Injunction granted to stop wrongful termination where limitation renders damages an inadequate remedy

AB v CD (CA) [2014]

This case looked at the situation where one party sought an urgent interim injunction to stop the other from wrongfully terminating a contract in circumstances where an exclusion clause would seemingly have prevented the recovery of substantial damages arising from the termination. It is established law that such an injunction will not be granted if damages would be an adequate remedy for the wrongful termination. But how does that apply in cases of an alleged breach of contract where there is a provision limiting the recoverable damages to a level below what might be suffered and which, but for the limitation, might be claimable? The High Court initially refused to grant an injunction but the Court of Appeal (CA) subsequently allowed the injunction.



Decision in High Court:

Decision in CA:

Points to note:

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