Court Determines Amount of Bond for Injunction

Those litigators who need to know the finer points of how the amount for a requisite bond is determined for purposes of obtaining an injunction, must read the recent Delaware Court of Chancery opinion in Applied Energetics, Inc. v. Farley, C.A. No. 2018-0489-TMR (Del. Ch. Aug. 14, 2018).  Noteworthy Aspects of this Decision: ·     There are relatively few Delaware decisions that explore the nuances and minutiae of how the amount of a bond is determined.  A bond is the form of security typically needed to obtain either a preliminary injunction or a TRO pursuant to Rule 65(c). ·     Injunctive relief in this case was expressed via a Stipulated Status Quo Order that was entered on July 20, 2018, but the amount of the bond was formally articulated on August 14, 2018, when this decision came down. ·     Court of Chancery Rule 65(c) provides that: “No restraining order or…

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