Equity Today Flashcards
What created equitable maxims?
Equity
What is an equitable maxim?
A legal principle which assists judges in making decisions to ensure they are morally fair.
What are the equitable maxims?
He who seeks equity must come with clean hands
He who seeks equity must do equity
Delays defeats equity
What does the equitable maxim ‘he who seeks equity must come with clean hands’ mean?
That if the claimant has been in the wrong some way then they will not be granted an equitable remedy
What case illustrates ‘he he seeks equity must come with clean hands’?
D & C Builders v Rees
What happened in the case of D & C Builders v Rees?
A small building firm did some work on a house, the claimant paid £250 upfront. The bill came to £732, when the builders asked for the remaining sum Rees declared the work was defecting and gave them £300. The builders reluctantly accepted the money being in a poor financial situation. Later the builders sued Rees, who suck a promissory estoppel.
What did Lord Denning rule in the case of D & C Builders v Rees?
That a promissory estoppel would not be granted because Rees had taken unfair advantage of the builders financial difficulties therefore had not come with clean hands.
What did maitland say about common law and equity?
“The two streams have met and still run the sand channel, but their waters do not mix”
What does ‘he who seeks equity must do equity mean’?
Anyone who seeks equitable relief must be prepared to act fairly towards their opponent
What case is related to ‘he who seeks equity must do equity’?
Chappell v times newspaper ltd
What is Chappell v Times Newpapers relevant to?
He who seeks equity must do equity
What happened in the case of Chappell v times newspapers ltd?
Times employees had been threatened they would be dismissed if they did not stop strike action, so they sought an injunction.
What was the outcome of Chappell v times newspapers ltd?
The court held in order to be awarded the remedy the strikers should agree to withdraw strike action. They refused to do this so the injunction was refused.
What is delay defeats equity?
Where a claimant waits an unreasonably long time to bring an action, equitable remedies will not be available.
What is an ‘unreasonably long time’ for delay to defeat equity?
Each case is assessed individually, there is no set time.
What case is relevant to ‘delay defeats equity’?
Leaf v international galleries
What is the case of leaf v international galleries relevant to?
Delay defeats equity
What happened in the case of leaf v international galleries?
The claimant brought a painting or Salisbury Cathedral described (innocently) by the seller as a genuine Constable. 5 years later the buyer discovered we it was not genuine and sought the equitable remedy of rescission.
What was the outcome of the case of leaf v international galleries?
The court held the delay had been too long
What word best describes the application of equity?
Discretionary
Use the word discretionary to describe equitable maxims in a sentence…
These maxims mean that the application of equity is discretionary
What was created to supplement the system of damage?
Remedies
What has equity created to assist the system of damages?
Remedies
How are remedies applied?
They are discretionary and not automatically granted.
What is the only thing a claimant is entitled to?
Damages
What are the different remedies?
Specific performance
Rectification
Rescission
Injunctions
What is specific performance?
An order telling a party to perform part of a contract
When is the specific performance remedy useful?
Where damages is not adequate in the same of land
Unique items
What is an example of the specific performance remedy?
If the seller refused to sell after signing a contract the buyer could obtain a specific performance making the seller sell the house
What case is relevant to specific performance?
Wolverhampton corporation v emmons
What is the case of Wolverhampton v Emmons relevant to?
Specific performance
What happened in the case of Wolverhampton v emmons?
A builder was made to comply with his contrast to build houses on a demolition site
What is rectification?
This allows a written document to be changed if it does not represent the actual agreement?
What case is relevant to rectification?
Craddock v hunt?
What happened in the case of Craddock v Hunt?
The contract had to be rectified regarding the sale of an adjoining yard as neither party intended for it to be included in the sale
What is the case of Craddock v Hunt relevant to?
Rectification
What is a rescission?
This allows parties to return to their original position where the contract has been misinterpreted.
What case is relevant to rescission?
Grist v Bailey
What happened in the case of grist v Bailey?
The contract has to be set aside due to a smog ale regarding the rent acts
What is the case of Grist v Bailey related to?
Rescission
What is an injunction?
The order stops a person doing a particular act, like acting in breach of contract
What case is relevant to injunctions?
Warner brothers v Nelson
What is the case of Warner brothers v Nelson relevant to?
Injuctions
What happened in the case of Warner brothers v Nelson?
Bette Davis was prevented from making films for another company
What have courts used to help develop new remedies?
Equitable jurisdiction
What are the newest remedies?
Mareva injunctions
Anton Piller orders
Promissory estoppel
When were mareva injunctions first recognised?
1975
Who first recognised mareva injunctions?
The court of appeal
What is a mareva injunction?
A court order which freezes the assets of a party so they cannot move the assets out the country
What case is relevant to mareva injunctions?
Mareva v international bulk carriers
What happened in the case of mareva v international bulkcarriers?
A ship owner let the ‘mareva’ to a foreign charterer with payment half monthly in advance. The charterer defaulted on a payment. The shipowner found out the charterers had money in an English bank and sought an injunction to freeze the account
What did the courts rule in the case of mareva v international bulkcarriers?
That an order would be granted to stop the charterers from moving money abroad before the case was heard
What happened in the due process of law?
Lord denning described the mareva injunction as ‘the greatest piece of judicial reform in my time’
What did Lord denning describe the mareva injunction as?
The greatest piece of judicial law reform in my time
Where did Lord denning describe the mareva injunction as ‘the greatest piece of judicial law reform in my time’?
The due process of law (1980)
When were Anton Piller orders recognised?
1974
Who recognised Anton Piller orders?
The high court
What is an Anton Piller order?
This allows the plaintiff onto the defendants premises to inspect, copy or remove documents or other relevant objects before the defendant can destroy them.
If the defendant refused to plaintiff into the property even though they have an Anton Piller order what would this be? What’s the potential outcome?
This would be a contempt or court and they could be sent to prison for this.
What case is relevant to Anton Piller orders?
Anton Piller v manufacturing processes ltd
What happened in the case of Anton Piller v manufacturing processes ltd?
The plaintiffs made electrical equipment and employed the defendants as their uk agent. They suspected they were selling technical drawings to competitors so applied for an order
What was the outcome of Anton Piller v manufacturing processes ltd?
The court held that an ex parte (without notice) mandatory injunction would be granted, which later become known as an Anton Piller order
What is a promissory estoppel?
If a promise has been made to another person that promise cannot be withdrawn if that other person has relied on it to their detriment
What case is relevant to promissory estoppel?
Central London property trust v high trees house ltd
What happened in the case of central London property trust v high trees ltd?
A promise to let flats at a reduced rate during the war was upheld because the tenants relied on the promise before moving in.
