Legislation in all Australian jurisdictions allows courts to award damages either in addition to, or in lieu of, specific performance or an injunction. Although damages awarded under this legislation are sometimes known as ‘equitable damages’, to avoid confusion with equitable compensation, they are called ‘Lord Cairns’ Act damages’ in this book.
Lord Cairns’ Act damages are primarily awarded for proprietary torts such as trespass, and for breaches of contract or negative covenant where no other relief is available (either because it is impossible or for discretionary reasons). Their calculation varies according to the facts of the individual case, and the rules are complex. They have also been awarded for equitable or statutory wrongs, but this is controversial.
As noted in this chapter, the placement of this remedy within a functional structure presents difficulties. Lord Cairns’ Act damages have been said to perform multiple functions including compensation and restitution. Strictly speaking, they do not compel performance, but award money instead. However, because they are a monetarised version of specific relief, they follow specific performance and injunctions for the pragmatic reason that they ‘fit’ best here.