Assessing compensation under cross-undertakings in damages: is remoteness relevant?

In short, yes; compensation under cross-undertakings in damages is assessed using the same rules as assessing damages for breach of contract, i.e. the principles of causation, remoteness and mitigation apply.

In the case of Hone v Abbey Forwarding Ltd[1] the Court of Appeal considered a claim for compensation under a cross-undertaking in damages by respondents to a wrongfully obtained freezing injunction. In doing so the court gave useful guidance on how the level of such compensation should be determined and the principles governing the process. To read the full article on this case, please click here.

[1] Hone and others v Abbey Forwarding Ltd and another [2014] EWCA Civ 711