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Current Developments in the Commercial Divisions of the
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Posted: August 30, 2017

Court Erred in Granting Preliminary Injunction Without Ordering Plaintiff to Give Undertaking

On August 23, 2017, the Second Department issued a decision in Mobstub, Inc. v. www.staytrendy.com, 2017 NY Slip Op. 06265, holding that it was error to issue a preliminary injunction without requiring an undertaking, explaining:

However, upon the granting of a preliminary injunction, a plaintiff shall give an undertaking in an amount to be fixed by the court, that the plaintiff, if it is finally determined that he or she was not entitled to an injunction, will pay to the defendant all damages and costs which may be sustained by reason of the injunction. Accordingly, we remit the matter to the Supreme Court, Kings County, for the fixing of an appropriate mount of the undertaking.

(Internal quotations and citations omitted).

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