Equity Flashcards
Preliminary Injunction
To obtain a preliminary injunction, must clearly show: (1) likelihood of success on the merits (2) irreparable harm without it (3) its in the public interest (4) balance of equities tips in your favor.
Jury Trial of Equitable Claims
- No Constitutional right to a jury trial on any claims for equitable relief or claims based on a cause of action that was traditionally equitable.
Mixed Equity and Legal Claims
Jury Decides the legal claims. Judge Decides the equitable claims. The legal/jury claims must be decided first, so that the judge is bound by any fact finding the jury makes on issues.
Review of Decisions on Equitable Claims
A motion to suspend, modify, or vacate the judgment or decree - must be decided within 21 days after entry of the decree Bill of Review - must be filed within 6 months of the entry of an equitable final judgment or decree * Must be based on: (a) new evidence (b) error of law * If based on new evidence, must prove: (i) evidence could not be discovered with reasonable diligence (ii) not merely cumulative or collateral, and (iii) is material and would produce a different result at trial.
Mechanics of Appeal
Notice of Appeal filed in trial court within 30 days from date of decree. (Only domestic relations cases have an appeal as a matter of right) All other claims (whether equitable or legal) appeal is ONLY available to the Supreme Court and ONLY on a discretionary basis. * must file a petition to Supreme Court to grant leave to have an appeal. * S.Ct.will grant a writ which means the appeal has been permitted.
Eligibility for Equitable Remedies
Two General Requirements: (1) The legal remedy must be inadequate * When money damages would not make plaintiff whole, examples include: (a) Unique subject matter (b) Speculative damages (c) Insolvent Defendant (d) Irreparable Harm would occur (2) The equitable remedy must be feasible * To be feasible - must have jurisdiction over the person ordered to act, or property involved. * Also, equity will not be enforced if - enforcement requires extensive supervision or court would lack standards to measure compliance. (The fact that a court may grant or deny relief illustrates the idea that equitable relief is always discretionary.)
Injunctions
Must first be ELIGIBLE for equitable remedy (refer above) * Is the tort one for which injunctive relief is normally available? (1) Trespass to land (2) Conversion of unique Chattel (3) Stop Unfair competition * Is the tort one in which injunctive relief is sometimes available? (1) to eliminate a public nuisance (2) to prevent waste (damage to real property) * Is the tort one for which injunctive relief is not available? (1) defamation (2) commercial defamation (3) invasion of privacy (Court will balance the hardships between the parties - court discretion)
Temporary Injunctive Relief
Injunctive relief necessary to preserve the status quo for the time period needed to determine the issues in litigation.
Temporary (Preliminary) Injunction
Designed to maintain the status quo until the court can determine the controversy presented in litigation. Must Show: (1) Substantial likelihood of winning (2) Irreparable Harm Unless status quo is maintained (3) harm to the moving party outweighs the hardship of injunction on restrained party, and (4) no adverse effect on public interest. Mechanics: * Usually - preliminary injunction is given after a hearing * BUT - may be granted without a hearing if you show such an immediacy of injury as to justify proceeding without a hearing.
Specific Performance of a Contract
Equitable remedy which a party to a K is ordered to perform according to its terms. 3 Key Requirements: (1) A valid K exists - off/acceptance; consideration; reasonably definite terms. (2) All K conditions have been met, and *look out for time is of the essence provisions and marketable title. (3) Mutuality of remedy exists - both parties able to perform and both can be bound by K.
Relief for Unlawful Competition
…
Covenant Not to Compete
If there is a covenant not to compete equity will grant specific performance if the restrictions are reasonable: 1) employer’s legitimate interest in protection its business 2) Employee’s fair opportunity to accept other jobs in the industry 3) The public interest i.e. will it interfere with health and safety. Elements of an Enforceable Noncompete: 1) Specific Job Duties Prohibited 2) Geographic Scope is reasonable, and 2) Duration is reasonable (1 or 2 years okay; 5 years not okay)
Recision or Reformation
Recision - remedy by which a voidable contract is put to an end and the parties are treated as though it had never been made. Reformation - treats the contract as valid, and changes a writing setting forth or implementing the agreement to conform to the originally intended agreement.
Obtaining Recision
Equity will cancel a contract if at the time it was entered there was: (1) Mutual Mistake as to a material fact, or (2) Unilateral Mistake coupled with * Any form of misrepresentation or inequitable conduct. (3) Also Duress, Undue Influence, lack of capacity or failure of consideration. If an agreement is rescinded - party obtains restitution relief
Obtaining Reformation
A valid contract will be reformed: (if shown by clear and convincing evidence) 1) For any mutual mistake; or 2) Unilateral Mistake coupled with knowing misrepresentation
Restitution
Remedy for unjust enrichment Claim for restitution exists if plaintiff shows that the defendant: (1) obtained a BENEFIT from the plaintiff, and (2) defendant should have known that plaintiff expected compensation
Restitution not available against Commonwealth
The Commonwealth can be sued for breach of contract and torts under the Tort Claims Act, BUT is immune from suit for equitable causes of action. Counties and Cities and Towns are NOT immune however.
Equitable Defenses
An equitable defense prevents a plaintiff from obtaining an equitable remedy otherwise available. Unclean hands - available if the plaintiff is guilty of improper conduct proximately related to the same transaction for which the plaintiff seeks equitable relief. Time-bar (Laches) - Available where plaintiff has delayed bringing suit if: (a) plaintiff waits unreasonable amount of time before suing (b) Delay was prejudicial to defendant. Unconscionability - Any arrangement which is fundamentally unfair may unconscionable (consideration for a K is grossly out of proportion to the true value of the deal) Fraud - where plaintiff has tricked their contract partner into a deal - using conduct that approaches fraud (defense to a specific performance action) * General Showing for Fraud - knowing misrepresentation about present facts, seeking reliance by the other party.
“Default Divorce” in VA
By statute, No divorce or annulment case can be resolved by default - an evidentiary submission must be made by plaintiff so proper grounds of divorce are presented to judge
Procedural Niceties and Waiver of Notice Rights in Divorce and Annulment Suits
2012 Statutory change abolished rule requiring notice of all proceedings, and Defendant who fails to make a timely appearance is treated like a D in any other civil case
Jury Trial of Equitable Claims
No Constitutional right to a jury trial on any claims for equitable relief or claims based on a cause of action that was traditionally equitable
Jury Trial of “Mixed” Cases
Legal/jury claims need to be decided first, so that the judge is bound by any fact finding the jury makes on the issued to which the jury right applies
Statutory Rights to Jury hearings in equity
1) Quiet title, and 2) Where a defendant files a plea to an equitable claim
Definition of a Defendant’s Plea to an Equitable Claim
A defensive pleading which sets forth a single dispositive state of fact which, if proven, would provide defendant a complete exoneration on plaintiff’s claim
Advisory Juries in Equity
Trial judge has discretion to seat a jury re: a hotly disputed factual issue, but their verdict is not binding (Judge must make independent decision)
Three means to review final decree in equitable action
1) A motion to suspend, modify or vacate the judgment or decree; 2) A bill of review; or 3) Appeal
Motion to suspend, modify or vacate judgment or decree
1) Must be decided within 21 days after the entry of decree, and 2) May be based upon new evidence or any error of law or fact
Bill of Review
Must be Filed within 6 months of the entry of decree and based upon: 1) Newly discovered (critical) evidence, or 2) An error of law when it appears on the face of the record
Mechanics of Appeal of final decree
In all cases, notice of appeal is filed in the trial court and must be lodged within 30 days from the date of decree
Domestic Relations Appeal
Appeal as matter of right to Court of Appeals
Appeal of all non-domestic relations Equity matters
Appeal only available to the Supreme Court AND ONLY on a discretionary basis
Two general requirements for Equitable Remedy Eligibility
1) The legal remedy must be inadequate, and 2) Equitable relief must be feasible
What does it mean that Legal Remedies are Inadequate?
Money damages must be unable to make a plaintiff whole
What does it mean for an equitable remedy to be feasible?
1) There must be present in the forum state either: (a) The person who would be ordered to act, or (b) The property subject to suit; and 2) Court must have capacity to determine or supervise compliance: (a) Enforcement should not require extensive supervision, or (b) Lack standards to measure compliance
Injunctions are Normally Available for Torts of :
1) Continuous or repeated trespass to land, 2) Conversion of a unique chattel, or 3) To stop unfair competition
Injunctions are NOT Available for Torts of :
1) Defamation, 2) Commercial defamation (trade libel), or 3) Invasion of privacy, unless it involves unauthorized use of a person’s name or picture
Obtaining Temporary (Preliminary) Injunctive Relief
Show: 1) Substantial likelihood the moving party will win the lawsuit; 2) Irreparable harm to the movant unless the status quo is maintained; 3) Harm to the moving party outweighs the hardship the injunction will cause; and 4) The public interest will not be adversely affected by an injunction
To obtain specific performance you must show:
1) A valid contract exists - including offer and acceptance, 2) All contract conditions have been met, and 3) Mutuality of remedy exists
Failure to Comply with Time of Essence provision may prevent specific performance unless Court ignores strict enforcement because:
1) The delay was very slight (a few hours or days at most); 2) The other party suffered no injury on account of the delay; 3) Invalidating the contract would work extreme hardship on the late party, or 4) Requirement has been waived
Definition of Mutuality of Remedy
One party to a contract is not entitled to specific performance unless the other parties would also be entitled to have the contract specifically enforced
Two elements of Trade Secret
Information is: 1) Confidential and not otherwise available, and 2) Gives the owner a competitive advantage
Equity will enforce Non-compete covenant if -
Restrictions are reasonable as to: 1) Employer’s legitimate interests in protecting its business, 2) Employee’s fair opportunity to accept other jobs in the industry, and 3) Any relevant public policy interest
Remedy of Rescission (“cancellation”)
Remedy by which a voidable contract is put to an end and the parties are treated as though it had never been made
Remedy of Reformation
Remedy that treats contract as valid, and changes a writing setting forth or implementing the agreement to conform to the originally intended agreement
Equity will cancel/rescind a contract if, at the time it was entered into, there was:
1) Mutual mistake re: a material fact, or 2) Unilateral mistake + misrepresentation or inequitable conduct, or 3) other grounds (such as duress, undue influence, lack of capacity…)
Rescission and Restitution
If an agreement is rescinded, restitution is generally available to recover any value exchanged prior to rescission (unjust enrichment)
Writings will be reformed if there was:
1) Mutual mistake, or 2) Unilateral mistake coupled with knowing misrepresentation, and 3) A valid contract
Definition of Restitution
Equitable claim to recover unjust enrichment (analogous to quasi-contract)
Equitable Claims against Commonwealth
The Commonwealth is immune from suit for equitable causes of action, but localities, including Counties, are not
Equitable liens on realty in VA
Requires the existence of a writing indicating the intention to subject the property to a lien + unjust enrichment as to that property
Equitable Accounting
Court may order a study of the finances of a person or organization to determine the amount of any award appropriate under the facts of any case
