Equitable Defenses

Question 1

Does equitable defenses prevent a plaintiff from recovering money damages?

Answer 1

No.

Question 2

Unclean Hands

Answer 2

A plaintiff who engages in unclean hands can be barred from equitable remedy.

Question 3

What must the defendant show to prove the plaintiff dealt with Unclean Hands?

Answer 3

1. Serious misconduct by the plaintiff - unethical, immoral, bad faith
2. Misconduct must closely relate to the plaintiff’s claim (earlier misconduct or misconduct that is unrelated doesn’t count).

Question 4

Laches

Answer 4

A court may deny equitable remedy if the plaintiff:

1. Unreasonably delayed pursuit of relief after the plaintiff knew or should have known about the claim

and

2. The delay prejudiced the defendant (because the defendant changed position or lost evidence, memories lost).

Example: plaintiff delayed pursuit of equitable relief and defendant followed usual document retention policy and destroyed docs. Also, a key witness died. Laches is available.

Question 5

Equitable Estoppel

Answer 5

A defense to legal and equitable claims

Question 6

What must a party show to establish equitable estoppel?

Answer 6

1. The party to be estopped intentionally or through gross negligence engaged in deceptive conduct or made deceptive statements
2. The party seeking estoppel relied on or was misled by the deception

and

3. The party seeking estoppel was harmed by it.