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Rule 65(c) provides that 'no restraining order . . . shall issue except upon the giving of security by the applicant, in such sum as the court deems proper, for the payment of such costs and damages as may be incurred or suffered by any party who is found to have been wrongfully enjoined or restrained.'
The court is not told in so many words to order the applicant to pay the wrongfully enjoined party's damages. But it is told to require a bond or equivalent security in order to ensure that the plaintiff will be able to pay all or at least some of the damages that the defendant incurs from the preliminary injunction if it turns out to have been wrongfully issued. The draftsmen must have intended that when such damages were incurred the plaintiff or his surety, pursuant to Rule 65.1's summary procedure, which despite its wording is applicable to the principal as well as the surety on the bond, see 7 Moore's Federal Practice para. 65.1.05 (2d ed. 1982), would normally be required to pay the damages, at least up to the limit of the bond.
Some courts treat the district ...
