Chartis Warrantyguard, Inc. v. National Electronics Warranty, LLC, C.A. No. 5764-VCP (Del. Ch. Jan. 28, 2011).
This case involves the effort to obtain a preliminary injunction in aid of arbitration. The 32-page decision is noteworthy for purposes of this blog primarily for its useful recitation of the prerequisites for a preliminary injunction, especially one sought in aid of arbitration.
In granting the motion for a preliminary injunction, because there was no special urgency involved, it is notable that the complaint was filed on Aug. 26, 2010 and the Court heard oral argument on October 20, 2010 and this opinion issued in January reflected the ruling on that motion. Notably, the Court required a bond, pursuant to Court of Chancery Rule 65(c), secured in the amount of $500,000 to cover the possible damages projected to be incurred by the party who was enjoined, to “cover the risk” if it was later determined that the injunction was improvidently granted.