A property developer is seeking to prevent a neighbouring landowner from constructing a warehouse that would block natural light to the developer's recently completed residential building. The developer applies for an interim injunction. The proposed warehouse construction has not yet begun, but planning permission has been granted and materials have been delivered to the site. The developer's solicitor advises that the court will require security before granting relief.
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AThe court will require security for costs but not an undertaking in damages, because the warehouse construction has not commenced and therefore no actual disruption to the status quo has occurred yet.
BNo undertaking in damages is required because the injunction is prohibitory in nature, merely preventing the neighbour from acting rather than requiring positive action to be taken.
CAn undertaking in damages is never required where the defendant has obtained valid planning permission, as this indicates the proposed development is in the public interest and outweighs private rights.
DThe court will commonly require an undertaking in damages because a mandatory injunction would disrupt the status quo by requiring the neighbour to refrain from starting planned construction.
✓ Correct answer: D. The court will commonly require an undertaking in damages because a mandatory injunction would disrupt the status quo by requiring the neighbour to refrain from starting planned construction.The correct answer recognizes that although the injunction sought appears prohibitory in form (restraining construction), it may have mandatory effect by disrupting the status quo where the neighbour has obtained planning permission and prepared to build. Courts typically require an undertaking in damages to protect the defendant if the injunction is later found to have been wrongly granted. Distractor 1 incorrectly suggests no undertaking is needed for purely prohibitory relief. Distractor 2 wrongly states that undertakings are never required when planning permission exists. Distractor 3 misapplies the test by focusing on construction timing rather than status quo disruption. Distractor 4 incorrectly suggests mandatory injunctions cannot be granted at the interim stage.
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