Cross-undertaking in damages

Any order for an injunction must contain an undertaking by the applicant to the court to pay any damages which the respondent may sustain and which the court considers the applicant should pay. This is known as a cross-undertaking in damages.

Interim injunctions, freezing orders and search orders are commonly granted before trial and, accordingly, before liability has been determined. The applicant must undertake to compensate the respondent for any loss suffered if it is subsequently determined (at trial) that the applicant was not entitled to the relief granted.