Damages on an undertaking as to damages are assessed by reference to whether the damage was of a type or character that was reasonably foreseeable when the injunction was granted, not whether the actual quantum was foreseen. The process of assessment cannot be constrained by a rigid formulation. A party who obtains an interlocutory injunction affecting a major construction contract may be liable for the full contractual costs incurred by the restrained party, including redesign costs, delay costs, and changed construction methods, where those categories of loss were foreseeable. The party giving the undertaking has no entitlement to be involved in the design and construction process merely because of potential liability under the undertaking.
The full text is available to signed-in members, including the 9 later cases that cite this judgment.
2 of the 9 citing cases carry a classified treatment. How each court treated it is available to signed-in members.