What is equitable relief?

Answer:

Answer

Court remedies that require parties to perform certain acts or specifically perform a contract. Courts generally refrain from granting a remedy in equity if either a remedy in law, i.e. monetary damage awards, or a restitutionary remedy, e.g. quasi-contract remedy to prevent unjust enrichment, is available.

Civil claims may be divided roughly into two categories, tort-based claims and contract-based claims. Equitable reliefs available to either category of civil claims are similar, but there are some differences to the factors that a court will consider before granting an equitable relief of either permanent injunction (in torts) or specific performance (in contracts).

Considerations for Permanent Injunction

1. Inadequacy of Legal Remedy

- Speculative nature of damages

- Insolvency of defendant

- Multiplicity of future lawsuits to remedy the wrong

- Irreparable harm to plaintiff

2. Property or Personal Interest of the Plaintiff at Stake

3. Feasibility of Enforcement

- "Equity will not enjoin a crime" (but tortious conduct can be enjoined).

4. Balancing of Hardship to Parties

5. Defenses of Laches and "Unclean Hands"

- Laches: plaintiff's unreasonable delay in brining a suit that has prejudicial effect on defendant's interests

Considerations for Specific Performance

1. Validity of Contract

2. Condition of the Plaintiff in Performance of the Contract

3. Inadequacy of Legal Remedy

- Speculative nature of damages

- Insolvency of defendant

- Multiplicity of future lawsuits to remedy the wrong

- Uniqueness of the contract subject matter

4. Mutuality of Remedies

5. Feasibility of Enforcement

- Court will generally refuse to grant specific performance for service contracts, because of the implication of involuntary servitude.

- Administrative difficulty with supervising the defendant's specific performance, e.g. whether his contract performance is adequate, may make the court reluctant to grant a relief to the plaintiff. On the other hand, negative injunctions are easier to supervise and so may be granted more readily.

6. Defenses of Laches, "Unclean Hands," and Unconscionability

- Unconscionability: If the terms of the contract are unconscionable to enforce, given the relative bargaining powers of the parties, for example, the court will refuse to order specific performance of its unconscionable terms.