(5) Remedies: Defenses Flashcards
What is it a defense to?
Laches (Equitable Remedy)
Injunctions; Reformation; Rescission
Rule:
Laches (Equitable Remedy)
The defense of laches bars a P’s recovery when: (1) there is an unreasonable delay in P’s assertion of rights; AND (2) the D is prejudiced by the delay.
*P’s assertion of rights is when they brought the claim to court the timer starts ticking when they learned of the breach.
*If the statute of limitations has expired, P has the burden of establishing the reasonableness for the delay. If the statute of limitations have not expired then D has the burden of establishing that the delay was unreasonable.
When does P assert their rights under Laches?
*P’s assertion of rights is when they brought the claim to court.
When does the timer start for Laches?
The timer starts ticking when they learned of the breach.
Who has the burden of proving “reasonableness” in relation to P bringing the claim under Laches.
If the statute of limitations has expired, P has the burden of establishing the reasonableness for the delay.
If the statute of limitations has not expired then D has the burden of establishing that the delay was unreasonable.
Defense to?
Unclean Hands (Equitable Remedy)
Injunctions; Reformation; Rescission
Rule:
Unclean Hands (Equitable Remedy)
The doctrine of unclean hands bars a P’s recovery when a P is guilty of unethical, unlawful or otherwise improper conduct related to the subject of the lawsuit.
*The P’s actions do not need to cause injury to the D just be unethical, or unlawful.
Rule & Exception:
Mitigation of Damages
A P cannot recover damages as a result of a breach that could have been avoided. Accordingly, a party must take reasonable steps to mitigate his losses. If they fail to do so, the court will reduce the total damages by the amount that could have been avoided.
- Exception: Affirmative steps to avoid loss are not required if they involve undue risk, burden or humiliation.
Mitigation of Damages - Suitable Substitute
Whether an available alternative transaction is a suitable substitute depends on all the circumstances, including the similarity of performance.
Definition of Misrepresentation and Rule:
Intentional Misrepresentation
Misrepresentation Definition: A false statement of a material fact.
Rule: To state a prima facie case for intentional misrepresentation, a P must show: (1) misrepresentation of a material fact by the D; (2) the D knew that the statement was false (scienter); (3) intent of the D to induce the P; (4) actual and reasonable reliance by the P; AND (5) damages.
Negligent Misrepresentation
To state a prima facie case for negligent misrepresentation a P must show: (1) a misrepresentation (a false statement of a material fact); (2) supplied for the guidance of others in a business transaction; (3) the D knew or should have known that the information was supplied to guide the P in his business transactions; (4) the D was negligent in obtaining or communication the false information; (5) actual and reasonable reliance by the P; AND (6) the false information proximately caused P’s damages.
Definition & Rule:
Concealment
Definition: Concealment is an affirmative Act intended to keep another from learning of a fact
Rule: A concealment is equivalent to a misrepresentation. Generally there is no duty to disclose information, UNLESS: (a) a fiduciary relationship exists; (b) it is necessary to correct an earlier mistake; (c) active concealment of a material fact occurs; OR (d) a person is selling real property and knows material facts that affect the value of the property (that the buyer is unaware of and cannot reasonably discover).
