Source: All England Reporter
Publisher Citation: [2001] All ER (D) 89 (Dec)
Court: Chancery Division
Judge:

Laddie J
Representation Henry Carr QC and Thomas Mitcheson (instructed by Lupton Fawcett, Leeds) for Tyco.
  The first defendant appeared by his representative.
  Malcolm Chapple (instructed by Nelsons, Nottingham) for C.
Judgment Dates: 7 December 2001

Catchwords

Injunction - Interim - Undertaking as to damages - Claimant alleging defendant company producing industrial bolt on basis of claimant's design drawings - Claimant granted interim injunction on basis of cross undertaking as to damages - Discharge of injunction - Enquiry as to damages - Whether defendant suffering losses as a result of injunction.

The Case

The function of a damages enquiry on a cross undertaking was not to punish the claimant but to compensate the defendant. However, in the instant case, the defendants had failed to produce evidence that they had suffered a loss as a result of an interim injunction preventing them from selling an industrial bolt alleged to have been copied from the claimant company's designs. Accordingly, the claim to damages under the cross undertaking failed.

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