Flashcards in FL Equity Deck (89)
4 most common equitable remedies:
(2) specific performance
(3) rescission and reformation
Most frequently encountered equitable defenses:
(1) Unclean hands
(2) Time bar (laches)
(3) Impossibility or undue hardship
(4) Freedom of speech
General requirements for injunctive relief:
(1) Legal remedy is inadequate
(2) Enforcement of injunction is feasible
(3) Hardship to ∆ does not outweigh benefit to π
(4) No defenses available
Most common examples of legal remedy being inadequate:
(1) Subject matter of litigation is unique or rare (real property);
(2) Damages are speculative or uncertain;
(3) Where multiple lawsuits are required;
(4) Insolvency of ∆
(5) Where irreparable harm results form ∆'s conduct which cannot be fully compensated
For an equitable remedy to be feasible there must be present in the forum state either:
(1) A person ordered to act; or
(2) Object that is the purpose of where the suit is located
Equity might decline mandatory relief if:
(1) Too difficult to enforce order;
(2) Act to be performed involves matters of personal taste and/or act to be performed requires skill or is very complex;
(3) Act beyond ∆'s ability to perform
(4) Court traditionally refuses to order performance of personal service contract
A agreed to sell B a 2010 white Honda Accord EX. A refuses to deliver the car even though B is ready to pay the agreed price. B asks the court to order A to deliver the car. What result and why?
No equitable remedy - look for actual damages.
(K price - cover = damages)
A agreed to sell B Elvis' Cadillac. A refuses to deliver the car even though B is ready to pay the agreed price. B asks the court to order A to deliver the car. What result and why?
Equitable remedy available; maybe specific performance
Because unique good
C agreed to sell D five acres of land. C refuses to convey, even though D is ready to pay the agreed price. There are several nearly identical five-acre tracts nearby. D asks the court to order C to convey. What result and why?
Equitable relief available because land is unique.
Every weekend C drives across D's farm to get to a lake cottage. D asks the court to order C to stop. What result and why?
Equitable relief is available to prevent him from getting an easement by prescription. Injunction.
E agreed to sell F some silverware that belonged to their grandparents. The same silverware pattern can be purchased at any department store for the agreed price. F wants the court to make E deliver the silverware. What result and why?
Equitable relief available because of sentimental value.
As part of a divorce suit, W asks a court to order H to convey some real estate standing in H's name which W contends belongs to her. Neither H nor the real estate is located in the forum state. What result and why?
No equitable relief available. Out of court's jurisdiction over husband or property. Can't enforce.
Perot hired a world-famous artist to paint a "good likeness" of him. When the portrait is finished, Perot does not think that it looks at all like him (the ears are too large). Perot wants the court to order the artist to correct the portrait. Will he be successful?
No because it is a matter of personal taste.
L hired M, a prominent architect, to design a new office building. M now refuses to do so and has instead agreed to design a new office building for N, a competitor of L. L wants the court to order M to perform their agreement. What result and why?
Won't enforce person service contract, but may order M not to build for N.
Injunctions are normally available for:
(1) Continuous trespass to land
(2) Conversion of a unique chattel
(3) To prevent the continuation of a wrongfully instituted suit whether that suit is (a) malicious or (b) suit brought in other state that doesn't have jurisdiction
Injunctions are sometimes available to eliminate a nuisance:
(1) Provided it is a private nuisance
(2) but not if it is a public nuisance
Unless: π can show a special damage (different from all others in community)
Injunctions are sometimes available to prevent waste:
(1) Provided it is destructive or permissive
(2) But generally not if it is ameliorative
Note: some ameliorative waste may be enjoined (i.e., tearing down a historic home to replace it with apartments)
Injunctions are sometimes available to prevent enforcement of a fraudulently obtained judgment:
(1) provided it was obtained by extrinsic fraud (bribery, judges, jurors)
(2) but not if it was obtained by intrinsic fraud (things occurring in the trial)
Injunctions are sometimes available for inducing breach of contract and/or refusal to deal
When a ∆ encourages someone to breach a contract with a competitor or to refuse to enter into or continue a relationship with a competitor, an injunction may be granted unless the ∆'s conduct is privileged.
This is tortious interference with a business relationship!
Elements for tortious interference with a business relationship:
(1) Valid contractual relationship
(2) ∆ knows of relationship
(3) ∆ induces breach
(4) π suffers damages
Factors the court considers in determining whether a privilege exists:
(1) What kind of relationship is ∆'s conduct affecting?
(2) What is the nature of ∆'s conduct?
(3) What is the relationship between the parties?
(4) What are ∆'s motives?
(5) What social interest might be advanced?
Equity justifies the protection of trade secrets by applying one or more of the following legal theories:
(a) Property right - trade secret is a property right
(b) Fiduciary relationship - using relationship to help self not ok
(c) Contract relationship - to not reveal...
Injunctions are normally NOT available for:
(1) Defamation (sue for slander/libel)
(2) Trade libel
(3) Publication of private facts
(4) Equity generally will not enjoin pending criminal proceedings, and will enjoin threatened criminal proceedings only under extraordinary circumstances.
Two kinds of temporary injunctive relief available:
(1) With notice to adverse party
(2) Without notice to adverse party (a) violating trademark, copyright; (b) domestic violence
To obtain temporary injunctive relief, you must show:
(1) That it is necessary to preserve status quo
(2) Likelihood of prevailing at trial (reasonable probability of prevailing)
Instituted by a private party, as part of an underlying action in order to:
(a) Compensate π for damages caused by ∆'s disobedience of court order;
(b) Can be coercive to prevent further losses
Brought by the government to punish errant behavior. Its purpose is to uphold the dignity of the court.
Criminal Contempt can be further classified as either:
(1) Direct - in presence of judge
(2) Indirect - action that occurs outside presence of court; need testimony + hearing to show violated
Equitable remedy by which a party to a contract is ordered to perform according to its terms.