,What is equity?- Has a wide range of meanings: The Historical development of Equity
Introduction to Equity 1. Pre 1066- local courts applied local customs
• Aristotle- equity is superior to justice as it can
deal with individual circumstances whereas the country was divided up into counties with the
law is general and must apply uniformly. Historical sources of English Law laws and customs
• Hudson- Equity rectifies unfairness that would 1. Common law- the law as 2. 1055-1485 Norman Conquest- From the No
occur if the common law was to be followed administered by the kings Conquest in 1066 onwards common law began
strictly court became the common develop where a system of law was imposed o
• Means fairness and justice for many people law. entire country. This involved a central system o
• For lawyers equity refers to the body of rules 2. Equity- developed to remedy government with the King at its head. An actio
developed and applied by the court of the deficiencies in the common law had to be commenced by a writ
chancery, presided over by the chancellor and common law, leading to the were limited remedies (damages)
the rules developed under that authority. formal development of the 3 1486- Equity developed from the Tudor peri
Court of Chancery until 1875 onwards through to the court of chancery. Mo
3. Legislation- the growth of pass the litigants to a clergyman- the lord of ch
parliament as the dominate He established a separate court the court of ch
The origins of the court of chancery: force, led to the growth of
1. The rise of the chancellor- the keeper of the legislation as a major source of
great seal and de factor prime minister law. Common Law and Equity- Differe
2. Gradually the chancellor lost political role
and instead began to exercise the Kings idea Hudson claims that the distinctio
of justice The content of Equity common law and equity is intelle
3. By 1473 the chancellor had begun to • The trust- means the ‘true’ owner can be seen in breach of contrac
dispense justice in his own name and his • Equitable estoppel- 2 types: fraud for example. Remedy at co
established his own court, the court of 1. Promissory- Central London Property Trust ltd usually be damages. Whereas re
chancery V High Tress House Ltd (1947)
can be either damages of proprie
4. The chancery court was one of conscious 2. Proprietary-Dillwyn V Llewellyn (1862)
constructive trusts, tracing at eq
which lead to arbitrary justice. However Equity involves the creation/transfer of legal
proprietary estoppel. Other diffe
reforms of Lord Nottingham and Eldon interest in land without a deed
Equitable remedies include- injunction, specific and varied including specific per
introduced the doctrine of precedent to the injunction, rescission, subrogatio
chancery court to remedy this. performance, etc
of profits.
,The Trust Introduction to Equity
Thomas and Hudson define the trust as the imposition of
Common Law and Equity- The relationship
an equitable obligation on the legal owner of property
(trustee) requiring that person to act in good conscience Generally, equity followed the law unless there was a reason to do otherwise. However th
in relation to the beneficiary of the trust. bound to be a conflict as demonstrated in the following cases:
Simultaneous rights inn the same property by two or
Earl of Oxfords Case (1615)- Equity will take propriety if there is a conflict between t
more parties.
of law and the rules of Equity.
Westdeutscje Landesbank V Islington LBC- Trusts are
Judicature Acts 1873-75 which is now the Senior Court Act 1981 which fused the
imposed when it would be unconscionable for the legal
administration of Equity and the Common Law and went on to reaffirm what was ou
owner to deny the beneficiary’s rights (they are imposed
the above oxford case.
on an individuals conscience)
Errington V Errington (1952)- in this case lord Denning outlines that equity and the l
Any property can be held on trust.
fused.
That trust relates the use of the property- the job of the
trustee is to look after the property for the beneficiaries. Equity is a branch of the law which, before the judicature acts of 1873-75 (now the senior
Act 1981) came into force, was applied and administered by the court of chancery. Fused
systems together. Two are still separate but run side by side. It may refer to justice, mercy
The Trust- Terminology and conscience. Equity is the corrective of legal justice and it relaxes the rigidity of the law
Without principles and maxims of equity, uncertainties will arise. Equity steps in when the
Settlor- the person who creates/ declares the common law has not provided a remedy. Where common law rules have been or are bein
trust. The settlor can also be a beneficiary (self- justify conduct from a party with the legal title to property to engage in conduct that is
declaration of trust) or it can be a third party. unconscionable.
Trustee- the ‘legal’ owner. Trustees can also be a
beneficiary. Must act in the interests of the
What is the modern role of equity? -
beneficiary.
• Equity can still create new concepts in the law- Equity will not suffer a wrong without a remedy.
Beneficiary- the person who is ultimately • Equity contributions- Maxims, remedies and equitable rights
entitled to the property ot ‘equitable owner. • Equitable rights over land and under trusts e.g. restrictive covenant in land.
Can also be a trustee. • Injunctions and specific performance, rescission of contracts
Equitable interest= beneficial interest • Specific examples- pension funds tax benefit, holding shares through intermediaries.
Beneficial owner= beneficiary • Equity is still used in property law such as restrictive covenants, and in contract law such as
Fiduciary duty= the duty to act in good faith in ratification of contract.
your role as trustee.
, Equitable Maxims Introduction to Equity He who comes to equity must come wi
The maxims of equity describes some of the main principles
which guide equitable intervention. They are rarely used in Claimant must have a clear consc
practice today. Historically equitable maxims had higher Snell’s Principles of Equity (Stevens and Haynes
London 1912)- past events. For example if the pe
importance’s because they began to be formulated in 1673-
a previous contact then they are
82 and were one on the main vehicles by which equity - Equity will not suffer a wrong to be without a equity with clean hands. Howeve
changed from being based upon the general notion of
remedy is not of any same facts then it co
conscience to a moral formal and predictable system.
- Equity follows the law that they do have clean hands. If
- Where there are equal equities, the first in same then they are likely to be fo
Equity Acts in Personam time shall prevail clean hands. However, if they do
- Where there is equal equity, the law shall hands they may be able to get rem
This maxim refers to the fact that equity enforce its decisions
by means of personal order against the defendant. Equitable prevail common law which only offers da
- He who seek equity must do equity Overton V Banister (1844)- The co
jurisdiction is exercised against specific persons. This is - He who comes into equity must come with permit an infant who, by fraudule
different from in rem which means against an object i.e. the clean hands his age, persuades trustees to pay
property. This is justified because equity looks at a person’s - Delay defeats equities breach of trust, to claim the mon
conscious i.e. he must come with clean hands. Equity acting - Equity is equity attaining his majority.
in personam also enables specific performance to be used as - Equity looks to intent, rather than to the form Dering V Earl of Winchelsea (1787
-
a remedy. It does not matter that the ‘thing is situated Equity looks on that as done, which ought to wrongdoing that can produce unc
abroad, so long as the trustee can be found. As Equity have been done eyes of equity is wrongdoing with
- Equity imputes an intention to fulfil an necessary relation to the equity s
developed, it acted not only against the original
trustee/owner, but also against subsequent owners. Thus obligation Tinsley V Milligan (1993)- Benefit
- Equity acts in personam a house. The house of lords held
certain equitable rights are property rights, there is equitable
title to land and equitable ownership in goods. Various where the conduced relied on is ‘
statutory provisions, and in particular the 1925 property
legislation and some taxation legislation treat equitable He who seeks equity must do equity
interests as property interests
A claimant seeking equity relief must, before obtaining that relief
Richardson West & Partners (inverness) Ltd V Dick (1969)- do what is right and fair by the defendant.
The English court held they had jurisdiction to grant a decree Chappell V Times Newspapers (1975)- The claimant must show
of specific performance of a contract for the sale of land that he has either performed his part of the contract or has
abord, in Scotland. tendered performance and is willing to perform any further
obligations under the contract.
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