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Remedies For Wrong Preliminary Injunctions: The Case For Disgorgement Of Profits And Only Partial Liability For Harms, Barak Medina, Ofer Grosskopf

Barak Medina

A party who applies for a preliminary injunction is required to post a bond that would cover the harms inflicted on any party who is found to have been wrongfully enjoined or restrained. Yet, the moving-party’s liability frequently covers only a fraction of the actual costs and harms inflicted by the injunction. In addition, courts reject most claims for restitution of benefits gained by the plaintiff on the basis of the wrong preliminary injunction. This Article demonstrates that these practices are only partially justified. It supports the practice of requiring the moving-party to compensate the defendant for only part of …