Laura Margolies v. Encounter, Inc.

Summary

The New York Court of Appeals held that CPLR 6312(b) obligates a plaintiff to reimburse a defendant only if it is finally determined that the plaintiff was not entitled to the preliminary injunction, not based on the ultimate outcome of the main action. Accordingly, the Court reversed the Appellate Division and remanded for an order directing payment of damages to Encounter under the undertaking.