Nevada Equity

Front 1

Equitable Lien

Back 1

An equitable charge on the property imposed by law that can be foreclosed, so that the property can be sold to satisfy the plaintiff's claim. If the proceeds are less than the value, the plaintiff receives a deficiency judgment.

Front 2

Tracing

Back 2

The equitable doctrine that allows a court to impose a constructive trust on the proceeds of wrongfully acquired property and is useful when the proceeds are more valuable than the property that was wrongfully acquired.

Front 3

Ameliorative Waste

Back 3

Acts that result in an increase to the value of the land but change its character (e.g. a historic house that is torn down to build a skyscraper).

Generally, equity will not grant injunctive relief in ameliorative waste situations.

Front 4

Destructive Waste

Back 4

Positive acts that cause permanent harm to the land.

Front 5

Permissive Waste

Back 5

Letting the land "go to pot" (i.e., not taking care of it).

Front 6

When may a court grant equitable relief?

Back 6

Where there is no adequate remedy at law (i.e., when money damages are insufficient).

Front 7

Doctrine of Equitable Conversion

Back 7

After a contract for the sale of land has been entered, but before title has actually passed, the buyer is considered the owner of the land and the seller the holder of legal title only as security for the payment of the purchase price.

Front 8

Covenants Not to Compete

Back 8

The terms of a covenant must be reasonable. The standards for reasonableness are:

1. the covenant must be reasonably necessary to protect a legitimate interest of the employer; and

2. the covenant must be reasonable in its geographic scope and duration.

Front 9

Interlocutory Injunction

Back 9

A temporary injunction to maintain the status quo between the parties until a trial on the merits can be held.

Front 10

Constructive Trust

Back 10

An equitable remedy to prevent unjust enrichment. In this case, the defendant is forced to return the property.

If the value of the property subsequent to the taking goes up, apply this remedy.

Front 11

Reformation

Back 11

The remedy whereby the writing setting forth the agreement between the parties is changed so that it conforms to the original intent of the parties.

Front 12

Temporary Restraining Order

Back 12

An emergency order imposed until an adversarial hearing may be held. This is the only type of order that may be issued without a hearing. Will only be issued upon a showing that irreparable injury would likely occur before a preliminary injunction hearing can be scheduled.

Front 13

What are the effects of a transfer of legal title to a bona fide purchaser on remedies?

Back 13

Equitable rights, including the imposition of a constructive trust, are cut off. Legal remedies are still available.

Front 14

Subrogation

Back 14

Permits a person who is required to pay the loss or obligation of another, or to discharge a lien on another's property, to succeed the rights of the person paid.

Front 15

Criminal Contempt Sanction

Back 15

A fine for a fixed amount paid to the court to punish the party for interfering with the court's authority.

Front 16

Civil Contempt Sanction

Back 16

Imposed to coerce compliance with a court order and will cease when the contemnor complies.

Front 17

Compensatory Contempt Sanction

Back 17

Awards damages to a party who was damaged by the contemnor's conduct and will not be abated even after the contemnor complies.

Front 18

Unclean Hands

Back 18

The defense of unclean hands is available if the plaintiff acted improperly with respect to the same transaction involved in the litigation and that action caused prejudice to the defendant.

Front 19

Laches

Back 19

The defense of laches is available when the plaintiff has unreasonably delayed bringing the action and the delay prejudices the defendant. The delay must be unreasonable under the circumstances.

Front 20

Mandatory Injunction

Back 20

Orders a defendant to perform an action.

Front 21

Prohibitive ("Negative") Injunction

Back 21

Orders a defendant not to act.

Front 22

Preliminary Injunction

Back 22

An injunction issued before a full trial on the merits to preserve the status quo. These tend to be temporary until a verdict is reached.

Front 23

Permanent Injunction

Back 23

An injunction issued after a full trial on the merits. As the name suggests, these are permanent.

Front 24

Standard for Preliminary Injunctive Relief

Back 24

Plaintiff must establish that:

1. The injury is irreparable, and will be incurred while waiting for a full trial on the merits, requiring relief now; and

2. Her case is likely to succeed on the merits.

Front 25

Standard for Permanent Injunctive Relief

Back 25

1. Legal remedy is inadequate

2. P has a valid interest that would be protected by the injunction

3. Enforcement is feasible

4. The burden to D does not outweigh the benefit to P (unless D's conduct was willful)

5. No defense

Front 26

Arguments for the Inadequacy of Legal Remedy

Back 26

1. Irreparable harm (uniqueness of property)

2. Speculative damages

3. Continuing harm (necessary to prevent a multiplicity of actions)

4. Insolvency of defendant

Front 27

Injunctions are never available in which actions?

Back 27

1. Defamation

2. Trade libel

3. Invasion of privacy

Injunctions will be denied in these cases because of constitutional free speech considerations.

Front 28

Specific Performance

Back 28

Requires the defendant to perform the terms of the contract.

Front 29

Standards for Specific Performance

Back 29

1. The contract is valid

2. P has already performed or is ready to perform

3. No viable legal remedy

4. It is feasible to enforce the contract

5. No defense

Front 30

When will the court enforce a covenant not to compete?

Back 30

1. The services at issue are unique;

2. The terms of the covenant are reasonable with respect to scope and duration

The enforcement mechanism for a covenant not to compete is an injunction.

Front 31

When is personal property unique?

Back 31

1. The item is one-of-a-kind

2. The item has special value to the buyer (e.g. my grandmother's china)

3. The item is unique due to market circumstances (e.g. there is an oil shortage and gasoline becomes limited)

Front 32

Rescission

Back 32

The original contract is deemed voidable and is rescinded. Any previously rendered performance will be unwound through restitution.

Front 33

When is a contract eligible for rescission?

Back 33

P must show there was a defect relating to the formation of the contract.

E.g. Mistake, misrepresentation, coercion, undue influence, lack of capacity, failure of consideration, illegality

Front 34

Reformation

Back 34

The court changes the written agreement to conform to the original understanding of the parties.

Front 35

When is a contract eligible for reformation?

Back 35

P must show the existence of a valid contract, and the grounds for reformation.

E.g. Mutual mistake, unilateral mistake, misrepresentation