Coyne-Delany Co. v. Capital Development Board
United States Court of Appeals for the Seventh Circuit
717 F.2d 385 (1983)
Coyne-Delany (plaintiff) obtained a preliminary injunction against the Capital Development Board (defendant) reopening bids on a state contract, based on a claimed property right in bidding that a subsequent Illinois Supreme Court decision later rejected; the Seventh Circuit reversed the injunction, and after the delay caused the Board's rebid to come in $56,000 higher than an earlier low bid, the Board sought damages against Coyne-Delany and its surety up to the $5,000 injunction bond amount. The trial court denied any damages based on the absence of bad faith and the intervening change in law, and the Board appealed again.
Whether a defendant that has prevailed against a preliminary injunction is entitled to damages on the injunction bond, up to the amount of the bond.