Equity Flashcards
What are injunctions
Injunctions are remedies to stop a current harm or prevent a future harm. There are a variety of different types of injunctions.
Permanent Injunctions
To obtain a permanent injunction, a party must demonstrate (1) a current or imminent loss of a right, (2) the inadequacy of legal remedies, (3) that the balance of hardships between the parties favors the injunction, and (4) the public interest is not harmed.
Temporary Injunctions
There are two types of temporary injunctions: temporary restraining orders and preliminary injunctions. Both remedies are available according the same standard (discussed below), but differ in their duration and notice requirements.
Additionally
A TRO is only effective for a period of time defined by the judge, usually a matter of days or weeks. In contrast, a PI presumptively remains in effect until the conclusion of the suit. Plaintiffs who obtain a TRO will often follow up with a request for a PI. A TRO can be obtained ex parte, but only if the party seeking the TRO has attempted to provide notice or if the party seeking the TRO reasonably believes that notice will frustrate the benefits of the TRO.
Temporary Injunctions
(1) likelihood of success on the merits; (2) irreparable harm, i.e., inadequacy of legal relief, (3) balance of hardships, (4) balancing of public interest; (5) payment of bond. Note also that TROs are immediately appealable.
Specific Performance
Available when damages would be inadequate to the caused harm. Courts have granted this in cases where: (1) unique or scarce supply; (2) K is for interest in real property; (3) K is for closely held stock when (a) no readily ascertainable market price and (b) stock is voting control of corporation; and (4) K is for covenant not to compete.
Unavailable when?
(1) performance is impossible; (2) K is for employment; (3) K is for construction.
Unjust Enrichment
The common law doctrine of unjust enrichment prohibits D from unjustly profiting from some act by P. For P to recover for unjust enrichment, P must show that she (1) conferred a benefit on D and (2) that it would be unjust to allow D to retain the benefit.
Disgorgement
Disgorgement is a common remedy for the torts of conversion or fraud, but can be applied in any case where D has profited from his wrongful behavior. Note that courts rarely hold that breach of contract is wrongful for the purposes of disgorgement. D GETS A LOT OF CASH
Constructive Trusts
Sometimes a defendant’s wrongful act leads to his ownership of real or personal property. Disgorgement, which deals with money, is thus an inappropriate remedy. In these cases, a court may create a “constructive trust” and place the newly acquired property in the trust. The plaintiff can then sell the contents of the trust for cash, or take any other action it deems appropriate. TITLE TO PROPERTY
Equitable liens
Sometimes a defendant’s wrongful act does not lead to the accrual of cash or new title in property. In these cases, the appropriate remedy is an equitable lien, which will provide the plaintiff with a security interest in a piece of D’s property. This security interest will allow the plaintiff to force the sale of the property if D fails to pay the amount owed to P. IMPROVEMENT IN PROPERTY
Laches
Laches is a defense to the imposition of an equitable remedy. It is available when the party seeking the remedy has “slept” on her rights, meaning, neglected to enforce her rights in a timely manner, or in a manner that does not unduly prejudice the defendant. LAZY
Equitable Estoppel
Equitable estoppel can be used to defend against both legal and equitable claims. It applies where a defendant reasonably relies on a misrepresentation by a plaintiff. Note that if a plaintiff reasonably relied on a defendant’s misrepresentation, a claim of fraud (or perhaps negligent misrepresentation) might arise. Where the defendant relies on the plaintiff’s representation, however, a defense becomes available to a defendant.
