Continued: Origins of Common Law
EQUITABLE MAXIMS
Initially, there were few guidelines for Chancellors to use. However, as time went on a series of maxims were developed which formed the basis of the rules on which equity operated. Maxim is a broad statement of principle, the truth and reasonableness of which are self-evident. A rule of equity, the system of justice that complements the Common Law. As equity became more formal, judges became more likely to follow past decisions.
Today the doctrine of judicial precedent applies to cases involving equity, just as it applies to cases involving the common law.
Many of the rules on which equity is based are expressed in a series of sayings. The most important of these maxims are as follows:
1. He who seeks equity must do equity.
🔨Chappell v Times Newspapers Ltd
A group of workers led by Chappell took a strike action. Times Newspapers threatened that if they were to continue to do so they will face dismissal. The workers applied for injunction against dismissal. The court held that the plaintiffs had to be prepared to do equity, if they were telling the employers that they must keep to their part of their contract.
2. He who comes to equity must come with clean hands.
In other words an equitable principle or remedy will not granted to a plaintiff who has not acted fairly.
🔨 D & C Builders Ltd v Rees
A small building firm had done work for Mr and Mrs Rees. The total bill was £732 of which Mr and Mrs Rees had paid £250 in advance. When the builders asked for the remaining £482, the Rees, who knew the builders were in financial difficulties and needed money urgently, claimed that the work had not been done properly and they were only prepared to pay £300. The builders reluctantly agreed to accept the £300 ‘in completion of the account’, but afterwards sued the Rees for the remaining £182. At common law, part payment of a debt is not considered as satisfying the debt and the builders could claim the extra. Equity, however, has a doctrine of equitable estoppel under which the courts can declare that the plaintiff is prevented from asking the rest. Lord Denning, in the Court of Appeal, refused to apply the doctrine of equitable estoppel because the Reeses had taken unfair advantage of the fact that they knew the builders were in financial difficulties. So far as equity was concerned the Reeses had not come to court with ‘clean hands’.
3. Delay defeats equity.
This means that a plaintiff must not wait too long before making a claim as this might lead to unfairness to the other party.
🔨Leaf v International Galleries
A plaintiff was sold a painting, which both parties mistakenly believed was by Constable J. The court did not award the equitable remedy of rescission, since there had been a delay of five years between the contract and the discovery that the painting was not by Constable.
Equity imposes responsibilities on its seeker to act fast.
4. Equity is equality.
Where two people have an equal right, the property will be divided equally.
5. Equity looks to the intention rather than the form.
🔨Berry v Berry
A deed was held to have been altered by a simple contract.Under common law rules a deed could only be altered by another deed. But equity decided that as the parties had intended to alter the deed, it would be fair to look at that intention rather than the fact that they got the formalities wrong.
6. Equity acts in personam.
Equitable decrees were originally enforced against the person of the defendant (i.e. by imprisonment) and not against any property involved in the dispute. The defendant’s property could be confiscated until he obeyed the decree. Today, the court can order a person to execute a document and if he does not do so, the court will appoint someone to execute it on his behalf.
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EQUITABLE MAXIMS
Initially, there were few guidelines for Chancellors to use. However, as time went on a series of maxims were developed which formed the basis of the rules on which equity operated. Maxim is a broad statement of principle, the truth and reasonableness of which are self-evident. A rule of equity, the system of justice that complements the Common Law. As equity became more formal, judges became more likely to follow past decisions.
Today the doctrine of judicial precedent applies to cases involving equity, just as it applies to cases involving the common law.
Many of the rules on which equity is based are expressed in a series of sayings. The most important of these maxims are as follows:
1. He who seeks equity must do equity.
🔨Chappell v Times Newspapers Ltd
A group of workers led by Chappell took a strike action. Times Newspapers threatened that if they were to continue to do so they will face dismissal. The workers applied for injunction against dismissal. The court held that the plaintiffs had to be prepared to do equity, if they were telling the employers that they must keep to their part of their contract.
2. He who comes to equity must come with clean hands.
In other words an equitable principle or remedy will not granted to a plaintiff who has not acted fairly.
🔨 D & C Builders Ltd v Rees
A small building firm had done work for Mr and Mrs Rees. The total bill was £732 of which Mr and Mrs Rees had paid £250 in advance. When the builders asked for the remaining £482, the Rees, who knew the builders were in financial difficulties and needed money urgently, claimed that the work had not been done properly and they were only prepared to pay £300. The builders reluctantly agreed to accept the £300 ‘in completion of the account’, but afterwards sued the Rees for the remaining £182. At common law, part payment of a debt is not considered as satisfying the debt and the builders could claim the extra. Equity, however, has a doctrine of equitable estoppel under which the courts can declare that the plaintiff is prevented from asking the rest. Lord Denning, in the Court of Appeal, refused to apply the doctrine of equitable estoppel because the Reeses had taken unfair advantage of the fact that they knew the builders were in financial difficulties. So far as equity was concerned the Reeses had not come to court with ‘clean hands’.
3. Delay defeats equity.
This means that a plaintiff must not wait too long before making a claim as this might lead to unfairness to the other party.
🔨Leaf v International Galleries
A plaintiff was sold a painting, which both parties mistakenly believed was by Constable J. The court did not award the equitable remedy of rescission, since there had been a delay of five years between the contract and the discovery that the painting was not by Constable.
Equity imposes responsibilities on its seeker to act fast.
4. Equity is equality.
Where two people have an equal right, the property will be divided equally.
5. Equity looks to the intention rather than the form.
🔨Berry v Berry
A deed was held to have been altered by a simple contract.Under common law rules a deed could only be altered by another deed. But equity decided that as the parties had intended to alter the deed, it would be fair to look at that intention rather than the fact that they got the formalities wrong.
6. Equity acts in personam.
Equitable decrees were originally enforced against the person of the defendant (i.e. by imprisonment) and not against any property involved in the dispute. The defendant’s property could be confiscated until he obeyed the decree. Today, the court can order a person to execute a document and if he does not do so, the court will appoint someone to execute it on his behalf.
Page 3 of 5 🔗Go-to Page 1 | cont' below