Equity Flashcards
Injunction requirements
(1) remedy at law is inadequate or unavailable
(2) Injunction is enforceable b the court
(3) Harm to the π outweighs the burden of the injunction on the ∆.
Temporary Restraining Order (TRO) requirements
Can issue ex parte upon showing:
(1) irreparable harm to the π will occur without TRO
(2) benefit to the π heavily outweighs burden on ∆
(3) π is likely to succeed on the merits
(4) interest of the general public favor issuance of TRO
(5) status quo must be maintained
Preliminary injunction requirements
∆ must receive notice and evidentiary hearing AND the same as TRO:
(1) irreparable harm to the π will occur without TRO
(2) benefit to the π heavily outweighs burden on ∆
(3) π is likely to succeed on the merits
(4) interest of the general public favor issuance of TRO
(5) status quo must be maintained
Most courts require posting a bond / “undertaking”
Specific performance requirments
(1) existence of a valid contract and fulfillment of all its conditions
(2) inadequacy of legal remedies
(3) enforcement is feasible and fair
(4) mutuality of performance (injured party must have already performed his part of the bargain)
(5) absence of any defenses.
Negative mutuality: NY does not require specific performance in cases where both parties are incapable of performing.
Requirements to enforce covenant not to compete
(1) Covenant must be expressly stated
(2) services of the employee must be unique
(3) covenant must be reasonable (limited in geographical scope and duration). Cannot make it impossible for employee to earn a living.
Contracts not specifically enforced
(1) personal service contracts (against 13th Amendment)
(2) construction contracts
(3) employment contracts
Recission
Voids a contact and leaves parties as if no contract had ever been made. Grounds include:
(1) mutual mistake as to a material fact that goes to the essence of the contract
(2) misrepresentation, if material and relied upon
Defenses: Laches or unclean hands
Reformation
Changing the contract to conform to the true intent of the parties. If a gift, the donor but not donee can reform. Requires:
(1) a valid original agreement
(2) original agreement was in writing
(3) agreement fails to accurately express the intent of the parties.
Grounds:
(1) fraud
(2) mutual mistake of fact or law (but not unilateral mistake)
Equitable defenses
(1) unclean hands = party engaged in wrongdoing that related to the specific transaction and caused prejudice
(2) laches = party unreasonably delays in pursuing her claim and causes prejudice by the delay
(3) undue hardship (particularly in injunction cases or specific performance)
(4) estoppel = party acts improperly and other party relies on that action
Constructive trust requirements
Appropriate when title to real property is obtained by fraud, mistake, breach of fiduciary duty, undue influence, duress, misrepresentation, etc. Requires:
(1) ∆ has legal title to the real property
(2) ∆ will be unjustly enriched if title remains with him
(3) legal remedy is inadequate
Equitable lien
Gives πa lien on real property of the ∆’s. π will get priority over other creditors because equitable lien relates back to the point in which the ∆ unlawfully obtained π’s property. (Unlike a constructive trust, equitable liens don’t require transfer of title. πjust gets a security interest.)
Subrogation
When one party involuntarily discharges a debt or other obligation owed by the ∆, subrogation revives the discharged obligation by placing the π in the shoes of the original debtor.
Ways to enforce equitable remedies
(1) contempt of court (civil or criminal)
(2) Writ of assistance (when ∆ is ordered to deliver possession of real or personal property, this writ allows a sheriff or law enforcement to ensure the delivery occurs)
(3) Writ of sequestration (deprives ∆ of income, rents, etc. from real property until ∆ complies with the decree)