The Nature of Equitable Remedies Flashcards
(14 cards)
Which characteristic is NOT shared by all equitable remedies?
A. They are discretionary in nature.
B. They operate against the defendant personally.
C. They are available only to beneficiaries of trusts.
D. They are granted only when common-law damages are inadequate.
C. They are available only to beneficiaries of trusts.
Explanation: Equitable remedies are available to everyone, not just trust beneficiaries
At common law, the only available remedy is:
A. Specific Performance
B. Injunctions.
C. Damages
D. Account of profits.
C. Damages.
Explanation: Equity supplements common law by providing remedies (e.g., injunctions, specific performance, account of profits) when damages alone are insufficient
Which of these is an example of a proprietary equitable remedy?
A. Injunction.
B. Specific performance.
C. Account of profits.
D. Constructive trust.
D. Constructive trust.
Explanation: Proprietary remedies (e.g., constructive trust) grant an equitable interest in property; personal remedies (e.g., account of profits) bind the defendant
The “clean hands” doctrine requires that:
A. The claimant must not have acted improperly in relation to the relief sought.
B. The defendant must admit wrongdoing.
C. The claimant must be impecunious.
D. The remedy must be in writing.
A. The claimant must not have acted improperly in relation to the relief sought.
Explanation: Equity demands that claimants come with “clean hands” and seek relief without undue delay
A landowner seeks to stop a neighbour from building an extension that encroaches on their property. Damages would be inadequate because:
A. Money cannot restore precise boundary lines.
B. The neighbour cannot pay.
C. Boundary disputes fall outside equity.
D. Damages are always adequate.
A. Money cannot restore precise boundary lines.
Explanation: When damages fail to remedy irreparable harm (here, encroachment), an injunction is appropriate
Company A contracts with Supplier B for unique machinery. B refuses delivery. A sues for specific performance. This remedy is suitable because:
A. Damages would compensate fully.
B. The machinery is unique and irreplaceable.
C. Specific performance is available at law.
D. Injunctions are only for torts.
B. The machinery is unique and irreplaceable.
Explanation: Equity grants specific performance where subject matter is unique, making damages inadequate
A trustee misappropriates trust funds, invests them profitably overseas, and refuses to return the gains. The beneficiary’s best remedy is:
A. Damages at common law.
B. Account of profits.
C. Specific performance.
D. Freeze assets.
B. Account of profits.
Explanation: When a fiduciary profits from a breach, equity orders an account of profits to disgorge gains
An interim injunction to preserve the status quo requires the court to consider whether:
A. The defendant has no defence.
B. There is a serious question to be tried and the balance of convenience favors granting relief.
C. The claimant will never win at trial.
D. Damages are adequate.
B. There is a serious question to be tried and the balance of convenience favors granting relief.
Explanation: Under American Cyanamid guidelines, interim injunctions demand a real issue and consideration of convenience
Which factor does NOT typically weigh against granting an equitable remedy?
A. Delay by the claimant (laches).
B. Hardship to the defendant.
C. The claimant’s improper conduct.
D. Availability of damages at common law.
D. Availability of damages at common law.
Explanation: Equity intervenes only when damages are inadequate; that availability weighs against equity
A company’s assets have been wrongfully sold by its director. To protect against dissipation during litigation, the company should seek:
A. Specific performance.
B. An account of profits.
C. A freezing order.
D. An injunction to compel accounting.
C. A freezing order.
Explanation: Freezing orders prevent removal of assets pending trial, preserving the court’s ability to grant final relief
Which statement about equitable remedies is CORRECT?
A. They create proprietary rights in all cases.
B. They are always granted at the claimant’s discretion.
C. They are discretionary, personal or proprietary, and require clean hands.
D. They must be awarded if the claimant prevails at trial.
C. They are discretionary, personal or proprietary, and require clean hands.
Explanation: Equity’s hallmarks: discretion, personal/proprietary nature, inadequacy of damages, clean hands
Which remedy would likely be denied if granting it would cause significant hardship to an innocent third party?
A. Damages.
B. Injunction.
C. Account of profits.
D. Specific performance.
B. Injunction.
Explanation: Equitable remedies cannot impose unnecessary hardship on third parties and must be proportionate
Which of the following best describes a Search Order?
A. A mandatory injunction permitting entry onto premises to inspect, copy, or remove documents without notice if urgent
B. A prohibitory injunction restraining the removal of assets from the jurisdiction
C. A proprietary remedy creating a constructive trust over goods on the premises
D. A mandatory order compelling the defendant to pay security for costs
A. A mandatory injunction permitting entry onto premises to inspect, copy, or remove documents without notice if urgent.
Explanation: Search Orders (sometimes called “Anton Piller” orders) allow ex parte access to prevent destruction of evidence, requiring a strong prima facie case, risk of serious damage, and clear evidence of document concealment or destruction.
Which factor is NOT required for the grant of a Search Order?
A. Extremely strong prima facie case
B. Real risk of serious damage to the applicant
C. Clear evidence the defendant holds and may destroy crucial documents
D. The defendant’s insolvency or bankruptcy
D. The defendant’s insolvency or bankruptcy.
Explanation: While insolvency may increase risk of concealment, it is not a formal requirement. The key criteria are seriousness of the case, risk of damage, and evidence of potential destruction of documents.
