We are endeavoring to determine the most effective solution when faced with a choice between injunctions and compensation for damages as legal remedies in different scenarios.Our focus lies in cases where the actions of one property owner adversely affect another property owner, resulting in harm. We aim to conduct analysis with a focus on efficiency.When transaction costs are high, what constitutes the traditional policy recommendation, and what underpins it$?$ An illustration using the electric company versus laundry scenario can be helpful.The traditional perspective needs refinement when we take into account the information challenges that courts may encounter. In the event that the court overestimates the magnitude of harm inflicted by one party upon another, what are the potential consequences?