costsThe case of AstraZeneca AB -v- KRKA dd Novo Mesto [2015] EWCA Civ 484 is one to read for anyone thinking of applying for an injunction and giving an undertaking in damages.

In this case, the Claimant obtained an injunction preventing the Defendant marketing a pharmaceutical. An undertaking as to damages was given by the Claimant. The injunction was later discharged. The Defendant obtained judgment on the basis of the undertaking and the Claimant was subsequently ordered to pay £27 million in damages. The Claimant appealed but that appeal was unsuccessful.

The key point to take from this case is that, in cases where an undertaking in damages is required, this case illustrates the need to inform the client of the significance (and potential size) of an undertaking in damages. It will most definitely come as a shock to the client if not informed, whilst also putting the solicitors in a position where they are potentially facing a professional negligence claim being brought against them.