Equity(R) Flashcards

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1
Q

Customs?

A

After the Norman Conquest in 1066 William the Conqueror appointed judges to travel round the country making decisions in the king’ same many of which were based on common customs.

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2
Q

Defition of Equity?

A

Equity means fairness, many of our legal concepts have developed from equitable principles. There are many sources of law in the UK but Common Law and Equity are two of them. Common Law has developed over many centuries and has it’s principles derived from customs.

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3
Q

1) The custom must have existed since time immemorial.

A

Under the Statute of Westminster 1275, time immemorial dates back to 1189 and courts still use this date today. Since it is difficult to date a custom back this far in reality courts allow the oldest inhabitant of he locality to testify that it has happened for as long they remember. E.g. In 1980s in South Wales a local inhabitant aged 112 testified that he had used a pathway since he was a boy some 100 years earlier. In Simpsons v Wells 1872 when it was proved that a right to set up a refreshment stall on a public footpath had been given by a statute in the fourteenth century, hence had not been established since time in memorial dating back to 1189, so it had to proved that the custom had needed to exist at all times since it’s introduction or the courts reject the principle.

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4
Q

2) The custom must have been exercised peaceably, openly and as of right.

A

The custom must have been carried out without using force. It must have been carried out without using force. It must have been done openly, not in secret and no one must have given permission for it to have been done. Mills v Colchester Corporation 1867 fishing had only taken place because licence was granted each year. This meant that permission had been granted so the local custom could not be relied on.

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5
Q

3) The custom must be definite as to locality, nature and scope.

A

This prevents the courts needing to recognise anything which is too uncertain. Wilson v Willes 1806 The tenants of a manor claimed that they were entitled to take as much turf as they require from the common land on the manor. The phrase “as much as they required” was too uncertain and therefore could not be relied on as a custom.

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6
Q

4) The custom must be reasonable.

A

Even if the first three tests are passed the courts can refuse to recognise the custom if it is unreasonable. Wolstanton Ltd and Duchy of Lancaster v Newcastle under Lyne Borough Council 1940. Damage was being caused by mine works, the owners of the mine claimed that they had a right to mine without being liable to compensate for subsidence damaging their houses. The House of Lords held that this would be unreasonable and so did not uphold the custom.

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7
Q

New customs today.

A

It is very rare for new customs to be considered today, but where necessary the courts will recognise a new custom. In Egerton v Harding 1974 where the courts ruled that it was customary to duty to fence land to prevent cattle straying from the common. Again in New Windsor Corporation v Mellor 1974 where a local authority was prevented from building on land because the local community could prove that they had the right to use the land for lawful sports.

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8
Q

The development of Common Law.

A

Clearly the legal system could not rely totally on customs. After the Norman Conquest in 1066 William the Conqueror began to set up a more organised system of justice allow the country to become easier to manage. Judges were sent around the areas establishing the Curia Regis (the King’s Court) and disputes between nobles were encouraged to apply to these courts to settle matters. This practice became more regular under the reign of Henry II (1154-1189) when the country was divided into circuits or areas for judges to visit. (A system as still use today). On their return to Westminster judges discussed best practice and so a unified system of justice began to emerge, developing a common law for the country. For example, murder is a common law crime but prosecuted under the Homicide Act 1957, but theft is a crime defined by law under the Theft Act 1968.

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9
Q

Historical development of Equity.

A

One of the main problems with equity was the method by which cases had to be started. A writ had to be obtained and the offence had to fit the exact wording of the writ or the case would not proceed. This was difficult as many people could not read or write and writs were a complex document often resulting in sections being I accurately written for the offence resulting in the case not proceeding. This was further complicated by the Provision of Oxford in 1258 when there was a restriction on new writs being written. Prior to this a writ could be written for any offence. Post the Provision of Oxford an offence had to fit an existing writ and fictions began to be developed, so. Trespass to land needed to be interpreted as a violent trespass to fit in with an existing writ.
Another problem was that the only remedy was damages (a financial compensation). This was not appropriate in the cSe of trespass where a neighbour had built on another neighbour’s land. The building would still exist, compensation may be paid, but the use of the land was lost which was the sole purpose for brining forward the case.

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10
Q

Other defects in the Common Law.

A

There were also other faults with the Common Law Courts, for example:

  • The Common Law Courts used juries which could be intimidated and corrupted.
  • The Common Law had only one remedy, damages, which was often inadequate.
  • The Common Law paid too much attention to formalities, e.g. If a contract was made which required written evidence for its enforcement, then lack of such evidence meant that the common law courts would grant no remedy.
  • The a Common Law Courts did not recognise the trust.
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11
Q

The King and The Chancellor’s approach to Equity and Common Law.

A

The King was regarded as the”fountain of justice” and had the prerogative to make any order he considered to be correct. So if justice through the Common Law failed they could appeal directly to the king. Most cases were referred to the chancellor who was both a lawyer and a priest and was known as the keeper of the King’s conscience. The Chancellor was known to base his decisions on the principle of natural justice and fairness, following what was right rather than previous precedents. Defendants who refused to obey could be sent to prison to “examine their own conscience”. To ensure fairness prevailed a new set of equitable remedies were introduced, there included injunctions, specific performance, rescission and rectification. These principles are still used today. Eventually a Court of Chancery came into being under the control of the chancellor. Equity was not a complete system of law it merely filled in the gaps in the Common Law.

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12
Q

Common Law and Eauity.

A

Common Law and Equity operated separately, so there was overlap in the system and often conflict in the decisions that were made. The conflict was finally resolved with the Earl of Oxford case 1615, when the King ruled that where there was conflict equity prevail. This was further strengthened when this principle was included in S5 of the Judicature Acts 1873.

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13
Q

Chancellors and Equity.

A

Equity was initially very uncertain as successive Chancellors operated their own idea of fairness. This caused John Seldon to remark that “equity varied by the length of the Chancellor’s foot” so did Lord Justice Coke. However during the seventeenth and eighteenth centuries the Chancery Courts became more rigid and began to follow their own past decisions making the system fairer. The system became very slow with some cases lasting years. Another problem was that litigants wanted both Common Law and Equitable remedies, hence needing to take action in two separate courts. This problem was partially solved by Chancery Amendment Act 1950 and the Common Law Procedures Act 1952-60 which gave the courts the power to issue both Common Law and Equitable remedies. In 1873 and in 1875 the court structure was reformed with the Common Law courts and the Courts of Chancery merging into one system, S25 of the Judicature Act 1873 stated “where there is any conflict or variance between the rules of equity and the common law… The rule of equity shall prevail.” The key point was that all courts could now use equitable rules where suitable.

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14
Q

The operation of Equity.

A

Many of the rules on which equity is based are expressed in a series of series of sayings. There are five most important sayings.

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15
Q

1) Equity looks to the intention and not the form.

A

Berry v Berry 1929. Where a deed was held to have been altered by a simple contract. Under common rule a deed could only be altered by another deed. But equity decided that where the parties had intended to alter the deed it would be fair to take in to account that intention rather than the fact that they got the formalities wrong.

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16
Q

2) He comes to equity must come with clean hands.

A

An equitable principle will not be granted to a claimant who has not acted fairly. D&C Builders Ltd v Rees 1965. A small building firm had done work for Mr & Mrs Rees. The bill was £732, £250 had been paid in advance. When the builders asked for the remaining £482 the Rees who new the builders were in financial difficulty and needed the money urgently, claimed that the work had not been done to standard and were only prepared to pay £300. Reluctantly the builders agreed and then used the Rees for the remaining £182. Under Common Law part payment of a debt is not considered as satisfying the debt and the builders could claim the extra. Under equity a doctrine of equitable estoppels exists and the courts can declare that the claimant is prevented (stopped) from asking for the rest. Lord Denning in the Court of Appeal refused to apply equitable estoppels because the Rees had taken an unfair advantage of the knowledge of the builders’ financial difficulties. So, as far as equity was concerned the Rees had not come to court with “clean hands”.

17
Q

3) Delay defeats equity.

A

The defendant cannot wait to long before making a claim as this might lead to unfairness to the other party. Leaf v International Galleries 1950. A person was sold a painting which both parties believed was a Constable. The court did not award the equitable remedy of rescission because there had been a five year delay between the contract and the discovery that the painting was not a constable.

18
Q

4) he who seeks equity must do equity.

A

In order for a claimant to have an equitable remedy he must be prepared to satisfy his side of the bargain. Chappel v Times Newspapers 1975. Employees on strike wanted am injunction against employers who threatened them with dismissal unless they stopped the strike. The court held that for the remedy to apply the employees had to satisfy their part of the agreement and stop the strike.

19
Q

5) Equity will not suffer a wrong to be without a remedy.

A

This allows for new remedies to be created where there is not adequate remedy for the case. This allows the principles of equity to still develop. This is demonstrated by Anton Pillar orders and Mareva injunctions.

20
Q

Equitable remedies.

A

One of the most important aspects of equity is that it created new remedies to supplement the Common Law remedy of damages. These remedies are discretionary and a court does not have to grant them even of the claimant wins the case. An equitable remedy will only be granted if the courts think it is fair. If a party ignores the remedy they can fined or even sent to prison. There are four main important remedies.

21
Q

1) Injunctions.

A

This is an order to one of the people involved in a case to do something (a mandatory injunction) or to stop doing something (a prohibitory injunction). Kennaway v Thompson 1980. A court granted an injunction restricting the times power boats could be raced on a lake. Warner Brothers v Nelson 1937. A court ordered an injunction ordering the actress Bette Davis not to make a film with another company because she was under contract with Warner Brothers. A claimant can be awarded both damages and an injunction. As in Kennaway v Thompson 1980, the injunction was ordered to prevent further problems and compensation for the inconvenience of caused by the past problems of noise.

22
Q

Kennaway v Thompson 1980.

A

A court granted an injunction restricting the times power boats could be raced on a lake. The injunction was ordered to prevent further problems and compensation for the inconvenience of caused by the past problems of noise.

23
Q

Warner Brothers v Nelson 1937.

A

A court ordered an injunction ordering the actress Bette Davis not to make a film with another company because she was under contract with Warner Brothers.

24
Q

Example case of a Mandatory Injunction.

A

Mortimer v Bailey 2004. A building that has been erected in contravention of a legal restriction was ordered to be pulled down.

25
Q

Example case of a Prohibitory Injunction.

A

Venables and Thomson v Newspapers 2001. The killers of Jamie Bulger were granted injunctions that prevented the media from identifying them or their whereabouts following their release from prison.

26
Q

Interlocutors injunction.

A

An interlocutors injunction can be ordered by the courts, this is where it so believed that one party’s rights need to be protected while waiting for the case to be heard. It will only be used if it is believed that one party is likely to suffer irreparable harm while waiting for the case to be heard.

27
Q

2) Specific Performance.

A

An order that a contract must be carried out. It is only granted in exceptional circumstances which are not covered by the common law remedy of damages. It is never used to force someone to carry out personal services e.g. Perform in a concert or for breach of contract where one party is a minor. Sky Petroleum v VIP Petroleum 1974 where petrol was deemed to be a unique item because it was in short supply. Wolverhampton Corporation v Emmons 1902. Where a builder was made to comply with a contract to build houses on a demolition site. Cohen v Roche 1927. The court refused to grant an order of specific performance as it considered the items in question (a set of Hepplewhite chairs) were ordinary articles of commerce and of no special value or interest.

28
Q

3) Recission.

A

Another remedy in contract cases and allows the parties to return to their pre contractual position. Grist v Bailey 1967 where a contract was set aside because both parties had made a mistake that a property for sale was covered by the Rent Acts.

29
Q

4) Rectification.

A

Where a mistake has accidentally been made in a document so that it is not a true version of what the parties agreed, the document can be altered to reflect the parties’ intention. Carddock v Hunt 1923 where a contract for a house included an adjoining hard though neither party intended for it to be included.

30
Q

The relevance of Equity today.

A

Equitable rights, remedies and interests are still important today and cover issues such as mortgages and trusts. However new concepts can still be created. This was demonstrated in the promissory estoppels case suggested by Lord Denning in Central London Property Ltd v High Trees House Ltd 1947 (often referred to as the High Trees case). A block of flats in South London had been leased for 99 years. The company had sub let individual flats to residents. During the Second World War many people moved away and it was difficult to let the flats. After the war the landlord claimed the full rent again. At the High Court Judge Denning decided that they were entitled to the full rent but hypothesised on what the legal position would’ve been had the landlord tied to claim the full rent for the period of the war. Judge Denning claimed that the landlords would have been stopped from claiming. Since this case the law has recognised that in some situations it would be inequitable to allow one party to rely once strict terms of the contract.
Another recent equitable concept is “deserted wife’s equity”. Here where a husband has deserted his wife and child the wife had an equitable interest in the marital home even if it was not jointly owned. This right was enacted in the Matrimonial Homes Act 1967.

31
Q

Modern use of Equitable Remedies.

A

Equitable remedies are still important today and are reinforced by S37 Supreme Courts Act 1981. Here the High Court may grant an injunction which appears “just and convenient to do so.” Two examples have already been shown in Kennaway v Thompson 1980 and in Warner Brothers v Nelson 1937. Other injunctions prohibit violent partners from entering premises. Other injunctions are used to prevent excessive noise, nuisance and trespass. In employment law it prevents an employee from disclosing trade secrets or preventing a trade union from using unlawful action.

32
Q

August 1987 the Royal Family.

A

In August 1987 the Royal Family used an interlocutory injunction to prevent freelance photographers from harassing Princess Diana. This prevented photographers from approaching within 300 metres of her. Again a prohibitory injunction was issued to Closure Magazine in 2012 preventing the further publication of topless photographers of the Duchess of Cambridge.

33
Q

Douglas v Hello Magazine 2001.

A

In 2001 Douglas v Hello Magazine took out a prohibitory injunction against Hello Magazine to prevent the publication of the wedding photos of Michael Douglas to Catherine Zeta Jones, OK magazine had exclusive rights.

34
Q

Mareva Compania Naviera SA v International Bulkcarriers SA 1975.

A

Other new injunctions include Mareva Compania Maviera SA v International Bulkcarriers SA 1975. This was freezing injunction preventing one party from removing assets out of the UK. It also allows banks to freeze the finances of a third party.

35
Q

Anton Pillar KG v Manufacturing Processes Ltd 1976.

A

This injunction allows the claimant to search the defendant’s premises for documents and remove them to prevent destruction.

36
Q

Super Injunction.

A

Known as “super” because they do not just prevent reporting of the details of the matter being protected but also hides the fact that this particular person even sought an injunction. 2011 Ryan Giggs and Andrew Marr. This prevented information being published about their personal lives and for the rest of the year was referred to as “a married premier league footballer.”

37
Q

Law of trusts.

A

Within the law of trusts it now allows the rights of a person who is not the legal owner of a property to be recognised and protected. It also developed the rules and rights involved with mortgages.

38
Q

Equity today.

A

Consequently equity is as important today as when it was first developed, and time has permitted equitable remedies to develop with the passage of time allowing it to be fit for use within the twenty first century and allowing for future remedies to continue to develop to meet the needs of society.