Equity Flashcards
What are the different types of equitable relief available and what areas of the law do they apply to?
Torts:
- injunctions
Contracts:
- specific performance
- rescission
- reformation
- constructive trust
- subrogation
Property:
- specific performance
- equitable liens
- equitable mortgages
What must a plaintiff show to obtain injunctive relief against tortious conduct being or about to be committed?
i. Inadequate remedy at law
ii. Feasibility, practicality, and effectiveness of the injunctive relief sought
iii. Hardship to D doesn’t greatly outweigh benefit to P of relief sought (ignored if D is willful)
iv. No defenses
When would replevin be an inadequate remedy at law for which an injunction may be appropriate?
- D could put up a replevin bond for a unique chattel or
- there’s been a change in the chattel such that a sheriff couldn’t recognize it.
When would money damages be an inadequate remedy at law for which an injunction may be appropriate?
Damages are speculative
Damages nominal or unavailable
D is insolvent
Injury is irreparable
Multiplicity of actions may be necessary
What is the enforcement mechanism for violation of an injunction?
Contempt: therefore PJ needed.
What types of injunctions are available?
Mandatory: ordering something to be done
Negative: ordering something not be done
Interlocutory: temporary
Permanent
For which torts should I consider whether an injunction is appropriate?
Nuisance: must be a private nuisance or P may lack standing
Trespass to land: proper when trespass is continuous
Unfair competition: Misappropriation of trade secrets
When will an injunction be considered feasible and practical?
Negative injunction preferred: more feasible to stop an activity rather than to mandate an activity
Location of D: if out of state, more difficult to have jurisdiction.
Complexity: if requires court to force someone to exercise individual skill and judgment
Repeated acts: practical if doesn’t involve requiring repeated acts over a period of time because court doesn’t want to supervise.
What defenses exist to injunctive equitable relief?
i. P has unclean hands
ii. Latches—
- P has unreasonably delayed action such that
- D’s ability to defend himself has become impaired
iii. Impairs free speech
iv. Impossibility
What is the burden of proof for both types of interlocutory injunctions?
Preserve the status quo because likely to prevail on the merits but will suffer irreparable injury before the trial can be held
What is the difference between two types of interlocutory orders?
Preliminary injunction:
- Purpose: to preserve status quo
- Duration: lasts until completion of judicial proceeding;
- Requirements to issue: notice to opposing party and adversarial hearing required
Temporary restraining order:
- Purpose: to preserve status quo
- Duration: 10 days (14 in Federal);
- Requirements to issue: some notice, if practicable
What is the difference between a preliminary and permanent injunction?
Preliminary injunction:
- Purpose: to preserve status quo
- Duration: lasts until completion of judicial proceeding;
- Requirements to issue: notice to opposing party and adversarial hearing
Permanent injunction:
- Purpose: to grant the relief sought
- Duration: as long as necessary
- Requirements to issue: notice to opposing party and adversarial hearing
When will a court grant specific enforcement under a “time is of the essence” clause?
Clause is explicit in K and K is wholly executory (unperformed on both sides).
If partially executed, court will try to avoid forfeiture.
What must a plaintiff show to be granted specific performance?
- Valid K
- P has performed or is ready to do so
- Inadequate legal remedy
- Feasibility of enforcement
- No defenses available
What are three different types of cases where a legal remedy is considered inadequate in a plea for specific performance?
- Concerns land (always unique—even identical neighboring lots)
- Rare, unique, or sentimental value item
- Preventing the person from violating a covenant not to compete
When is specific performance of a land contract feasible?
Depends on whether court has jurisdiction over the parties and the res:
- Parties and res: feasible
- Seller and res: only if buyer bringing action
- Buyer and res: feasible
- Parties, no res: trend that feasible and hold seller in contempt if doesn’t convey
What defenses exist to specific performance equitable relief?
i. Same as injunctions
ii. All K defenses (e.g., SoF, unless part performance)
iii. Unconscionability at time of K formation
When can deficiencies in the quantity or quality of land promised be the subject of a specific performance?
Buyer can compel performance for major and minor defects; seller can only compel if it’s a minor defect.
When is a contract rescission appropriate?
Court will set aside the K if when, before or at the time of contracting, there’s been
- a material mistake
- mutual
- unilateral: only if nonmistaken party knew or should have known of the mistake and (some) relied on contract or suffered great hardship
- material misrepresentation
- other contract defense
What is the difference between the purpose for rescission and reformation?
Rescission: to cancel the contract for lack of true consent
Reformation: to conform a writing to the oral agreement of the parties
Is unilateral mistake a ground for contract rescission?
Generally not unless the non-mistaken party either knew or should have known of the mistake (and in RI where the non-mistaken party hasn’t relied upon the mistake).
What grounds are available for the court to grant reformation?
Mistake or material misrepresentation
Which Rhode Island court has jurisdiction over equitable remedies?
Superior court except as provided by the law has exclusive original jurisdiction
When will a covenant not to compete be specifically enforced?
Although an employment contract won’t be specifically enforced both because of the prohibition against slavery and because it fails to be feasible and practical, unless it would harm the public, a non-compete will be if:
- services are unique;
- covenant is reaonably necessary to protect the employer’s interests; and
- covenant is reasonable in geographic and temporal scope.
