Equity & Family Court (Delaware) Flashcards
Overview: Equity Cases - Multiplicity of Lawsuits
The Court of Chancery may have jurisdiction if the plaintiff would have to bring numerous actions at law to obtain relief.
Overview: Equity Cases - Unique Property (Real v. Personal)
Money damages may not be adequate when the property in dispute is unique. All personal property is unique, while only some personal property qualifies as unique.
Overview: Equity Cases - Speculative Damages
If the amount of money damages would be too speculative or otherwise difficult to calculate, a court may say that an equitable remedy is appropriate.
Overview: Areas Committed to the Chancery Court
1) Fiduciary rights and obligations (corporate law)
2) Trusts and Estates
3) Rights, appointments, and obligations of guardians
4) Covenants and restrictions
5) Charges of fraud or mistake
6) Enforcement of arbitration awards
Overview: Clean Up Doctrine
If the court has jurisdiction from equity, it can decide ALL ISSUES in the case, including monetary damages.
Equitable Defenses: Laches + Elements
Unreasonable delay by the plaintiff.
Elements:
1) KNOWLEDGE of the claim,
2) an UNREASONABLE DELAY in asserting the claim, and
3) PREJUDICE
Equitable Defenses: Laches - Relationship to Statute of Limitations
If there is an analogous action at law, the court will treat the statute of limitations as PRESUMPTIVELY BINDING
Equitable Defenses: Unclean Hands
If the plaintiff is guilty of inequitable conduct DIRECTLY RELATED TO THE LAWSUIT, the court may refuse to grant the plaintiff relief.
Equitable Defenses: Equitable Estoppel (Elements) + Waiver + Ratification
The party seeking relief acted INCONSISENTLY with the relief sought. The elements are as follows:
1) the Plaintiff has been SILENT, despite being able to speak and prevent the harm
2) Plaintiff KNEW silence would be detrimental to the other side, and
3) Plaintiff’s silence created an EXPECTATION or RELIANCE that caused PREJUDICE to the other side.
Waiver - Party waives right to equitable remedy
Ratification - Impermissible action has been ratified by a corporation
Injunctions (In Personam v. In Rem)
Injunctive relief is appropriate ONLY to prevent harm that is imminent, unspeculative, and genuine. Court of Chancery has EXCLUSIVE JURISDICTION over injunctions.
IN PERSONAM means the injunction is directed against specific parties, while IN REM means it is directed against or with reference to the subject matter in controversy and all whom it may concern
Injunctions: Substantive Classification Types + Standard Difference
Mandatory Injunctions and Prohibitory Injunctions
The standard for obtaining a MANDATORY injunction is SUBSTANTIALLY HIGHER than for a prohibitory injunction
Injunctions: Substantive Classification - Mandatory Injunctions
An order that COMPELS the defendant to PERFORM A CERTAIN ACT
Injunctions: Substantive Classification - Prohibitory Injunction
An order telling defendant NOT TO DO SOMETHING
Injunctions: Classifications Based on Timing - Temporary Restraining Order (TRO) + Elements + Security Bond
A TRO may be issued EX PARTE and LASTS 10 DAYS (less than federal 14 days). The elements are as follows:
1) A COLORABLE CLAIM (plausible)
2) IMMIDEIATE IRREPERABLE HARM, and
3) BALANCE OF HARDSHIPS (does harm prevented outweigh harm of granting TRO)
To obtain a TRO or PRELIMINARY INJUNCTION, you MUST POST A SECURITY BOND to indemnify costs of the other side if it turns out the injunction was wrongly granted
Injunctions: Classifications Based on Timing - Preliminary Injunction + Factors + Weight of Factors
This is meant to preserve the status quo until the court makes a final decision on the merits, ISSUED BEFORE A FULL TRIAL ON THE MERITS, BUT AFTER THE COURT HAS HEARD FROM BOTH SIDES
In considering a preliminary injunction, the court will look at the following factors:
1) LIKELIHOOD OF SUCCESS on the merits (higher than TRO, which is just colorable claim)
2) IRREPERABLE INJURY
3) BALANCE OF HARDSHIPS
A strong demonstration as to one element MAY OVERCOME a marginal demonstration of another
