Equity

Front 1

When can P obtain injunctive relief?

Back 1

P can obtain obtain injunctive relief against tortious conduct being or about to be committed if:

(1) legal remedy inadequate;

(2) enforcement would be feasible, practicable, and effective to vindicate P's rights;

(3) balance of hardships--hardship to D or public does not outweigh benefit that P may get from relief sought; and

(4) no defenses available.

Front 2

Interlocutory Injunction--Definition

Back 2

Temporary injunctive relief used to preserve the status quo between the parties until a full trial on the merits can be held.

*Interlocutory = temporary

Front 3

Interlocutory Injunction--Prerequisites

Back 3

Notice usually required & P must show:

(1) P likely to prevail on merits; and

(2) P will suffer irreparable injury before trial can be held unless granted.

Front 4

To obtain specific performance, P must show that:

Back 4

(1) valid K exists;

(2) P has performed (or ready, willing, and able);

(3) legal remedy inadequate;

(4) enforcement feasible; and

(5) no defenses available to D.

Front 5

Covenants Not to Compete: Although employment contract will not be specifically enforced, covenant not to compete may be if:

Back 5

(1) services are unique;

(2) covenant reasonably necessary to protect employer's interests; and

(3) covenant reasonable as to both geographical scope and duration.

*Even so, most courts won't enforce if results in harm to public.

Front 6

Rescission--Definition

Back 6

Voids K for lack of true consent (i.e., no meeting of minds).

Leaves parties as if K never made.

Front 7

Reformation--Definition

Back 7

Changes written agreement to conform to original intent of parties.

Front 8

Reformation: Grounds

Back 8

(1) mutual mistake

(2) unilateral mistake--but only if other party knew or should have known of mistake

(3) misrepresentation (innocent or fraudulent)

Front 9

Rescission: Grounds

Back 9

(1) mutual mistake

(2) unilateral mistake if other party knew or should have known or has not taken steps in reliance, or where mistaken party would suffer great hardship

(3) misrepresentation of material fact + actual reliance (if intentional misrepresentation) or reasonable reliance (if innocent/negligent misrepresentation).

(4) other grounds--duress; undue influence; illegality; lack of capacity; failure of consideration

Front 10

Reformation: Grounds for rescission must have occurred:

Back 10

either before or at the time the contract is entered into.

Front 11

Constructive Trust & Equittable Lien--Purpose

Back 11

To prevent unjust enrichment.

Front 12

Constructive Trust & Equittable Lien--When Available

Back 12

Available when D acquired property at another's expense through fraud, undue influence, abuse of confidence, mistake, or the like.

Front 13

Constructive Trust & Equitable Lien--Which to Use When Both Available

Back 13

constructive trust: property value > P's claim

equitable lien: property value < P's claim

Front 14

Two Types of Interlocutory (Temporary) Injunctions

Back 14

(1) preliminary injunctions

(2) temporary restraining order

Front 15

Preliminary Injunctions

(1) Requirements for Issuing:

(2) Duration:

Back 15

(1) Generally granted only after notice and regular, adversary-type hearing.

(2) Generally remains in effect until conclusion of the full trial.

Front 16

Temporary Restraining Orders

(1) When be it be sought?

(2) Requirements for Issuing:

(3) Duration:

Back 16

(1) Drastic circumstances where irreparable harm will occur before hearing on preliminary injunction can be held.

(2) Some notice if practicable, but may be granted without notice if moving party can make strong showing why notice should not be required.

(3) Usually 10 days (14 days in federal court)

Front 17

When are money damages an inadequate legal remedy?

Back 17

(1) damages speculative

(2) defendant insolvent

(3) irreparable injury

(4) might lead to multiplicity of actions

(5) plaintiff has no right to damages yet (e.g., tort only prospective)

Front 18

Two Types of Permanent Injunctions

Back 18

(1) negative injunctions

(2) mandatory injunctions

Front 19

(1) negative injunctions

(2) mandatory injunctions

Back 19

(1) ordering D to stop doing something

(2) ordering D to do something

Front 20

Three Defenses to Injunctive Relief

Back 20

(1) unclean hands

(2) laches

(3) defenses of impossibility, hardship, and freedom of speech

Front 21

To assert valid defense of laches, D must show:

Back 21

(1) Unreasonable delay in bringing action; and

(2) Delay prejudicial to D

Front 22

Unclean Hands Defense

Back 22

Party seeking injunction acted improperly in transaction in question.

Front 23

Three Contract Equitable Remedies

Back 23

(1) specific performance

(2) rescission

(3) reformation

Front 24

SOF--Part Performance Doctrine: An oral contract for sale of land may be enforced if there is part performance that:

Back 24

unequivocally indicates that the parties have contracted for the sale of land.

Front 25

Constructive Trust: Definition

Back 25

Restitutionary remedy imposed by courts to prevent unjust enrichment when wrongdoer gains title to property through misappropriation of another's money or property through fraud, undue influence, abuse of confidence, mistake, or the like.

Front 26

Constructive Trust: Requirements

Back 26

(1) D's title must be traceable solely to misappropriated property

(2) most courts also require that legal remedy is inadequate.

Front 27

Constructive Trusts: If established, court will:

Back 27

force D to convey title of misappropriated property or its product to P.

*No deficiency judgment available.

*P given priority over unsecured creditors

Front 28

Equitable Lien: Definition

Back 28

Restitutionary remedy imposed by courts to prevent unjust enrichment when wrongdoer has acquired property at expense of others through misappropriation of another's money or property through fraud, undue influence, abuse of confidence, mistake, or the like.

Front 29

Equitable Liens: Requirements

Back 29

(1) D holds title to wrongfully obtained property that can be traced

(2) most courts also require that legal remedy is inadequate, but D's insolvency usually suffices.

Front 30

Equitable Liens: If established:

Back 30

P obtains lien on property obtained or improved and can obtain a deficiency judgment.

*Gives P priority over unsecured creditors.

Front 31

Equitable Liens vs. Constructive Trusts

(1) Equitable lien appropriate when:

(2) Constructive trust should be used when:

Back 31

(1) D holds property worth less than P's claim, or where misappropriate money used to improve, not acquire title to, property.

(2) D holds property worth more than P's claim/

Front 32

Equitable Mortgage:

(1) Definition?

(2) Result?

Back 32

(1) Judge-made mortgage that court imposes against a deed absolute when creditor received the deed from a debtor solely to secure an obligation and later refuses to reconvey property back once debt satisfied.

(2) Court will treat deed as a mortgage and force creditor to foreclose if mortgage is unpaid or reconvey if mortgage is paid.

Front 33

Subrogation: Definition

Back 33

Permits person required to pay loss or obligation of another or discharge lien on another's property to succeed (or "be subrogated") to rights of person paid