1. Where an injunction is granted to a party without requiring
him to give bond or other undertaking, the circuit court has no
power to award damages to the injured party except by such a decree
in the matter of costs as may be deemed equitable.
2. In the absence of either an act of Congress or a rule of
court on the subject, the circuit court can, before granting an
injunction, impose terms, and it can relieve therefrom whenever it
would be oppressive or inequitable to continue them.
3. Where neither the bond given nor the statutes nor any rule of
court prescribes a specific mode of assessing damages, and the
condition of the bond is simply to pay such as the adverse party
may sustain by reason of the injunction, if the court finally
decides that the party to whom it was granted is not entitled
thereto,
semble that the court may, as an incident to its
jurisdiction, cause them to be assessed under its own direction or
leave the party to his action at law.
4. The court decreed that this was not a case for damages.
Held that its action in the premises approaches so nearly
to an exercise of discretion, that a very clear showing must be
made to induce this Court to reverse it.
MR. JUSTICE BRADLEY delivered the opinion of the Court.
This case comes before us by appeal from a decree in a case in
equity wherein Jesse P. Farley, as receiver of certain branch lines
of the St. Paul and Pacific Railroad Company, and of all lands and
other property appurtenant thereto, was complainant, and the firm
of De Graff & Co., the Northern Pacific Railroad Company, the
Lake Superior and Mississippi Railroad Company, B. S. Russell, G.
W. Cass, receiver of the Northern Pacific Railroad Company, and C.
W. Mead, general manager of said company, were defendants. The
complainant was appointed receiver Aug. 1, 1873, in a foreclosure
suit brought of John S. Kennedy and others, trustees under a
mortgage given by the St. Paul and Pacific Railroad Company to
secure fifteen millions of dollars of bonds issued by a
subsidiary
Page 105 U. S. 434
corporation called the First Division of the St. Paul and
Pacific Railroad Company, which had a contract to build the
railroad, and a lease of the road for ninety-nine years. Amongst
the assets supposed by the receiver to be subject to this mortgage
was certain railroad iron, which had been purchased in England with
the money raised by the sale of the bonds, to-wit, 1,700 tons lying
at Glyndon, on the line of the road, and 1,000 tons at Duluth,
claimed by De Graff & Co., and 1,860 tons at Duluth, claimed by
B. S. Russell -- that at Duluth being mostly held in the custom
house for unpaid duties, but some of it being about to be
reshipped. The bill in this case was filed by the receiver in the
state district court for the County of Ramsey on the 21st of June,
1875, seeking to set aside the respective transfers of iron by
virtue of which De Graff & Co. and Russell claimed to hold it,
and for an injunction to restrain them from removing it, or taking
it from the custom house.
By a statute of Minnesota it is declared that,
"When no special provision is made by law as to security upon
injunction, the court or judge allowing the writ shall require a
bond on behalf of the party applying for such writ in a sum not
less than two hundred and fifty dollars, executed by him or some
person for him, as principal, together with one or more sufficient
sureties, to be approved by said court or judge, to the effect that
the party applying for the writ will pay the party enjoined or
detained such damages as he sustains by reason of the writ if the
court finally decide that the party was not entitled thereto. The
damages may be ascertained by a reference or otherwise as the court
shall direct."
2 Bissell's Statutes, 806, sec. 121.
On filing the bill in this cause, the complainant (the said
receiver) obtained a temporary injunction upon giving to the
defendants a bond in the penalty of $10,000, with the following
condition, to-wit:
"Whereas the said plaintiff is about to apply to this court for
a temporary injunction enjoining and restraining the defendants,
and each of them, from shipping, removing, selling, hypothecating,
transporting, interfering, or intermeddling with 4,560 tons of iron
rails now lying at Glyndon and Duluth, Minnesota, or any part
thereof, now therefore if the plaintiff will pay the parties
enjoined by such
Page 105 U. S. 435
writ or detained thereby such damages as they or either or any
of them may sustain by reason of the writ, if the court finally
decide that the party was not entitled thereto, the above
obligation shall be void, else of full force and virtue."
De Graff & Co. having by consent rebonded 1,000 tons of the
iron claimed by them, the court, on the 11th of August, 1875,
required a further bond from the complainant in the sum of $79,000,
the condition of which was as follows, to wit:
"Whereas an injunction has heretofore been granted in this court
enjoining and restraining the said defendants, and each of them,
from shipping, removing, selling, hypothecating, transferring, or
interfering, or intermeddling with 4,500 tons of iron rails now
lying at Glyndon and Duluth, Minnesota, or any part thereof, and
whereas said injunction is still in force and effect except as to
one thousand tons of said iron, claimed by said De Graff & Co.,
at Duluth, aforesaid; and whereas the said court has ordered, as a
condition for the continuance of said injunction, that the
plaintiff execute to the defendants herein a bond in the sum of
seventy-nine thousand dollars, in addition to the bond for ten
thousand dollars heretofore given by the plaintiff on the issuance
of the injunction, now therefore if the plaintiff will pay the
parties enjoined by such injunction or detained thereby such
damages as they or either or any of them may sustain by reason of
such injunction if the court finally decide that the party was not
entitled thereto, the above obligation shall be void, else of full
force and virtue."
The defendants severally answered the bill, and on the 1st of
March, 1876, on application of the complainant, the cause was
removed to the Circuit Court of the United States for the District
of Minnesota. After taking a large amount of evidence, it was
brought to a hearing, and on the 13th of October, 1877, a final
decree was made dismissing the bill as to De Graff & Co.,
without costs to either party. As to the defendant Russell, who was
charged with holding 1,860 tons of the iron, it appeared that he
was acting as agent for William G. Morehead, who was trustee or
agent for the First Division Company in procuring the iron and
carrying on the work of construction, and who had sold to De Graff
& Co., subcontractors, the iron claimed by them, in part
payment of moneys due them for
Page 105 U. S. 436
work, and had pledged a portion of the 1,860 tons of iron
(claimed by Russell) to pay Jay Cooke & Co. for advances of
money, and Jay Cooke & Co. had pledged and sold it to the
United States (the Navy Department) for a debt due to it. Some
1,090 tons of the 1,860 tons in question remained at Duluth unsold,
and this was claimed by Edward M. Lewis, trustee in bankruptcy of
Morehead; but the court held that it was subject to the mortgage,
and that the receiver was entitled to it. The decree on this part
of the case was as follows, to wit:
"It is also further ordered, adjudged, and decreed that the said
Farley, as receiver, as against the defendant B. S. Russell, and
against the defendant Edward M. Lewis, trustee in bankruptcy of
William G. Morehead and others, is entitled, for the benefit of the
trust which he represents, to all the iron rails in controversy
herein not sold to De Graff & Co., and not pledged and sold to
the Navy Department, which said iron rails, subject to the customs
duties to the United States, thus decreed to the said Farley as
receiver, he is authorized to use in the construction of the said
extension lines, or to sell at the best prices and on the best
terms practicable, and apply the net proceeds thereof to the credit
of the mortgage, dated April 1, 1871, executed by the St. Paul and
Pacific Railroad Company to Horace Thompson, George L. Becker, and
William G. Morehead, trustees, who in the said trust have been
succeeded by the said Wetmore, Pearsal, and Denny, as trustees, and
which mortgage is now being foreclosed in this court, neither party
as against the other to recover costs or damages. It is further
adjudged and decreed that all transfers of the 1,860 tons of iron
in controversy herein claimed by defendant Russell from William G.
Morehead to said Russell, except transfers relating to the iron
pledged to the Navy Department, are null and void, and that said
Russell has no right, title, or interest therein as against the
said Farley and said trustees. It is further ordered, adjudged, and
decreed that said Farley has no right, title, or interest in the
iron transferred to the Navy Department, and which is claimed
herein by defendants Russell and Lewis; and it is further adjudged
that neither the plaintiff nor the defendant Russell is entitled to
costs or damages herein. "
Page 105 U. S. 437
Russell alone appealed from this decree, and appealed only from
that portion of it which declared that neither party as against the
other is entitled to costs or damages.
That an appeal does not lie from a decree in equity as to the
costs merely is well settled.
Canter v. American & Ocean
Insurance Co., 3 Pet. 307;
Elastic Fabrics
Company v. Smith, 100 U. S. 110. But
it is contended by the appellant that the circuit court had no
power to decree that he was not entitled to damages, thereby
precluding him from recovering damages on the injunction bond, and,
if it had any power to make a decree on the subject of damages, the
decree denying him damages in this case is erroneous.
Had the cause remained in the state court, there can be no doubt
that that court, under the Minnesota statute which required an
injunction bond to be given, could have determined the question of
damages. The statute expressly declares that "the damages may be
ascertained by a reference, or otherwise, as the court shall
direct." But the circuit court of the United states is not governed
in its practice in equity by the laws of the state in which it
sits, but by the rules of practice prescribed by this court and by
the circuit court not inconsistent therewith, and when these are
silent, by the practice of the High Court of Chancery in England
prevailing when the equity rules were adopted, so far as the same
may reasonably be applied. Equity Rule 90. The injunction bond
taken by the state court, it is true, comes into the circuit court
with the other proceedings in full force; but the power of the
circuit court to deal with it depends upon the principles which
govern the practice of that court, the same as if it had been
originally taken by its direction.
The question then arises whether the circuit courts have any
power to make a decree on the subject of damages arising from an
injunction, where an injunction bond has been required. Where no
bond or undertaking has been required, it is clear that the court
has no power to award damages sustained by either party in
consequence of the litigation, except by making such a decree in
reference to the costs of the suit as it may deem equitable and
just. Has it any such power, or any power over the subject, where
such a bond has been given?
Page 105 U. S. 438
For a solution of this question it will be proper to advert
briefly to the history and object of this kind of obligations.
It is a settled rule of the court of chancery, in acting on
applications for injunctions, to regard the comparative injury
which would be sustained by the defendant, if an injunction were
granted and by the complainant if it were refused. Kerr on
Injunctions, 209, 210. And if the legal right is doubtful either in
point of law or of fact, the court is always reluctant to take a
course which may result in material injury to either party, for the
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. To remedy this difficulty, the court, in the
exercise of its discretion, frequently resorts to the expedient of
imposing terms and conditions upon the party at whose instance it
proposes to act. The power to impose such conditions is founded
upon, and arises from, the discretion which the court has in such
cases, to grant, or not to grant, the injunction applied for. It is
a power inherent in the court as a court of equity, and has been
exercised from time immemorial. The older authorities refer to
numerous instances in which it has been exercised. Chief Baron
Gilbert in his Forum Romanum, p. 196 (repeated in Bacon's
Abridgment, title Injunction, C), speaking of the course where an
answer is put in, denying the equity of the bill, followed by a
rule
nisi to dissolve the injunction, says:
"The plaintiff must show cause either upon the merits, or upon
filing of exceptions; if upon the merits, the court may put what
terms they please upon him, as bringing in the money, or paying it
to the party, subject to the order of the court, or giving judgment
with a release of errors, and consenting to bring no writ of error,
or to
give security to abide the order on hearing, or the
like."
See also Newland's Ch.Pract. 223-224; Kerr, Injunctions
212, 622; Story, Eq.Jur., secs. 958
b, 959
d. In
Marquis of Downshire v. Lady Sandys, 6 Ves.Jr. 107, A.D.
1801, Lord Eldon said if there was a real doubt on the subject in
controversy, he would direct an issue,
"taking care that if in the result of such a direction the
defendant should be prejudiced by not being permitted to cut in the
meantime [trees claimed to be ornamental],
Page 105 U. S. 439
the plaintiff should undertake to pay the value if the decision
should be against him."
In a similar case, in 1825, the same judge made an order that
the plaintiff should go before the master and give such security as
would in the master's judgment secure to the defendants the value
of all the trees which they should be prevented from cutting by the
injunction, in case it should finally turn out in the judgment of
the court that they ought not to have been enjoined in equity.
Wombwell v. Belasyse, id. 110, note.
Mr. Kerr, in his treatise on Injunctions, says:
"In balancing the comparative convenience or inconvenience from
granting or withholding an injunction, the court will take into
consideration what means it has of putting the party who may be
ultimately successful in the position he would have stood if his
legal rights had not been interfered with. The court may often by
imposing terms on the one party, as the condition of either
granting or withholding the injunction, secure the other party from
damage in the event of his proving ultimately to have the legal
right. . . . The defendant may be required to do such acts, or
execute such works, or otherwise deal with the same as the court
shall direct, or to enter into an undertaking to refrain from doing
in the meantime the acts complained of by the bill, or to abide the
order the court may make as to damages or otherwise, in the event
of the legal right being determined in favor of the plaintiff. . .
. So, on the other hand, as a condition of granting an injunction,
[the court may] require the plaintiff to enter into an undertaking
as to damages in the event of the right at law being determined in
favor of the defendant, and the injunction proving to have been
wrongly granted."
Kerr, Injunctions 212. Again, in another place, he says:
"In doubtful cases where damage may be occasioned to the
defendant in the event of an injunction or interim restraining
order proving to have been wrongly granted, the court will require
the plaintiff, as a condition of its interference in his favor, to
enter into an undertaking to abide by any order it may make as to
damages."
Kerr 622. In
Wilkins v. Aikin, 17 Ves.Jr. 422, where a
bill was filed to prevent the infringement of a copyright, but it
being doubtful whether the defendant did more than make allowable
extracts from the plaintiff's
Page 105 U. S. 440
work, Lord Eldon said:
"The proper course in this instance will be to permit this work
to be sold in the meantime, the defendant undertaking to account
according to the result of the action."
P. 426.
The same practice has prevailed in this county, in some cases in
pursuance of statute and in others, by the action of the court
itself. As early as 1723, a law was passed in Maryland that any
person desiring to proceed in equity against a verdict or judgment
rendered against him in the county court should be required to give
security in double the amount of the debt for the due prosecution
of the injunction and payment of debt and all costs and damages
that should accrue in the chancery court, or should be occasioned
by the delay, unless the court of chancery should decree to the
contrary, and in all things obey such order and decree as the court
should make. In 1793, an additional law was passed to the effect
that whenever application should be made for an injunction to stay
proceedings at law, the chancellor should have power and discretion
to require the applicant to give a bond to the plaintiff at law,
with condition to perform such order or decree as the chancellor
should finally pass in the cause.
Similar laws were passed in Virginia in 1787 and in New Jersey
in 1799, and no doubt in other states at an early date. Their
object was, where an adjudication had already been had at law, to
make it compulsory on the chancellor to require security before
granting an injunction. The jealousy of the courts of law at the
interference of the court of chancery with their judgments is a
matter of historical notoriety. But these laws did not interfere
with the chancellor's discretionary power to require a bond in all
other cases.
Regulations substantially similar to those above adverted to
were prescribed by general rule of the Court of Chancery of New
York prior to the adoption of the Revised Statutes. In 1828 they
were codified, with amendments, in that revision. But the rule, as
well as the statute, only related to injunctions for staying
proceedings at law.
In 1830, the Chancellor of New York, for the first time, made a
general rule (No. 31) that where no special provision was made by
law as to security, the vice-chancellor or master
Page 105 U. S. 441
who allowed an injunction out of court should take from the
complainant or his agent a bond to the party enjoined, either with
or without sureties in the discretion of the officer, in such sum
as might be deemed sufficient, not less than $500, conditioned to
pay such party all damages he might sustain by reason of such
injunction if the court should decide that the complainant was not
entitled to the same, and that the damages might be ascertained by
a reference or otherwise, as the court should direct. 1 Hoffman
Ch.Pr. 80; 1 Barb.Ch.Pr. 622; 2 Paige (N.Y.) 122. The object, no
doubt, was to prevent hasty and oppressive injunctions from being
issued by subordinate officers.
This rule, enlarged and made applicable to all courts and
judges, was copied in the New York Code of Procedure of 1848, sec.
195 (now sec. 222), and has been followed in other codes and
systems of practice in other states.
See 2 R.S.Wisconsin
748; also Laws of Illinois, Iowa, Colorado, &c. It was
substantially adopted in the Chancery Rules of New Jersey in 1853,
except that it was left to the discretion of the officer to require
a bond or not. It was copied in the statutes of Minnesota, under
which the bonds in the present case were taken, as may be seen by
comparing it with the section of said statutes already cited.
But no act of Congress or rule of this court has ever been
passed or adopted on this subject. The courts of the United states
therefore must still be governed in the matter by the general
principles and usages of equity. To these we have already adverted
so far as concerns the power to require security or impose terms
before granting an injunction. It remains to notice the control
which a court of chancery may exercise in relieving from or
modifying such terms during the progress or at the termination of
the cause, and of enforcing and carrying out the conditions imposed
or the undertakings entered into.
Since the discretion of imposing terms upon a party as a
condition of granting or withholding an injunction is an inherent
power of the court, exercised for the purpose of effecting justice
between the parties, it would seem to follow that in the absence of
an imperative statute to the contrary, the
Page 105 U. S. 442
court should have the power to mitigate the terms imposed or to
relieve from them altogether whenever in the course of the
proceedings it appears that it would be inequitable or oppressive
to continue them. Besides, the power to impose a condition implies
the power to relieve from it. If, for example, it is deemed proper,
upon an application for an injunction, to require, as a condition
of granting or withholding it, that a sum of money should be paid
into court or that a deed or other document should be deposited
with the register, and the developments of the case are afterwards
such as to make it manifestly unjust to retain the fund or document
and deprive the owner of its use, the court assuredly has the power
(though undoubtedly to be exercised with caution) to order it to be
delivered out to the party. When the pledge is no longer required
for the purposes of justice, the court must have the power to
release it and leave the parties to the ordinary remedies given by
the law to litigants
inter sese. Where the fund is
security for a debt or a balance of account or other money demand,
this would rarely be allowable; but in many other cases it might
not unfrequently occur that injustice would result from keeping
property impounded in the court. On general principles, the same
reason applies where, instead of a pledge of money or property, a
party is required to give bond to answer the damage which the
adverse party may sustain by the action of the court. In the course
of the cause or at the final hearing, it may manifestly appear that
such an extraordinary security ought not to be retained as a basis
of further litigation between the parties; that the suit has been
fairly and honestly pursued or defended by the party who was
required to enter into the undertaking, and that it would be
inequitable to subject him to any other liability than that which
the law imposes in ordinary cases. In such a case, it would be a
perversion, rather than a furtherance, of justice to deny to the
court the power to supersede the stipulation imposed.
Against this view, however, the appellants have strenuously
urged the case of
Novello v. James, 5 De G., M. & G.
876, in which an injunction against the sale of certain composition
of Mendelssohn in violation of a copyright was obtained on an
Page 105 U. S. 443
undertaking of the plaintiff to abide the order of the court as
to damages. After a three years' litigation, the case was decided
against the plaintiff. The legal title having been a doubtful one,
the plaintiff moved that his bill might be dismissed without costs,
and the defendant moved that the plaintiff might be decreed to pay
him damages sustained by reason of the injunction. The
vice-chancellor decided that the proper damages would be the costs
of the suit. Upon appeal, this order was reversed upon the ground
that the defendant, under the circumstances, had a right to insist
on having his damages ascertained either by reference to an officer
of the court, or by a trial at law. The Lords Justices thought that
it would be unjust to the defendant to disregard, or not to give
effect to, the undertaking which was the price at which the
plaintiff accepted the injunction, and that there was not
sufficient evidence before the vice-chancellor to enable him to
decide what the defendant's damages amounted to, or whether the
costs, supposing him not otherwise entitled to them, were a just
measure of the damages.
It is evident from a careful reading of this case that the
decision was based on the merits and that the Lords Justices were
of opinion that the defendant was entitled to damages not as a
matter of course because an undertaking had been given, but as a
matter of justice and equity which the undertaking would enable him
to enforce. They held therefore that evidence of the damages should
have been taken and that the decree of the vice-chancellor was
erroneous because made without any such evidence. We do not
perceive that this case is at all adverse to the view which we have
taken.
When the court sees no just cause for superseding or suspending
the effect of an injunction bond or undertaking, it should be
enforced in pursuance of its terms, and the party for whose benefit
it was given will be entitled to an assessment of damages.
But then arises the question (not essential, however, to be
decided in this case) how the damages should be assessed, and on
this point different opinions have been entertained. Sometimes the
form of the bond itself, or the order requiring it, or the statute
or rule of court under which it is given, prescribes
Page 105 U. S. 444
the mode of assessment, as by a reference, or otherwise, as the
court shall direct. This is the ordinary course is England, and is
that prescribed in Chancellor Walworth's order, which, as before
stated, is followed in several state statutes, and, amongst others,
in the statute of Minnesota. In such case, no question can arise as
to the authority of the court of chancery to cause the damages to
be assessed under its own direction.
But where, as in the present case, no specific provision is made
either in the bond or by any statute or rule of court, and the
condition of the bond is simply to pay such damages as the parties
enjoined may sustain by reason of the injunction if the court
finally decide that the party was not entitled thereto, as before
stated, some difference of opinion exists as to the power of the
court of chancery to assess the damages and whether the only proper
method is not an action at law on the bond. The appellants insist
that the latter is the only proper and legal course. In the case of
Bein v. Heath,
12 How. 168,
53 U. S. 179,
Mr. Chief Justice Taney made this remark:
"A court proceeding according to the rules of equity cannot give
a judgment against the obligors in an injunction bond when it
dissolves the injunction. It merely orders the dissolution, leaving
the obligee to proceed at law against the sureties if he sustains
damage from the delay occasioned by the injunction."
In that case an injunction bond had been given to stay
proceedings on an executory process in the Circuit Court for the
District of Louisiana, and in an action on the bond, that court had
given judgment against the sureties not merely for the damages
arising from the delay caused by the injunction, but for the whole
debt, interest and costs, in accordance with the law of Louisiana,
where injunction bonds are binding to that extent, and where
judgment is usually given against the sureties as parties to the
cause, on dismissing the injunction, similar to the proceeding
against stipulators in admiralty. This Court held that the circuit
courts sitting in equity could not take such a bond or taken it
such effect, and reversed the judgment. The remark that the bond
must be prosecuted at law was a mere passing remark; it was so
prosecuted in that case; but from the great experience of the Chief
Justice, it undoubtedly expressed the prevailing practice with
regard to ordinary
Page 105 U. S. 445
injunction bonds given under the Maryland statute in cases of
injunctions to stay proceedings at law. Whether the remark can be
understood as having a wider scope is doubtful.
A decision on the point, however, was made by Mr. Justice
Curtis, on the first circuit, in the case of
Merryfield v.
Jones, 2 Curtis C.C. 306. That was a patent case in which an
injunction had been issued upon condition of entering into bond to
pay the defendant any damages he might suffer by reason of the
injunction if finally determined not to be rightful. On dismissal
of the bill, motion was made to refer to a master the question of
damages. Mr. Justice Curtis denied the motion, holding that the
party's remedy was an action at law, but he only referred to the
case of
Bein v. Heath. The opinion is brief, and it does
not appear that the question was very fully examined. The learned
Justice seemed to think that, inasmuch as the bond gave a legal
action, the court sitting in equity had no jurisdiction over the
question of damages.
Other cases are referred to by the counsel of the appellants to
sustain their position, but upon a careful examination we are not
satisfied that they furnish any good authority for disaffirming the
power of the court having possession of the case, in the absence of
any statute to the contrary, to have the damages assessed under its
own direction. This is the ordinary course in the Court of Chancery
in England, by whose practice the courts of the United states are
governed, and seems to be in accordance with sound principle. The
imposition of terms and conditions upon the parties before the
court is an incident to its jurisdiction over the case, and having
possession of the principal case, it is fitting that it should have
power to dispose of the incidents arising therein, and thus do
complete justice, and put an end to further litigation. We are
inclined to think that the court has this power, and that it is an
inherent power, which does not depend on any provision in the bond
that the party shall abide by such order as the court may make as
to damages (which is the usual formula in England), nor on the
existence of an express law or rule of court (as adopted in some of
the states) that the damages may be ascertained by reference or
otherwise, as the court may direct, this being a mere appendage to
the principal provision requiring a bond to
Page 105 U. S. 446
be taken, and not conferring the power to take one, or to deal
with it after it has been taken. But whilst the court may have (we
do not now undertake to decide that it has) the power to assess the
damages, yet if it has that power, it is in its discretion to
exercise it or to leave the parties to an action at law. No doubt
in many cases, the latter course would be the more suitable and
convenient one.
In the present case, however, the court did not attempt to
assess any damages which the defendants may have sustained in
consequence of the injunction and proceedings in the cause, but
decreed that it was not a case for damages -- in other words, that
the bond ought not to be prosecuted. That damages were sustained is
very probable. Such a litigation as this was could hardly fail to
result in damage to all the parties engaged in it. But it is
generally
damnum absque injuria. The question before the
court, or at least that which it undertook to determine, was
whether, under the circumstances of the case, any damages at all
ought to be recovered. Its decision was that none ought to be
recovered, or, in effect, that the bond ought not to be prosecuted.
In view of what has already been said, we think that the court had
power to decide this question.
But the appellants contend that even if the court had the power
to pass upon the question at all, its decision was erroneous and
ought to be reversed on the merits. On this point the judgment of
the court approaches so near to an exercise of discretion that we
should require a very clear case to be made in order to induce us
to reverse it. The conduct of the parties and the course of
litigation in the court below pass so directly under the inspection
of that court, as to give it many advantages which no other court
can possess, for forming a correct decision on the question,
whether any extra damages should be allowed for the issuance of the
injunction. Nevertheless we have looked at the case with the view
of ascertaining whether injustice has been done. And at the very
threshold of the inquiry we are met by the prominent fact that the
injunction has never been entirely dissolved, and it has never been
decided that the complaint was not entitled to it, at least for a
portion of the iron claimed by the appellant. The
Page 105 U. S. 447
latter strenuously defended the suit as to the whole; but it
turns out, on the final hearing, that as to more than half of it
his claim is unsupported and that the injunction was properly
issued. A decree was made accordingly, from which no appeal has
been taken. We must presume that it was equitable and just. This
fact alone would make a
prima facie case for the decree in
relation to damages. We have not been able to find anything in the
record which leads us to think that it was erroneous or
improper.
Decree affirmed.
MR. JUSTICE GRAY did not sit in this case nor take any part in
deciding it.