EQUITY RULES! Flashcards
Equitable Relief General Rule
To obtain ER, (1) legal remedy is inadequate, and (2) equitable relief is feasible (person/object present in NC).
Temporary Injunctive Relief
Show (1) necessary to preserve status quo to prevent impending harm & (2) reasonable probability at winning.
Contempt
D must have disobeyed a detailed judicial command & must have had ability to obey it (no money). Civil contempt as part of underlying action to compensate or to compel compliance to prevent further harm.
Criminal contempt: (1) Direct: presence of judge can punish conduct summarily, no Constitutional protection (2) Indirect: actions outside court, but there must be testimony or other evidence to prove contempt occurred.
Civil contempt will fall if the underlying injunction should not have been granted; criminal will always stand.
Specific Performance
Must show (1) valid K exists, (2) all contractual conditions have been fulfilled & (3) mutuality of remedy exists. Time/essence is strictly construed unless tardiness is de-minimis, loss is slight, undue hardship to forfeiting party, or it has been waived. If no marketable title, no SP unless deficiencies are minor or B waived them.
Does Mutuality of Remedy Exist?
Mutuality exists where both parties would be allowed to enforce K & both have ability to perform this K.
Particular Application of Specific Performance to Land Contracts
In NC, seller has the risk of loss until possession is delivered under the Uniform Vendor & Purchaser Act.
Rescission
Equity will rescind K, if at execution, mutual mistake/deceit/duress/undue influence/lack of capacity.
Reformation
Must must be valid K, but incorrect b/c of mutual mistake, unilateral mistake coupled w/ fraud, or deceit.
Unclean Hands
Improper conduct w/ respect to same transaction. Must be serious; test is whether behavior is offensive to court.
Laches – Time Bar
Defense of Laches is available where P has delayed bringing suit if (1) delay is unreasonable based upon when P obtained knowledge of the wrong, and (2) the delay is prejudicial to the D (no records or witnesses are gone).
Hardship and Impossibility
Equity will not order relief that is not feasible. Thus, equity will not be ordered if one is not able of doing it.