Equity

Question 1

What are the different types of equitable relief available and what areas of the law do they apply to?

Answer 1

Torts:

• injunctions

Contracts:

• specific performance
• rescission
• reformation
• constructive trust
• subrogation

Property:

• specific performance
• equitable liens
• equitable mortgages

Question 2

What must a plaintiff show to obtain injunctive relief against tortious conduct being or about to be committed?

Answer 2

i. Inadequate remedy at law
ii. Feasibility, practicality, and effectiveness of the injunctive relief sought
iii. Hardship to D doesn’t greatly outweigh benefit to P of relief sought (ignored if D is willful)
iv. No defenses

Question 3

When would replevin be an inadequate remedy at law for which an injunction may be appropriate?

Answer 3

• D could put up a replevin bond for a unique chattel or
• there’s been a change in the chattel such that a sheriff couldn’t recognize it.

Question 4

When would money damages be an inadequate remedy at law for which an injunction may be appropriate?

Answer 4

Damages are speculative

Damages nominal or unavailable

D is insolvent

Injury is irreparable

Multiplicity of actions may be necessary

Question 5

What is the enforcement mechanism for violation of an injunction?

Answer 5

Contempt: therefore PJ needed.

Question 6

What types of injunctions are available?

Answer 6

Mandatory: ordering something to be done

Negative: ordering something not be done

Interlocutory: temporary

Permanent

Question 7

For which torts should I consider whether an injunction is appropriate?

Answer 7

Nuisance: must be a private nuisance or P may lack standing

Trespass to land: proper when trespass is continuous

Unfair competition: Misappropriation of trade secrets

Question 8

When will an injunction be considered feasible and practical?

Answer 8

Negative injunction preferred: more feasible to stop an activity rather than to mandate an activity

Location of D: if out of state, more difficult to have jurisdiction.

Complexity: if requires court to force someone to exercise individual skill and judgment

Repeated acts: practical if doesn’t involve requiring repeated acts over a period of time because court doesn’t want to supervise.

Question 9

What defenses exist to injunctive equitable relief?

Answer 9

i. P has unclean hands
ii. Latches—

• P has unreasonably delayed action such that
• D’s ability to defend himself has become impaired

iii. Impairs free speech
iv. Impossibility

Question 10

What is the burden of proof for both types of interlocutory injunctions?

Answer 10

Preserve the status quo because likely to prevail on the merits but will suffer irreparable injury before the trial can be held

Question 11

What is the difference between two types of interlocutory orders?

Answer 11

Preliminary injunction:

• Purpose: to preserve status quo
• Duration: lasts until completion of judicial proceeding;
• Requirements to issue: notice to opposing party and adversarial hearing required

Temporary restraining order:

• Purpose: to preserve status quo
• Duration: 10 days (14 in Federal);
• Requirements to issue: some notice, if practicable

Question 12

What is the difference between a preliminary and permanent injunction?

Answer 12

Preliminary injunction:

• Purpose: to preserve status quo
• Duration: lasts until completion of judicial proceeding;
• Requirements to issue: notice to opposing party and adversarial hearing

Permanent injunction:

• Purpose: to grant the relief sought
• Duration: as long as necessary
• Requirements to issue: notice to opposing party and adversarial hearing

Question 13

When will a court grant specific enforcement under a “time is of the essence” clause?

Answer 13

Clause is explicit in K and K is wholly executory (unperformed on both sides).

If partially executed, court will try to avoid forfeiture.

Question 14

What must a plaintiff show to be granted specific performance?

Answer 14

1. Valid K
2. P has performed or is ready to do so
3. Inadequate legal remedy
4. Feasibility of enforcement
5. No defenses available

Question 15

What are three different types of cases where a legal remedy is considered inadequate in a plea for specific performance?

Answer 15

1. Concerns land (always unique—even identical neighboring lots)
2. Rare, unique, or sentimental value item
3. Preventing the person from violating a covenant not to compete

Question 16

When is specific performance of a land contract feasible?

Answer 16

Depends on whether court has jurisdiction over the parties and the res:

• Parties and res: feasible
• Seller and res: only if buyer bringing action
• Buyer and res: feasible
• Parties, no res: trend that feasible and hold seller in contempt if doesn’t convey

Question 17

What defenses exist to specific performance equitable relief?

Answer 17

i. Same as injunctions
ii. All K defenses (e.g., SoF, unless part performance)
iii. Unconscionability at time of K formation

Question 18

When can deficiencies in the quantity or quality of land promised be the subject of a specific performance?

Answer 18

Buyer can compel performance for major and minor defects; seller can only compel if it’s a minor defect.

Question 19

When is a contract rescission appropriate?

Answer 19

Court will set aside the K if when, before or at the time of contracting, there’s been

• a material mistake
  
  • mutual
  • unilateral: only if nonmistaken party knew or should have known of the mistake and (some) relied on contract or suffered great hardship
• material misrepresentation
• other contract defense

Question 20

What is the difference between the purpose for rescission and reformation?

Answer 20

Rescission: to cancel the contract for lack of true consent

Reformation: to conform a writing to the oral agreement of the parties

Question 21

Is unilateral mistake a ground for contract rescission?

Answer 21

Generally not unless the non-mistaken party either knew or should have known of the mistake (and in RI where the non-mistaken party hasn’t relied upon the mistake).

Question 22

What grounds are available for the court to grant reformation?

Answer 22

Mistake or material misrepresentation

Question 23

Which Rhode Island court has jurisdiction over equitable remedies?

Answer 23

Superior court except as provided by the law has exclusive original jurisdiction

Question 24

When will a covenant not to compete be specifically enforced?

Answer 24

Although an employment contract won’t be specifically enforced both because of the prohibition against slavery and because it fails to be feasible and practical, unless it would harm the public, a non-compete will be if:

1. services are unique;
2. covenant is reaonably necessary to protect the employer’s interests; and
3. covenant is reasonable in geographic and temporal scope.

Question 25

What defense exists to reformation?

Answer 25

Subject matter of the contract sought to be reformed was sold to a BFP.

P’s negligence, e.g., didn’t read K, isn’t a bar to reformation.

SoF and parol evidence don’t apply.

Question 26

Can a gift instrument be reformed?

Answer 26

**By donor if **

• gift doesn’t conform to the original intent of the donor and
• donee hasn’t substantially relief on the gift.

Not by donee unless

• donee detrimentally relief on donor’s original, unexpressed intent (majority rule)

Question 27

What is subrogation?

Answer 27

Person required to pay the loss or obligation of another, or to discharge a lien on another’s property, may succeed to the rights of the person paid.