Opinion ID: 2319238
Heading Depth: 1
Heading Rank: 2

Heading: damages for wrongful injunction

Text: In respect to the remedy sought by Macera, we are constrained to point out that no security was ordered in this case. This is not unusual, since the rule makes the ordering of such security prior to the issuance of this opinion not mandatory but subject to the exercise of choice or discretion by the Superior Court. In this type of action involving the enjoining of the award of a public contract, security shall be henceforth required in the absence of a finding of corruption or bad faith. Since no security was filed in this case, we are bound by our prior decisions in Johnson Wholesale Perfume Co. v. Blumen, 63 R.I. 485, 9 A.2d 857 (1939), and Little v. Barnett Carter & Co., 119 R.I. 686, 382 A.2d 815 (1978). In Blumen this court declared that there was no liability at common law for damages suffered by reason of an injunction erroneously granted, unless suit was maliciously brought. The court expressed this proposition in the following language: There is no liability at common law for damages suffered by reason of an injunction erroneously granted, unless suit was maliciously brought. Yonkers v. Federal Sugar Refining Co., 221 N.Y. 206, 116 N.E. 998. In that case Cardozo, J., as a reason for this rule stated that: `Public policy was thought to demand that the free pursuit of remedies in the courts should not be obstructed by the menace of liability for innocent mistake.' The supreme court of the United States has said that `damage arising from the act of the court itself is damnum absque injuria, for which there is no redress except a decree for the costs of the suit, or, in a proper case, an action for malicious prosecution.' Russell v. Farley, 105 U.S. 433, [15 Otto] 438 [26 L.Ed. 1060]. These are typical of practically all the cases which hold that, in the absence of a bond or undertaking for damages or a judgment for costs, there is no liability when an injunction has been improvidently issued. 32 C.J. 434, § 744. Blumen, 63 R.I. at 490, 9 A.2d at 859. We see no indication in the case at bar that the action was maliciously brought. We do believe that Truk Away as an unsuccessful bidder whose bid did not meet the specifications in several significant respects had very questionable standing to seek to vacate the award of this contract. It has nevertheless succeeded in obtaining issuance of the injunction by the Superior Court. Under our case law we are unable to require Truk Away to make Macera whole. Certainly there is no basis upon which we should or could require the city of Warwick, which simply obeyed the injunction, to respond in damages to Macera. Consequently, the only remedy we may grant at this time by virtue of our inherent power is to require that Truk Away not only pay the usual costs of this action but also pay to Macera its reasonable attorneys' fees for defending against the injunction and for prosecuting this appeal. We also must declare that the contract awarded to Truk Away pursuant to advertisements issued by the city of Warwick in good faith based upon the injunction issued by the Superior Court is valid and cannot now be challenged in this or any other subsequent litigation. It should be noted that although the city of Warwick resisted the granting of injunctive relief in the Superior Court, it has not joined Macera in its appeal to this court. For the reasons stated, the appeal of Macera is sustained. The judgment of the Superior Court granting the injunction is reversed. The papers in the case are remanded to the Superior Court for further proceedings to ascertain Macera's costs of this action including reasonable attorneys' fees as set forth above.