Guzzetta v. SERVICE CORP. OF WESTOVER HILLS

BERGER, Justice:

In this appeal we consider whether the Court of Chancery abused its discretion in setting the amount of an injunction bond. A party that is wrongfully enjoined may recover damages resulting from the injunction, but that recovery is limited to the amount of the bond. Thus, in order to fully protect the enjoined party, the trial court should set the bond at a level likely to meet or exceed a reasonable estimate of potential damages. In this ease, the trial court correctly rejected several items that appellants included in their list of potential damages. But the remaining items…