Sometimes, you don’t choose the fight -- the fight comes to you. There are times when you know or can anticipate that someone else is planning to file suit against you, but you can’t go to court first because there’s no legal reason for you to sue them. Declaratory judgments are one way to handle those situations. A declaratory judgment is a special kind of lawsuit that asks for a court order explaining the legal duties and rights of the parties involved. This order is as final and enforceable as any other legal judgment. Especially in business, filing for a declaratory judgment is used as a preemptive strike. If you believe the case for your defense is strong and you can gain the upper hand by acting first, a declaratory judgment might be a smart choice. Here in Illinois, anyone may file for a declaratory judgment as long as there is an “actual controversy.”

Declaratory judgments are frequently used in litigation that strikes at the heart of the business, such as intellectual property or large payments under contract, making them an important tool for Illinois emergency business litigation. If you are expecting a fight, a declaratory judgment gives you the power to define at least some of the parameters of that fight. For example, suppose that a business from out of state claims you are infringing its trademark. Whether or not that business has explicitly threatened to sue you, you may want to file for a declaratory judgment first. Filing first allows you to choose your home court, or a court you believe is best suited to hear the matter, rather than being forced to travel to the other party’s home court. It also hastens the legal process, which can be important when a large payment or investment is at stake.

Businesses litigation emergencies that might be appropriate for declaratory judgments include:

• Any threat to sue you
• Claims that you are infringing someone else’s intellectual property
• You have already been sued, but a different cause of action was left out of the claim and you wish to avoid litigating the same issue
• Any situation where there is clear evidence that someone intends to break a contract
• Adverse actions by government agencies
• Insurance coverage disputes

In cases where you are seeking to stop someone from taking an action, such as stopping a former employee from sharing confidential client lists, you may also want to file for a temporary restraining order or injunction at the same time.

If you have a business litigation emergency, DiTommaso-Lubin can help right away. When necessary, our Chicago emergency business litigation attorneys can file on clients’ behalf for a declaratory judgment on the next court day. Our experience in Illinois business law spans more than two and half decades, so you can rest assured that we understand the rights and obligations of your business and its chances in court. Our Illinois business lawyers have extensive experience with issues likely to give rise to legal emergencies, such as trademark infringement, trade libel and restrictive covenants in employment, and our record of success includes multiple victories in those areas. If you’d like to learn more or get help right away, call our office today at 1-877-990-4990 or (630) 333-0000, or send us an email, to request a free consultation.