Watson's Dairies v A G Lambert & Partners & Ors

Watson's Dairies v A G Lambert & Partners & Ors

Damages are an adequate remedy for the Applicant in respect of the supply of fungible goods (milk), and the Applicant can obtain milk from other sources in the market. The injunction would improperly tie Respondents into a contract they wish to exit and subvert free market negotiations. The second stage of the American Cyanamid test (adequacy of damages) is not satisfied, so the injunction should not be continued.

Parties
Applicant: Watson's Dairies Limited; Respondents: A G Lambert & Partners & Ors
Jurisdiction
England and Wales
Judgment Date
06 October 2020
Procedural Posture
Injunction Application / Return Date Hearing for Interim Injunction
Outcome
Interim injunction discharged; not continued until trial.
Legal Topics
Interim Injunctions, Supply Contracts, Adequacy of Damages, Specific Performance
Contract Law Commercial Law Interim Injunctions Supply Contracts Adequacy of Damages Specific Performance

Case Brief

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Parties

Watson's Dairies Limited

Applicant

A G Lambert & Partners & Ors

Respondents

Procedural Posture

Injunction Application / Return Date Hearing for Interim Injunction

Legal Issues

  1. 1 Whether the interim injunction restraining Respondents from selling milk elsewhere should be continued until trial or further order
  2. 2 Whether damages are an adequate remedy for the Applicant
  3. 3 Whether the Applicant has a good arguable case or serious issue to be tried

Ratio Decidendi

Damages are an adequate remedy for the Applicant in respect of the supply of fungible goods (milk), and the Applicant can obtain milk from other sources in the market. The injunction would improperly tie Respondents into a contract they wish to exit and subvert free market negotiations. The second stage of the American Cyanamid test (adequacy of damages) is not satisfied, so the injunction should not be continued.

Court Disposition

Interim injunction discharged; not continued until trial.

Orders

  • The injunction granted on 30 September 2020 is discharged and will not be continued.