MBE Rules · Remedies
Injunction Bonds
Cal. Civ. Proc. Code § 529
The rule
On granting a preliminary injunction the court must require an undertaking to cover damages if the injunction is finally determined wrongful; recovery on the bond is the enjoined party's remedy.
In plain English
When a court issues a preliminary injunction, it requires the party seeking the injunction to post a bond. This bond serves as a financial guarantee that if the injunction is later found to be unjustified, the party harmed by the injunction can recover damages from the bond amount.
Worked example
A company seeks a preliminary injunction to stop a competitor from using a certain marketing strategy. The court grants the injunction but requires the company to post a $100,000 bond. Later, the court finds that the injunction was wrongful, allowing the competitor to recover damages from the bond.
Memory hook
Injunctions come with a bond: protect the wronged with a financial shield.
The trap
Students may overlook the requirement of a bond or assume that damages can be recovered without it, leading to incorrect conclusions about remedies available.
How examiners test it
Questions often present a scenario involving a preliminary injunction and ask about the implications of the bond, testing students' understanding of the financial responsibilities tied to injunctions.
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