NON-MONETARY REMEDIES Flashcards
Principles of Equitable Relief
There used to be two separate courts, courts of law and equity, but presently, Georgia and most other states have merged the two.
“Equity seeks to do justice when justice + fairness demand.”
There is no right to a jury for purely equitable claims.
Equitable orders enforced by civil + criminal contempt.
Requirements for Equitable Relief
- There must be a valid claim for equitable relief.
- There must be no adequate legal remedy.
- The equitable remedy must be clear and specific to enforce.
- The balance of hardships must be in favor of the plaintiff.
Balance of Hardships
A balance of the hardships must be in favor of the plaintiff for the court to award equitable relief.
AKA, any harm to the plaintiff and inadequacy of a legal remedy must outweigh any undue burden to the defendant or public at large.
Enforcing an Equitable Order
Equitable orders can be awarded via civil or criminal contempt.
Criminal Contempt — Where there had been a crime against the dignity or authority of the court, criminal sanctions can be imposed for a fixed sentence. Meant to be punitive.
Civil Contempt — Not punitive. Meant to be coercive and conditional. When compliance is achieved, the civil contempt should be lifted.
Payment of Bond/Security
The payment of a bond or security may be required for the person seeking a TRO or preliminary injunction.
If the court later finds that the injunction was not warranted, the bond/security will pay for the restrained party’s damages.
Enforceability of Injunctions
An injunction must be clear and specific enough to guide the ∆ as to what it and isn’t allowed.
If a mandatory injunction would require extended court supervision/oversight to enforce, the court may not grant it.
Inadequacy of a Legal Remedy
Threshold for all equitable remedies.
Legal damages may be inadequate if —
- Money damages are too speculative.
- The harm is still occurring / Multiplicity of suits.
- There has been deprivation of a rare or unique property.
- The ∆ is insolvent.
Permanent Injunctions
THRESHOLD ISSUE —
1. Did the plaintiff already prevail on their claim?
2. Are legal/monetary damages inadequate?
IF YES — (HELP)
1. Was there actual irreparable harm?
2. Does an evaluation of the hardships favor the plaintiff? (AKA, is any undue burden to the ∆ outweighed by the plaintiff’s injury or injury to the public?)
3. Would an injunction be in the public’s best interest?
IF YES, CAN IT BE ENFORCED —
1. Is it clear and specific enough for the ∆ to abide by it? (And no extended, extensive, or indefinite court oversight)
TROs + Preliminary Injunctions
Purpose is to maintain the status quo before a final hearing.
THRESHOLD ISSUE —
1. Are legal/monetary damages inadequate?
IF YES — (HELP)
1. Is there an imminent threat of irreparable harm? (More imminent & serious for a TRO)
2. Is the evaluation of the hardships in favor of the plaintiff?
3. Is the plaintiff likely to succeed on the merits of their claim?
4. Has the plaintiff paid security/bond if required, and is the injunction in the public’s best interest?
IF YES —
1. Was notice given and a hearing held?
- If yes, the preliminary injunction can be granted for an indefinite period of time.
- If no, only a TRO can be granted, and is valid for a maximum of 30 days unless renewed.
Specific Performance
Specific performance may be awarded when the following elements are met to require a person to perform or undertake an act, usually to fulfill a pre-existing contractual duty.
- Contract was enforceable (taking into consideration the SOF and any partial performance).
- Mutuality of performance.
- Inadequacy of a legal remedy.
Will not be awarded for personal service contracts.
Non-Compete Contracts
Specific performance is not available for post-employment non-compete agreements unless they are reasonable in TIME, geographical AREA, and SCOPE.
Reformation
Where a court will modify or alter a contract or deed to make it conform to the parties’ intended and true agreement.
Cannot be reformed for failing to comply with the SOF unless there has been substantial partial performance.
Grounds for reformation include fraud or mistake in the execution.
The parol evidence rule does not apply in an action for reformation.
Rescission
Cancelling or rescinding a contract and declaring it void. If a court rescinds a contract, the parties must tender back what they already received under the contract.
Grounds for rescission include — fraud, mistake in the inception, or SUBSTANTIAL breach.
Not available for merely breach; must have been substantial.
Restitution
Restitution will be ordered when necessary to prevent unjust enrichment.
When a person who has been unjustly enriched is ordered to return any benefits that are unjustly conferred.
When the plaintiff confers a benefit unto the ∆ and it would be unjust for the ∆ to retain that benefit, restitution may be ordered.
Constructive Trust
Where a legal remedy is inadequate, AND
- When the ∆ holds legal title to specific property that rightfully belongs to the plaintiff;
- The ∆ breached their fiduciary duty to the plaintiff; and
- Retention of the property by the ∆ would result in unjust enrichment.
If a constructive trust is awarded, TITLE to the property will be transferred from the ∆ into a trust held by the ∆ for the plaintiff, for which the plaintiff is entitled to all of the profits.
