AB v CD [2014] EWCA Civ 229 (06 March 2014)

AB v CD [2014] EWCA Civ 229 (06 March 2014)

Where a contractual clause limits or excludes damages for certain heads of loss, the court is not bound to treat damages as an adequate remedy for the purposes of granting an interim injunction. The existence of such a clause does not preclude injunctive relief if there is a substantial risk that the claimant will suffer loss for which damages will not be recoverable due to the clause. The primary obligation remains performance, and the court's discretion to grant an injunction is not ousted by the parties' agreement to limit damages.

Citation
[2014] EWCA Civ 229
Parties
Appellant: AB; Respondent: CD
Jurisdiction
England and Wales
Judgment Date
06 March 2014
Procedural Posture
Appeal From High Court (queen's Bench Division) / Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Interim Injunctions, Adequacy of Damages, Exclusion and Limitation Clauses, Arbitration Act 1996 S.44
Contract Law Civil Procedure Interim Injunctions Adequacy of Damages Exclusion and Limitation Clauses Arbitration Act 1996 S.44

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Parties

AB

Appellant

CD

Respondent

Procedural Posture

Appeal From High Court (queen's Bench Division) / Appeal Judgment

Legal Issues

  1. 1 Whether the existence of a contractual damages limitation or exclusion clause affects the adequacy of damages as a remedy and the grant of an interim injunction

Ratio Decidendi

Where a contractual clause limits or excludes damages for certain heads of loss, the court is not bound to treat damages as an adequate remedy for the purposes of granting an interim injunction. The existence of such a clause does not preclude injunctive relief if there is a substantial risk that the claimant will suffer loss for which damages will not be recoverable due to the clause. The primary obligation remains performance, and the court's discretion to grant an injunction is not ousted by the parties' agreement to limit damages.

Court Disposition

Appeal allowed

Orders

  • Interim injunction to be granted; parties to agree terms or submit written submissions if not agreed