Defenses to equitable relief

Question 1

Clean hands doctrine

Answer 1

Looks to see if plaintiff soiled his hands to obtain the right he now asserts. The misconduct must be related to the transaction currently in court.

Question 2

Laches

Answer 2

1) Neglect to bring suit for an unreasonable and unexplained length of time;
2) Under circumstances permitting diligence, they could have brought suit; AND
3) prejudice to the defendant.

May be simplified into unreasonable and unexplained delay coupled with prejudice to defendant.

Always in the discretion of the court. May be used along with SOL.

Question 3

Equitable tolling

Answer 3

Tolls the SOL of claim while pursuing claim in good faith in a different court. Elements are:

1) Timely notice to defendant of other claim;
2) Lacks of prejudice to the defendant;
3) Plaintiff’s conduct in reasonable good faith

Question 4

Equitable estoppel

Answer 4

Prevents a party from lulling another party past the SOL due to negotiations or the like. Conduct can be less than fraud: misleading is sufficient.

Elements:

1) the actor usually must have knowledge of the true facts. Communicates something in an untrue way by words, action, or inaction;
2) There must be a reasonable reliance on the statement;
3) The person to whom the communication is made would be harmed materially if actor who made the statement was to ac in a way inconsistent with prior communication.

Question 5

Fraud

Answer 5

Elements for fraud, misrep, or deceit:

1) False representation of fact by defendant;
2) Knowledge or belief by defendant that the representation is false (scienter);
3) Intent to induce action or acquiescence
4) Justifiable reliance by the plaintiff;
5) Actual damages

Question 6

Quantum Meruit

Answer 6

Quasi K or legal fiction. Unjust enrichment. In law, no need to show lack of adequate remedy bc damages. In equity, this will be constructive trust or accounting.

elements:

1) valuable services or things furnished;
2) for person sought to be charged;
3) which services or materials are accepted by the person sought to be charged;
4) Under circumstances where reasonable person would believe payment is expected.

Question 7

Constructive trust

Answer 7

Component of restitution. Imposed without regard to agreement and used to prevent unjust enrichment. Returns something that equity and good conscious states doesn’t belong to defendant.

Applicable when:
Minority - restricts its application to misdealing of fiduciaries (requires fiduciary duty and breach)
Majority - It is a flexible remedial device to be used whenever special restitution is appropriate under the circumstances.

Question 8

Equitable tracing

Answer 8

If trustee wrongfully sells or trades property of the trust, then plaintiff may charge defendant with the proceeds derived.