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Keywords

contractdamagesinjunctionappellantappellee
contractdamagesinjunctionappellantappellee

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Compute-A-Call, Inc. v. Tolleson, 285 Ark. 355, 687 S.W.2d 129

Facts

The appellees filed a complaint in chancery court stating that they had suffered irreparable damage because the appellant did not pay money due under the terms of a contract. They asked for a temporary injunction directing that the appellants pay the money already due, and also pay the money which would become due under the terms of the contract. The chancellor refused to transfer the case to circuit court and granted the temporary injunction ordering that appellants pay $40,760.13 into the registry of the court and to make future payments under the terms of the contract.

The appellees filed a complaint in chancery court stating that they had suffered irreparable damage because the appellant did not pay money due under the terms of a contract.

Issue

Whether the chancellor erred in refusing to transfer the case to Circuit Court and in granting a temporary injunction for money damages.

Whether the chancellor erred in refusing to transfer the case to Circuit Court and in granting a temporary injunction for money damages.

Rule

The prospect of irreparable harm or lack of an otherwise adequate remedy is at the foundation of the power to issue injunctive relief. Harm is normally only considered irreparable when it cannot be adequately compensated by money damages or redressed in a court of law.

The prospect of irreparable harm or lack of an otherwise adequate remedy is at the foundation of the power to issue injunctive relief.

Analysis

The Supreme Court analyzed the situation and determined that since money damages were the only damages requested in the case, and the remedy at law was adequate, the chancellor's refusal to transfer the case and the granting of an injunction for money damages were erroneous.

The Supreme Court analyzed the situation and determined that since money damages were the only damages requested in the case, and the remedy at law was adequate, the chancellor's refusal to transfer the case and the granting of an injunction for money damages were erroneous.

Conclusion

The Supreme Court reversed the decision and remanded the case with directions to dissolve the injunction, return the money paid into the court's registry, and transfer the case to circuit court.

The Supreme Court reversed the decision and remanded the case with directions to dissolve the injunction, return the money paid into the court's registry, and transfer the case to circuit court.

Who won?

The appellants prevailed in the case because the Supreme Court found that the chancellor's actions were erroneous given that the only damages sought were monetary and an adequate remedy at law existed.

The appellants prevailed in the case because the Supreme Court found that the chancellor's actions were erroneous given that the only damages sought were monetary and an adequate remedy at law existed.

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