What is cross undertaking in damages?
A cross-undertaking in damages is a legally binding promise to the court to compensate the respondent to an injunction for any loss or damage they might suffer if the interim injunction is granted at the initial hearing, but is later found to be improper at the final hearing. Why is a Cross Undertaking Required?
What is meant by a cross undertaking?
Cross-undertakings are “designed to mitigate the risk of leaving a person restrained by an injunction unprotected in respect of loss caused by it when the underlying claim subsequently fails”.
What is final injunction?
An injunction granted after the final hearing of a case, which carries finality and permanence. A final injunction can be contrasted to an interlocutory injunction which is granted in the course of a hearing as a temporary stop to maintain the status quo while a matter is decided or otherwise progressed.
What is prohibitory injunction?
A Prohibitory Injunction is simply an order of court requiring a person to restrain from doing any particular act, whereas in mandatory injunction court not only requires a person to restrain from doing an act, but also compels performance of certain act necessary for putting an end to a wrongful state of things …
Can an undertaking be enforced?
Enforcement action by the SRA The SRA does not have the power to directly enforce an undertaking. Instead, it can impose a sanction for a breach of undertaking.
What is the difference between damages and injunctive relief?
Difference Between Damages and Injunctive Relief Example, compensatory damages is the amount of money the plaintiff lost where the defendant’s tort was the “legal” cause of the loss. Injunctive relief is a court order prohibiting the defendant from continuing or repeating the tortious behavior.
What is the effect of an undertaking?
An undertaking is “a promise given by one party to the Court, frequently of mandatory nature and relating to an obligation to the other party in proceedings.” Undertakings are a legally binding promise which carry severe consequences if breached.
What does a cross undertaking in damages mean?
What is a Cross Undertaking in Damages? A cross-undertaking in damages is a legally binding promise to the court to compensate the respondent to an injunction for any loss or damage they might suffer if the interim injunction is granted at the initial hearing, but is later found to be improper at the final hearing.
When do you need an undertaking in damages?
When an interim injunction, freezing order or search order is granted, the applicant is almost always required to give an undertaking in damages, also known as the “cross-undertaking”. This practice note explains why cross undertakings are required, what they cover and how they are enforced.
When do I need to fortify a cross-undertaking?
Although the cross-undertaking itself is normally not subject to a financial limit, if an applicant for an interim injunction is not able to show evidence of sufficient assets within the jurisdiction to provide substance to the undertakings given, it may be required to reinforce (‘fortify’) its undertakings by providing security [1].