Equity (De Specific)

Front 1

When does Chancery have jurisdiction?

Back 1

1. personal jurisdiction
2. look to whether the remedy at law is adequate (if no, Chancery) or if Chancery traditionally has jurisdiction
- injunctive relief
- can award money damages when there is an equitable right

Front 2

When is there adequate remedy at law?

Back 2

1. must be available to P as a matter of right
2. full, fair and complete; and
3. as practical and efficient to the ends of justice and as prompt as the equitable remedy

ex. when not – property involved unique, multiplicity of actions, insolvency of D, damages speculative

Front 3

When does Chancery have jurisdiction over fraud cases?

Back 3

Look to what predominates

Equity provides a remedy for innocent or negligent misrepresentations

Front 4

When will a declaratory judgment be issued?

Back 4

Declares rights, status and legal relations of parties

1. controversy must involve the rights or other legal relations of the parties seeking relief
2. the claim of right or other legal interest must be asserted against one who has an interest in contesting the claim
3. the controversy must be between parties whose interests are real and adverse
4. issue involved in the controversy must be ripe for judicial determination; and
5. remedy at law must be inadequate to afford full and complete relief to all parties

Front 5

Is there a right to equitable relief?

Back 5

There is no absolute right to equitable relief, Chancery has discretion

Front 6

What are the equitable defenses?

Back 6

1. lack of case or controversy, ripeness, mootness
2. hardship
3. impracticability – in enforcement
4. lack of specificity – need specificity and precision
5. equitable estoppel
6. waiver – intentional relinquishment of a known right
7. acquiescence
8. ratification
9. laches
10. unclean hands – P guilty of inequitable conduct too
11. unconscionability
12. impossibility – cannot be performed; includes illegality

Front 7

When is there equitable estoppel?

Back 7

When one party, by words or conduct intentionally or unintentionally induces a second party, who is ignorant of the truth and lacked the means of knowledge of the truth, to act in reliance on such words or conduct and to change his position to his detriment

Front 8

What is acquiescence?

Back 8

Conduct of the party subsequent to the transaction is such that it is reasonable to conclude that the party has accepted or adopted it

Front 9

What are the requirements of laches?

Back 9

1. P must have knowledge of the claim
2. there must be an unreasonable delay by P in bringing the claim
3. there must be prejudice to the D arising from the delay

Can use law SOL as evidence

Front 10

When will Chancery deny a contract for unconscionability?

Back 10

1. consideration for the contract was grossly inadequate or its terms were otherwise unfair
2. enforcement of the contract will cause unreasonable or disproportionate hardship to the D or third parties; or
3. D’s agreement to enter into the contract was induced by misrepresentation, mistake, or questionable business practices

Look for “shocks the conscience”

Front 11

What are the two classifications of injunctions?

Back 11

1. mandatory – order that compels the D to perform a specific act; remedies the wrong
2. prohibitory – directs the D not to do a specific act; prevent the wrong

Front 12

What are the three forms of injunctions?

Back 12

1. temporary restraining order – prevent irreparable injury and preserve the status quo pending a hearing on the application for a preliminary injunction; short period
- light, one-sided record
- may be issued without notice to D
2. preliminary injunction – preserve the status quo pending a final determination on the merits
- requires D notice
- informal hearing on a paper record
3. permanent injunction – final word on litigation; only after final determination on the merits

Front 13

What is required for a TRO?

Back 13

1. there is an imminent threat of irreparable injury to P's interests in the absence of such relief (requires affidavits or verified complaint);
2. reasonable probability that P will succeed on the merits of its complaint at final trial; and
3. balance of hardships arising form the issuance of such an order tips in P’s favor on the record presented

Requires a bond

Front 14

What is required for a preliminary injunction?

Back 14

1. reasonable probability of success on the merits (most weight)
2. there is immediate threat of irreparable harm in the absence of an injunction; and
3. the balance of hardships tips in P’s favor

Requires a bond

Front 15

What is required for a permanent injunction?

Back 15

1. actual success on the merits
2. irreparable harm; and
3. harm resulting from failure to issue an injunction outweighs the harm befalling the opposing party if the injunction is issued

If circumstances change, may be granted relief

Front 16

How should an injunction for relief against tortious conduct be analyzed?

Back 16

1. identify the tort
2. is there a protectable interest?
3. is the legal remedy inadequate?
4. are the hardships balanced?
5. Does the D have any defenses?
6. is enforcement feasible?
- can issue out of state injunction if have contempt power over D

Front 17

When will specific performance be issued?

Back 17

Must have a written contract, with consideration, and ability to perform

Only if the terms of the contract are definite and money damages will afford a poor substitute for performance
- look at uniqueness (valuation difficult or uncertain, strong personal significance or sentimental value, or duplicate would be difficult to obtain)
- real property and negative covenants – almost always gets SP
- personal services or personal property – generally no

Front 18

What is equitable conversion?

Back 18

Equity regards that as done what is ultimately must be done

Front 19

What is rescission and what are grounds for rescission?

Back 19

Results in cancellation or ummaking of an agreement and attempts to return the parties to the status quo

1. misrepresentation
2. mistake
3. misconduct, duress, undue influence, illegality, lack of capacity, and failure of consideration

Front 20

What is reformation and what are the grounds of reformation?

Back 20

Change the written agreement to reflect the true intent of the parties or to correct a clerical error

1. mistake
2. misrepresentation

Front 21

When is restitution given?

Back 21

Applies to require D to pay over to P a sum of money which D has acquired under circumstances which might be deemed unjust enrichment or a windfall

Front 22

When is there contempt of an order?

Back 22

1. the court must have jurisdiction over the subject matter of the controversy and the person subject to the order
2. the person must have notice of the order
3. the order must be clear and definite
4. the person must be able to follow the terms of the order, and
5. violation of said order must be prove to the Court’s satisfaction

Front 23

What are the other equitable remedies?

Back 23

1. accounting
2. receivership
3. appointment of custodian
4. constructive trust
5. resulting trusts
6. guardianship
7. partition
8. foreclosure of equitable mortgage

Front 24

How are complaints filed in Chancery?

Back 24

Almost everything e-filed – considered filed when accepted

Front 25

What is required for the initial filing?

Back 25

Complaint and each P must verify the pleading (as well as counterclaims, cross claims and third party complaints, and any amendments)

Front 26

What is required for service?

Back 26

Submit letter to Register giving directions for service by Sheriff or your own special process server

On individual – personally or with someone 18 at D’s dwelling or usual place of abode, or registered agent

Corporations – registered agent or personally on any officer or director of the corp. in DE (non-resident officers or director on registered agent)

Front 27

What are the minimum contact requirements for personal jurisdiction?

Back 27

1. transacts business or performs work or service in state
2. contracts to supply services or items in state
3. causes tortious injury in state by act in state
4. causes tortious injury in state by act out of state if regularly engages in business or other activity in state or derives substantial revenue from services or items consumed in state
5. insures within the state
6. has real property in state

Front 28

When can a case be removed from state to federal court?

Back 28

D can remove when diversity of citizenship

Requirements:
1. only a D can remove
2. predicated on diversity, only removable if none of the parties joined and served as D is a citizen of DE
3. D must remove within 30 days of service of initial pleading

Front 29

When are the rules for filing documents under seal?

Back 29

Must request before, with good cause documents to go under seal

If appeal, request within 3 days of appeal or are unsealed

Front 30

What is important to know about guardianships?

Back 30

Other courts can appoint and approve settlement, then Chancery oversees

Can have a guardian of property or person

Must account for expenditures; usually need to request unless provided

Front 31

What is important to know about wills?

Back 31

- Must file inventory within 3 months of letters
- Must file taxes within 9 months of letters
- Must file an accounting within 1 year of letters

No will – next of kin can request letters; if none within 60 days, interested person can request