J. A. Preston Corp. v. Fabrication Enterprises, Inc.

—Order reversed, on the law, without costs, and motion denied. Memorandum: In spite of language in Margolies v Encounter, Inc. (42 NY2d 475) which, taken literally, might lead to a contrary result, we conclude that a plaintiff who has been granted a *998preliminary injunction is not entitled to an order discharging the undertaking solely because he has been successful on the appeal from the order granting the preliminary injunction. In Margolies (supra, p 477), the court held "that the purpose and function of an undertaking given by a plaintiff pursuant to the provisions of CPLR 6312 (subd [b]),…