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Equity
Bar Review
47
Law
Graduate
07/06/2013

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Cards

Term
legal remedy:
Definition
money damages.
Term
equitable relief:
Definition
when money will not make the plaintiff whole, equitable remedies are available.
Telling someone to do something or stop doing something
Term
crucial threshold showing to entitle one to equitable relief:
Definition
there is no adequate remedy at law.
Term
inadequate remedy at law:
Definition
money damages are insufficient to fully compensate.
damages are uncertain or highly speculative
subject matter is unique
defendant is insolvent
compensation for the harm would require filing successive lawsuits.
where D's conduct is willful or ongoing.
Term
4 features of equitable relief
Definition
personal
enforceable
discretionary
coercive
Term
Injunction
Definition
court order that either commands or prohibits some action.

can be sought as primary form of relief, or in addition to money damages.
Term
mandatory injunction:
Definition
commands affirmative act by defendant
Term
prohibitory injunction
Definition
commands defendant to abstain from acting.
Term
distinction between temporary and permanent injunctions:
Definition
Temp: available prior to resolution of controversy on the merits.

Perm: order of court following complete hearing on the merits.
Term
Temporary injunctions:
Definition
Preliminary injunction
TRO
Term
Preliminary Injunction:
Definition
Court order intended to preserve status quo, until resolution on the merits.

considered extraordinary remedy: will only be entered if serious harm would result.
Term
4 elements of prelim injunction
Definition
1. party must show they possess a clearly ascertainable right.
2. irreparable harm
3. That there is no adequate remedy at law.
4. likelihood of success on the merits.
Term
Balance of hardships:
Definition
benefit ot plaintiff must greatly outweigh harm to defendant in granting preliminary injunction.
Term
Seeking preliminary injunction:
Definition
Defendant is entitled to a hearing.
Trial court has great discretion in granting preliminary injunction.
Term
TRO:
Definition
Emergency remedy, granted to preserve status quo while court considers whether to grant preliminary injunction.
Term
2 differences between TRO and prelim inj:
Definition
TRO can be entered without having a hearing, and without notice to the Defendant. (ex parte TROs last 10 days).
elements are the same as preliminary injunction.
Term
appellate review of TRO or Preliminary Injunction:
Definition
"abuse of discretion."
Term
Permanent Injunction:
Definition
same as preliminary injunction, without the "likelihood of success on the merits" element.

CAR
irreparable Harm
no remedy at law
Term
Order granting injunction:
Definition
should be reasonable and go no further than necessary to protect plaintiff's rights.

has to set forth reasons for entry, be specific in terms, and detail acts sought to be enjoined.
Term
will courts enter injunctions for encroachment?
Definition
If intentional, yes!
uninentional, no! ...but if they become aware and still don't, then it's intentional!
Term
injunctions and non-possessory interests:
Definition
easements/covenants/etc: Courts will often grant injunctions to protect these things.
Term
injunctions and defamation?
Definition
RARE!! courts do not want to step into 1st amendment realms.
Term
commercial interests that courts will sometimes protect with injunctions:
Definition
interfercence with contract
unfair competition
trade libel
trade secrets
trademarks
copyright
patent
right to publicity
Term
specific performance:
Definition
mandatory injunction in the context of a contract case.
Term
5 elements to show for specific performance
Definition
1. existence of valid contract.
2. legal remedies are inadequate.
3. enforcement is fair and feasible.
4. mutuality of performance (you have to perform your obligations before you ask someone to perform theirs)
5. absence of defenses.
Term
If parties include a provision that says "this contract can be enforced by specific performance..."
Definition
It's STILL up to the court.
Term
Contracts to sell real property....
Definition
real property is ALWAYS unique; thus specific performance is very likely to be an appropriate remedy.
Term
contracts for personal service...
Definition
not generally enforced by spec performance! to tough to enforce. not feasible.
Term
land sale contracts:
Definition
specific performance almost always available.
statute of frauds requires land sale contracts be in writing.
Term
partial specific performance with abatement:
Definition
if, in land sale, buyer is unaware of encumbrances when he makes the contract, he can sue for partial specific performance (for delivery of the land), with abatement (reduction in cost reflective of the encumbrance).
Term
Uniform vendor and purchaser risk act:
Definition
active in illinois.

Under that rule, liability for loss is determined by whether seller has transferred either title or possession.

If purchaser has taken neither, then purchaser doesn't have to go through with the deal and recover any money spent.
Term
covenants not to compete:
Definition
Can be enforced, so long as covenant not to compete is ancillary to another contract.
Term
reasonability of covenant not to compete
Definition
no greater than necessary to protect legit business interest
doesn't pose hardship on employee
not injurious to public
Term
Recission
Definition
voiding a contract, and leaving the parties as if the contract had never been made.

a party can sue for a decree of recission or cancellation.

Courts are reluctant to use this power unless both parties can be put back in the pre-contract position.

One slightly more common situation: mutual mistake.
Term
reformation
Definition
written contract can be reformed to reflect true intention of the parties.

elements:
valid contract
in writing
fails to express intent of parties.
Term
defenses to reformation:
Definition
If instrument is delivered to bona fide purchaser without notice, then reformation will not be allowed.
Term
equitable defenses:
Definition
"you must come to equity in equity."
won't defeat claim necessarily, but rather just the claim for equitable relief.

unclean hands
laches
collateral estoppel
Term
unclean hands
Definition
party must not have engaged in any wrongdoing that relates to the specific transaction in question.

Misconduct has to be on THAT case, on THAT subject matter.
Term
laches
Definition
delay.
"sleeping on one's rights."
If Defendant has been prejudiced by the delay, even if the SoL hasn't run, P may be denied equitable relief.
Term
undue hardship
Definition
court may limit P's remedy to damages if there will be undue hardship on defendant or community
Term
collateral estoppel:
Definition
"you said it, the other person relied on, and now we're not going to let you come in here and deny it when it's convenient."

party misrepresents/conceals material fact.
other party didn't know represenations were false
reasonably foreseeable that party would rely
party did rely.
Term
suit to quiet title
Definition
arises when p is in possession of land and wants to remove a cloud from the title.
Term
constructive trust
Definition
when title to property is improperly obtained, court will transfer legal ownership of property to plaintiff, and make current title holder a trustee.

D must have legal title to property, but would be unjustly enriched if he retained title.
Term
equitable lien.
Definition
BUHHH
Term
subrogation
Definition
BUHHH
Term
equitable accounting
Definition
when there has been an alleged breach of fiduciary duty in which you have an interest, or some good reason to want to know what is going on with some money, court can force the person to produce the information.
Term
enforcement of equitable remedies:
Definition
contempt power. court can bring citation and proceeding against party who has not complied with injunction. can be civil or criminal. can be prison time. penalty has to specify how defendant can clear themselves.
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