Law360 Quotes Prof. Cotter on Injunction Bonds and Sports Betting

A Law360 article titled “NJ Track Clears Hurdle In Long-Shot Bid For Betting Revenue” discusses a recent Third Circuit ruling that a district court had wrongly enjoined the New Jersey Thoroughbred Horsemen’s Trade Association (NJTHA) from proceeding with a plan to offer sports betting. The court further held that NJHTA may recover up to the amount of the injunction bond the NCAA and four professional sports leagues had posted—which, however, amounts to only $3.4 million, compared with the $150 million NJHTA alleges it suffered as a result of the injunction. The article quotes Professor Cotter as stating “the general rule for damages for wrongfully enjoining someone is capped at the amount of the bond,” and that “[i]t seems to be fairly common that the amount of the bond is often less than the actual harm suffered.”