Maxims of Equity

Question 1

What are the maxims of equity?

Answer 1

General principles which developed from the Court of Chancery over the years

Question 2

Some equitable principles contradict each other, or may even overlap. True/false?

Answer 2

True

Question 3

What does Smyth say about maxims?

Answer 3

They serve as a framework within which the court could make decisions. However, it could be argued that the need for equitable maxims has become less useful over time.

Question 4

What is the first maxim of relevance to the Enoch Burke case?

Answer 4

He Who Seeks Equity Must Do Equity

Question 5

What maxim looks to the future conduct of the parties?

Answer 5

He Who Seeks Equity Must Do Equity

Question 6

What modern relevance does He Who Seeks Equity Must Do Equity have?

Answer 6

Granting of interim injunctions at the interlocutory stage

Question 7

What is a key feature of He Who Seeks Equity Must Do Equity?

Answer 7

Some form of action is required on the part of both parties

Question 8

What might happen if the court finds in favour of the applicant?

Answer 8

They may also require them to provide some form of remedy to the other party

Question 9

What might this action of the part of the other party be? [Action One]

Answer 9

An undertaking as to behaviour

Question 10

What happened in Chappell v Times Newspapers Ltd?

Answer 10

• Here, the plaintiff sought an interim injunction preventing the employer from terminating their contract of employment.
• However, the applicant would not agree to stop engaging in disruptive behaviour.
• The court disallowed the relief.

Question 11

What other action might the other party have to make? [Action two]

Answer 11

An undertaking as to damages

Question 12

What happened in Dolan v Reynolds?

Answer 12

The plaintiff was granted an injunction to remove her brother, the defendant, from the family property but the court required the defendant to compensate her brother for the works that were done to the property.

Question 13

What happened in the Burke case, in terms of an undertaking as to damages?

Answer 13

• Dignam J had to consider whether the defendant’s refusal to give an undertaking as to damages could be fatal to the relief sought.
• He stated that while an undertaking is almost always required, the failure to provide such is not fatal and was at the discretion of the court.
• Consequently, he declined to refuse the relief on this basis.
• However, the relief was refused on the basis of his behaviour.

Question 14

So, is He Who Seeks Equity Must do Equity relevant?

Answer 14

• It follows then that this maxim is particularly relevant in the modern legal system with regard to balancing the rights of parties.
• It continues to be considered in modern case law when granting interim relief in the form of injunctions.

Question 15

What does the maxim He Who Comes To Equity Must Come With Clean Hands require?

Answer 15

Requires that a person seeking relief must refrain from dishonest or disreputable conduct.

Question 16

He Who Comes to Equity Must Come With Clean Hands is concerneed with the present behaviour of the applicant. True/False?

Answer 16

False. It is concerned with the past behaviour of the applicant.

Question 17

What happened in Overton v Bannister?

Answer 17

• An infant misrepresented her age in order to derive the benefit of her trust early.
• She later attempted to sue her trustees for the trust the improperly paid to her.
• As she has acted with mal fides her claim failed.

Question 18

What happened in Argyll v Argyll?

Answer 18

The court would not allow adultery to be considered as not coming to equity with clean hands, even though the act was considered to be ‘repugnant’

Question 19

What was stated by Finlay CJ in Curust Financial Services Ltd?

Answer 19

There must be some element of depravity above that of a mere breach of contract

Question 20

What the Clean Hands maxim considered in Burke?

Answer 20

Yes, but the court used their discretion to not base their judgment on the past conduct of the defendant.

Question 21

Is Equality is Equity still used in modern legal systems?

Answer 21

Yes, in terms of property disputes.

Question 22

What does equity assume where there is no evidence of joint tenancy?

Answer 22

A tenancy in common arises. (Both parties hold the property in equal shares)

Question 23

What was made clear in EB v SS?

Answer 23

Equality is equity can have no application where a statutory provision indicates how an estate is to be divided.

Question 24

Is Equity follows the Law still relevant?

Answer 24

Yes.

Question 25

What does the principle of Equity follows the Law indicate?

Answer 25

The relationship between Equity and the Common Law?

Question 26

What emerged from McCormack v Grogan?

Answer 26

Equity will not allow a statute to be used as an instrument of fraud.

Question 27

Where else does Equity follows the Law arise?

Answer 27

In relation to a trust. While the interest of the beneficiary is recognised in equity, the legal rights remain with the trustee under Common Law

Question 28

What area of the law recognises a number of related equitable principles?

Answer 28

Contract law

Question 29

What is the maxim Equity looks on that as done which ought to have been done related to?

Answer 29

It treats a contract to do a thing as if the thing were already done in favour of the persons entitled to enforce it

Question 30

What happened in Walsh v Lonsdale?

Answer 30

A lease was treated as having been executed based on the existence of a contract for its execution.

Question 31

Why is the maxim ‘Equity imputes an Intention to fulfil an obligation’ a staple of contract law?

Answer 31

It forms the basis of the doctrines of satisfaction and performance

Question 32

What equitable maxim has fallen out of use in the modern legal system?

Answer 32

Delay defeats equity

Question 33

What statute has displaced the need for reliance on the maxim?

Answer 33

The Statute of Limitations Act 1957

Question 34

What does the Statute of Limitations Act 1957 do?

Answer 34

The Act places specific time limitations on specific legal matters

Question 35

So, how will the court view the maxim where an action is taken within these time limits?

Answer 35

The courts will not consider the maxim unless this delay could infringe fair procedures (O’Domhnaill v Merrick, Toal v Duignam)

Question 36

Will the doctrine continue to apply where an action has no statute bar?

Answer 36

Yes

Question 37

What was decided in JH v WJH?

Answer 37

Delay in itself is not sufficient. There must be circumstances which render it inequitable to enforce the claim after such a lapse in time.

Question 38

What was set out in Nelson v Rye?

Answer 38

• All of the circumstances of the situation should be considered, and it should be decided whether the balance of justice is in favour of granting or refusing the relief.
• Thus, it can be said that in some circumstances, the court still enjoys the discretion to enforce this maxim of equity.

Question 39

What do you conclude about the relevance of maxims today?

Answer 39

• While the maxims of equity are not positive rules of law which are always applied literally, through this discussion it has been shown that they are rules which reflect general trends which can be discerned from how the equitable jurisdiction is exercised by the courts.
• Even though some of the maxims are now mostly redundant in the modern legal system as they have been codified in statute, equitable principles are still `relevant and remain vital to the courts in order to balance the rights of the parties