The damages sustained by reason of a preliminary injunction or temporary restraining order may be ascertained upon motion on such notice to all interested persons as the court shall direct. Where the defendant enjoined was an officer of a corporation or joint-stock association or a representative of another person, the damages sustained by such corporation, association or person represented, to the amount of such excess, may also be ascertained. The amount of damages so ascertained is conclusive upon all persons who were served with notice of the motion and such amount may be recovered by the person entitled thereto in a separate action. In order to establish the claiming authority’s liability for damages, the person seeking such damages must prove by a preponderance of the evidence that, in causing the temporary restraining order or preliminary injunction to be granted, the claiming authority acted without reasonable cause and not in good faith.
§ 1337.Ascertaining damages sustained by reason of preliminary injunction or temporary restraining order
Article 13-A. Proceeds of Crime—forfeiture · Last amended 1984 · Last verified July 21, 2026
In one sentenceProvides a motion procedure to fix the damages a defendant, or a represented corporation or officer, suffered from a preliminary injunction or TRO, and shields the claiming authority from liability unless the defendant proves by a preponderance of the evidence that it acted without reasonable cause and in bad faith.
Full Text of CPLR 1337
Plain-English Summary
Section 1337 addresses what happens when an injunction or TRO turns out to have restrained a defendant who should not have been restrained. Anyone harmed can move to have those damages ascertained, on whatever notice to interested persons the court directs. If the enjoined defendant was acting as an officer of a corporation or joint-stock association, or as someone else's representative, the loss suffered by that corporation, association, or represented person can be measured too, up to the amount by which the restraint exceeded what was warranted.
Once the court fixes the damages figure, it binds everyone who received notice of the motion, and any of them can go on to recover that amount in a separate action.
The claiming authority gets real protection here that an ordinary civil litigant would not. To collect, the person seeking damages must prove by a preponderance of the evidence that the claiming authority acted without reasonable cause and not in good faith in causing the injunction or TRO to be granted -- a higher bar than showing after the fact that the restraint should not have issued.
Frequently Asked Questions
Who can seek damages for a wrongful preliminary injunction or TRO in a forfeiture case?
The enjoined defendant, and, where the defendant acted as a corporate officer or as someone else's representative, the corporation, association, or represented person on whose behalf the defendant acted.
What must a defendant prove to recover damages from the claiming authority?
By a preponderance of the evidence, that the claiming authority acted without reasonable cause and not in good faith in causing the injunction or restraining order to be granted.
Is the court's damages determination final?
It is conclusive on everyone who was served with notice of the motion, though it does not itself produce payment -- the amount must still be recovered in a separate action.
How is this different from posting an undertaking under section 1336?
Section 1336 lets a court require an undertaking as a condition of vacating or modifying an injunction, while section 1337 supplies the procedure and standard for proving actual damages once the restraint is over.
Does the claiming authority automatically pay damages if the injunction is later vacated?
No. Liability attaches only if the person seeking damages proves the claiming authority acted without reasonable cause and in bad faith, not merely that the injunction did not hold up.
Amendment History
Add, L 1984, ch 669, § 1, eff Aug 1, 1984 and applicable to crimes committed on and after Aug 1, 1984.
Source & verification. Provision text, History, and Advisory
Committee Notes are reproduced verbatim from the Consolidated Laws of New York.
Last verified July 21, 2026.
· Official source
Also known as: CPLR 1337 damages preliminary injunctionforfeiture wrongful injunction damagesclaiming authority bad faith standardCPLR article 13-A TRO damages