins. Co., 492 N.E.2d 686, 688 (Ind.1986). If the movant fails to prove any one or more of these requirements, the trial court's grant of an injunction is an abuse of discretion. Union Township School Corp. v. State ex rel. *12Joyce, 706 N.E.2d 183, 189 (Ind.Ct.App.1998), trans. denied.
Here, the Barlows contest only the first requirement. They contend that the existence of an adequate legal remedy (a suit for money damages) makes injunctive relief inappropriate in this case. Sipes Body responds that injunctive relief is appropriate because damage to its reputation is at stake and a specific dollar amount of damages cannot be ascertained.
Just six months ago, in an opinion written by the author of the majority opinion in this case, we addressed a nearly identical claim. In Daugherty v. Allen, 729 N.E.2d 228 (Ind.Ct.App.2000), a dentist sought a preliminary injunction against a former employee who was allegedly telling others that the dentist (1) observed people use the bathroom through holes in the office walls, (2) attempted to give her a credit card in exchange for her being his mistress, and (8) was having an affair with one of his employees. Id. at 2831. The trial court entered a preliminary injunetion, and we reversed.
In Daugherty, we rejected the dentist's argument that the statements by the former employee "irreparably harmed his business and personal reputation, resulting in him sustaining non-quantifiable damages." Id. at 284. Rather, we noted that "I[wle have repeatedly allowed plaintiffs to recover damages for injury to their reputation in defamation suits, damages which are not easily quantifiable." Id. at 285 (footnote omitted). Because the dentist's damages could be ascertained, we held that he had an adequate remedy at law in the form of a suit for money damages, and thus injunctive relief was not warranted. Id. at 2364 The protestations of Sipes Body notwithstanding, its alleged damages are quantifiable economic damages subject to proof through its month-to-month and year-to-year business records. I must respectfully suggest that the majority's reasoning in this case cannot be reconciled with Daugherty.
Sipes Body relies largely on two cases in which this court affirmed a grant of injunc-tive relief. See McGlothen v. Heritage Emvironmental Services, 705 N.E.2d 1069 (Ind.Ct.App.1999); Norlund v. Faust, 675 N.E.2d 1142 (Ind.Ct.App.1997), trans. denied.5 The majority seems to believe that these cases are persuasive precedent.
In both McGlothen and Norlund, we considered the propriety of granting a preliminary injunction to enforce a covenant not to compete. We noted if the plaintiff "could point to a specific dollar amount of losses then a remedy at law would be sufficient." McGlothen, 705 N.E.2d at 1074; Norlund, 675 N.E.2d at 1149. However, because it would have been "pure speculation to place a dollar amount on the damages," we held that an injunction against the prohibited behavior was "the most efficient way to lift the burden of that harm from the shoulders of the employer who contracted so as not to suffer such harm." McGlothen, 705 N.E.2d at 1074; Norlund, 675 N.E.2d at 1150.
I believe that McGlothen and Norlund are distinguishable from the case at bar and from Daugherty. Parties such as those *13in McGlothen and Nortund enter into non-compete agreements to contractually set the parameters of acceptable conduct in the event of termination of their business relationship. If the non-compete agreement is violated, the parties themselves have usually contractually agreed that damages are difficult, if not impossible, to determine. The harm to the non-breaching party often occurs quickly with little or no time for a corrective response. For these reasons, injunctive relief is "more practical and efficient" than waiting to pursue a breach of contract action. See McGlothen, 705 N.E.2d at 1074; Norlund, 675 N.E.2d at 1149.
In the case before us, however, the potential harm is lost business to a body shop. Sipes Body has brought separate claims for intentional interference with a business relationship and for defamation. The resolution of these claims through proof of proximate causation and damages at trial affords an efficient and practical legal remedy to the dispute.
Finally, but not insignificantly, injune-tive relief is anything but "practical and efficient" in this case. Prohibiting the Barlows from making any "false, negative or disparaging statements" about Sipes Body will be very difficult to enforce. Presumably, upon request by Sipes Body, the trial court will need to hold a contempt hearing every time a potential Sipes Body client says the Barlows uttered an unfavorable word about Sipes Body or the work it does. I believe this situation is better addressed by a trial on the merits at which Sipes Body can prove its allegations and damages.
While the Barlows' First Amendment claims are significant, I believe that reversal is called for under state law. I would therefore not reach the First Amendment discussion on the merits.
For all of these reasons, I respectfully dissent and would reverse the trial court.

. Sipes Body responds that Daugherty is distinguishable because (1) the dentist conceded at oral argument that his injury was "purely economic in nature"; (2) the dentist testified at the bearing that he could calculate the decrease in his business and the trial court would be able to set a dollar amount on his damages; and (3) the dentist failed to produce proof that he would suffer trreparable economic injury. Brief of Appellee at 6. To the extent that these are differences at all, they are not ones of any consequence to this case. The key, as explained in Daugherty, is whether there exists an adequate remedy at law in which damages can be ascertained. Id. at 236.

. Sipes Body also relies on Felsher v. University of Evansville, 727 N.E.2d 783 (Ind.Ct.App.2000), but our supreme court granted transfer in that case and thus this court's opinion has been "vacated and held for naught." Ind.Appellate Rule 11(B)(3) (now App.R. 58(A), which provides that upon a grant of transfer the Court of Appeals' opinion is "automatically vacated").