Parties to contracts often include text in the document stipulating that a breach of the agreement will cause “irreparable harm” and, therefore, justify an injunction. These contract clauses are not a cure-all that relieves a plaintiff from the obligation to prove irreparable injury in court. Texas courts merely consider the contract stipulation as one factor in favor of finding that a threat of irreparable injury exists. The plaintiff must still prove that is the case with additional evidence.
The following are a few examples of court decisions following this rule: Texas Health & Human Svs. Commission v. USA, 166 F. Supp. 3d 706, 712 (N.D. Tex. 2016); Dickey’s Barbeque Restaurants, Inc. v. GEM Investment Group, LLC, No. 3:11-CV-2804-L, 2012 WL 1344352, *4 (April 18, 2012, N.D. Tex.).
photo credit: Informedmag Writing Contract Business Relation – Credit to informedmag.com via photopin (license)