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CHAPTER 29 Damages for loss caused by wrongful litigation

Civil Jurisdiction and Judgments

Page 654


Damages for loss caused by wrongful litigation

29.01 A cause of action for loss caused by wrongful litigation

If the court declines1 to issue an anti-suit injunction, or if it accepts that where an injunction may not be ordered the gap may not be filled by an artful application for a decree of specific performance,2 the applicant may not be completely without remedy for the legal or equitable wrong which has been done to him. A party to a contract who breaks that contract is in principle liable to pay damages at common law for loss caused by its breach; a person who tortiously seeks to undermine or interfere with a contract may be liable to pay damages in respect of the loss or damage; and a court which declines to issue an injunction has a statutory power3 to order damages in lieu. These principles apply to contracts, torts and equitable wrongs arising from dispute resolution as they apply to all other contexts and legal relationships: why wouldn’t they?

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