Legal Expenses Coverage Includes Injunctive Relief

Oct 22, 2026 Benn-Ibler Rechtsanwälte

The Austrian Supreme Court (Oberster Gerichtshof, hereinafter OGH) was required to determine whether a claim for injunctive relief arising from defamation and injurious falsehood under Section 1330 of the Austrian Civil Code (Allgemeines Bürgerliches Gesetzbuch, hereinafter ABGB) was covered by the damages cover afforded under a legal expenses insurance policy.

Negative Google review gives rise to proceedings

In the case at hand, the claimant was mentioned by name in a public negative Google review of his employer. He sought a declaration that the policy covered proceedings against the reviewer for retraction and injunctive relief in respect of defamation and injurious falsehood under Section 1330 of the ABGB.

The insurer declined cover for the claim for injunctive relief. Under Article 19.2.1 of the Austrian General Conditions for Legal Expenses Insurance (Allgemeine Bedingungen für die Rechtsschutz-Versicherung ARB 2022), damages cover extends to the pursuit of claims for damages arising under statutory liability provisions.

Injunctive relief as redress for loss

The OGH referred to its decision in 7 Ob 32/26w, delivered only shortly beforehand, and confirmed that claims for injunctive relief arising from defamation and damage to credit under Section 1330 of the ABGB fall within the scope of damages cover.

The decisive consideration in construing the policy is not the doctrinal classification of the claim, but how it would be understood by an average, reasonably informed policyholder. Although a claim for injunctive relief does not seek monetary compensation, its purpose is to prevent further infringements and thereby provide redress for loss already sustained.

In the OGH’s view, a claim for injunctive relief therefore has a restorative effect comparable to a claim for damages seeking restitution in kind. It serves to restore the original, undisturbed situation and to prevent further infringements of the same kind.

As the point of law had already been settled by the decision in 7 Ob 32/26w, the OGH dismissed the insurer’s appeal on a point of law as inadmissible. The proposed claim for injunctive relief therefore falls within the agreed damages cover.

OGH 7 Ob 87/26h (18 August 2026)