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MARGOLIES v. ENCOUNTER, INC.

42 N.Y.2d 475 (1977)

Laura Margolies et al., Respondents, v. Encounter, Inc., Appellant, et al., Defendant.

Court of Appeals of the State of New York.

Decided October 11, 1977.

Attorney(s) appearing for the Case

Maurice A. Reichman for appellant.

Roy M. Cohn, Michael Rosen and Ronald F. Poepplein for respondent.

Chief Judge BREITEL and Judges JASEN, GABRIELLI, WACHTLER, FUCHSBERG and COOKE concur.

JONES, J.

We hold that the purpose and function of an undertaking given by a plaintiff pursuant to the provisions of CPLR 6312 (subd [b]), prior to the granting of a preliminary injunction, is to reimburse the defendant for damages sustained if it is later finally determined that the preliminary injunction was erroneously granted.

Encounter, Inc., defendant-appellant, is an organization chartered by the...

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