EQUITABLE REMEDIES

I.    GENERALLY.

A remedy is the lawful means employed to enforce a right or redress an injury. Suppose A has purchased an automobile from B who refused to deliver it. In a court of equity A could compel B to deliver the car; this would be an equitable remedy. In a court of law A could recover damages for the loss he had sustained through B's refusal to deliver the automobile; this would be a legal remedy. Relief in equity is often sought to compel a person to execute a contract that the party has made. It quite frequently happens that a seller regrets his action after the contract has been made. The court of equity will compel the contracting party to deliver the property, provided that the law gives the purchaser no adequate remedy. When an article has a peculiar sentimental value, when it is of rare value, like an heirloom, or when it is an article that cannot be easily purchased in the open market, the one party can compel the other to fulfill the contract. Ordinarily, the buyer of articles like cattle, lumber, dry goods, or hardware has only the legal remedy to recover damages and not the remedy of "specific performance" for unique goods.

A.    CONDITIONS FOR RELIEF IN EQUITY.

Equity will enforce agreements or grant relief when legal remedies or damages would be inadequate, for example:

    1. When the seller of a business agrees not to enter into competition with the buyer;
    2. When an employee agrees not to disclose the trade secrets of his employer;
    3. When a tenant threatens or attempts to injure the real estate of the landlord;
    4. When an established patent has been infringed;
    5. When only the actual performance of an agreement will suffice, as where the property is unique.

And conversely, equity will not enforce agreements or grant relief when the law has an adequate remedy.

    1. When the goods contracted for can be readily purchased in the open market;
    2. When the contract would force a person to perform a contract to render personal services.
    3. When the contract in question is one where one party agrees to lend money to the other.
    4. When such agreement would be in restraint of trade, would create a monopoly, or would be illegal for any other reason.

And, the party seeking the equitable relief must show "clean hands," which would entitle that party to relief for having performed all of its duties and not contributed in any way to the failure of the situation.

II. INJUNCTIONS.

Relief in equity is often brought about by the means of an injunction. An injunction is a restraining order issued by a court of equity on petition of the injured party. If the need is great the court will immediately issue a temporary injunction that orders the injuring party to do, or not to do, certain things, and fixes the time for a hearing. At this hearing, which is fixed within a reasonable time, and which is conducted like any ordinary trial, the court decides whether the injunction will be dissolved or whether it will be made permanent. Injunctions came into especial prominence through their use against labor unions during strikes. Injunctions were issued and upheld enjoining the members of labor unions from picketing, or otherwise preventing other workers from taking their places. Federal legislation has curbed the use of injunctions against labor groups although they are still legal in some cases.

 

© 2004 Linda Williams. All rights reserved.