EQUITY

The word ‘equity’ has a meaning of ‘fairness’; this is the basis that it operates, when adding to our law.

The development of Equity

·         The law was very technical; if there was an error in the formalities the person making the claim would lose the case.

·         The only remedy the common law courts could give was ‘damages’

The operation of Equity

1.       Equitable Remedies

a.       Mareva Injunctions

·   A court order freezing the assets of the party to an action or stopping that party moving the assets out of the country.

·   Mareva v International Bulkcarriers (1975)

·   Application will be ex parte

o   One party applies without giving notice to the other side for if the other party did not have notice

b.      Anton Piller Orders

·   An order to a defendant to allow the plaintiff on the defendant’s premises to inspect, copy or remove documents or other objects relating to the plaintiff’s property.

·   Aim: to stop def. from destroying vital evidence

·   Contempt of court

·   Ex parte application

·   Anton Piller v Manufacturing Processes Ltd (1976)

·   Orders used for

o   Breach of copyright

o   Passing off

o   Matrimonial disputes

c.       Specific performance

·   An order of a court which requires a party to perform a specific act, usually what is stated in a contract.

·   Alternative awarding damages

·   Usually used to complete a previously established transaction

·   Protecting the expectation interest of the innocent party

d.      Rectification

·   The ct. will order that, where a mistake has accidentally been made in a document so that it is not a true version of what the parties agreed, that document should be altered to reflect the parties’ intention.

2.       Equitable Maxims

a.       Equity looks to the intention and not the form               

·   Berry v Berry (1929)

·   Equity decided that as the parties had intended to alter the deed, it would be fair to look at the intention rather than the fact they got the formalities wrong.

b.      He who comes to equity must come with clean hands

·   D&C Builders Ltd v Rees (1965)

·   An equitable remedy will not be granted to a plaintiff who has not acted fairly.

c.       Delay defeats equity

·   Leaf v International Galleries (1950)

·   A plaintiff must not wait too long before making a claim as this might lead to unfairness to the other party