Chancery Lacks Jurisdiction to Award Damages for an Improvidently Entered Injunction in the Absence of a Bond

Can the Delaware Court of Chancery award damages to a defendant who was improperly enjoined by an order that dispensed with the need for a bond because of the parties’ prior contractual waiver that a bond be required? Barry Klayman & Mark Felger, writing in the Delaware Business Court Insider, discuss a recent decision in the Court of Chancery holding that the court lacks subject matter jurisdiction to award damages for an improvidently granted injunction in the absence of a bond or other security. 

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Mark E. Felger

Co-Chair, Bankruptcy, Insolvency & Restructuring

mfelger@cozen.com

(302) 295-2087

Barry M. Klayman

Of Counsel

bklayman@cozen.com

(302) 295-2035


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