Equity (law)

“ Like recht and droit it passed from the sense of justice in itself to that of the rules in accordance with which justice is administered.
4. Fourthly and lastly we have to notice a legal and technical use of the term equity, as meaning any claim or advantage recognised or conferred by a rule of equity, just as a right signifies any claim or advantage derived from a rule of right. An equity is an equitable, as opposed to a legal right. “When the equities are equal,” so runs the maxim of Chancery, “the law prevails.” So a debt is assignable “subject to equities.” ”

“ If a legal right is capable of being the subject of an equitable obligation, the power of equity to impose an obligation upon the owner of it as such is subject to one limitation only, namely, that which is imposed by law. ”

“ It is sufficient, for our purpose, that every just law is dictated by reason, and that the practice of every legal court is regulated by equity. It is the quality of reason, to be invariable and constant; and of equity, to give to one man what, in the same case, is given to another. ”

“ But the common law has been enlarged and enriched under the principles and maxims of equity, which are constantly applied at the present day in this country, and even in England, for the relief of grantees, the protection of mortgagors, and the benefit of purchasers, by a wise adaptation of ancient forms to the more liberal spirit of modern times. ”

“ That wherever the rights or the situation of parties are clearly defined and established by law, equity has no power to change or unsettle those rights or that situation, but in all such instances the maxim equitas sequiter legem is strictly applicable. ”

“ So, also, if the owner of a right has incurred a legal obligation to transfer it to another, and everything has been done, and all things have happened, necessary to transfer the right, if it were equitable, equity will treat the right as having passed in equity, though not at law, and, therefore, will impose upon its owner an obligation to hold it for the benefit of the legal obligee. ”

“ For instance, it does not constrain the states to accept particular modern doctrines of equity, or adopt a combined system of law and equity procedure, or dispense with all necessity for form and method in pleading, or give untrammeled liberty to make amendments. ”

“ Equity.—Finally, there is the branch of jurisprudence known as equity. People think of this word as implying something that is more just than the law, something which has its roots in the conscience of the judge rather than in the statute books. But equity as actually administered in the courts is made up of formal rules which the judges apply in certain cases without having much discretion in the matter. The rules of equity are written in books just like the rules of law, and they are about as precise. ”

“ And though we have repeatedly decided in this court that the statute of a state cannot control the mode of procedure in equity cases in Federal courts, nor deprive them of their separate equity jurisdiction, we have also held that, where a statute of a state created a new right or provided a new remedy, the Federal courts will enforce that right, either on the common-law or equity side of its docket, as the nature of the new right or new remedy requires. ”

“ The separation of cases in law from those in equity, is a necessary incident of the common law; one part of the system cannot be engrafted on the civil law, without the other: of consequence, the introduction of the equity part of the common law into a state which has adopted the civil law, necessarily displaces it; and introduces a system of jurisprudence wholly at variance therewith. ”

“ While it aims at assisting the defects of the common law, by extending relief to those rights of property which the strict law does not recognize, and by giving more ample and distributive redress than the ordinary tribunals afford, equity by no means either controls, mitigates, or supersedes the common law, but rather guides itself by its analogies, and does not assume any power to subvert its doctrines. ”

“ A bill in equity is not the proper remedy to recover the possession of lands; and where there is an adequate and complete remedy at law, a court of equity will not interpose unless upon some matters coming under some peculiar head of concurrent equity jurisdiction. [6]
'In those cases where it is permissible under the code to combine in the same proceeding or petition legal and equitable claim, the matter in equity and the action at law must be separately stated, and must necessarily be separately tried. ”

“ Accordingly a suit in equity to enforce a legal right can be brought only when the court can give more complete and effectual relief, in kind or in degree, on the equity side, than on the common-law side ”

“ The interplay between law and equity in the evolution of more just results than the hardened common law afforded, has properly been drawn upon in working out accommodating relationships between the judiciary and administrative agencies. ”

“ Accordingly, it has never been doubted that a vendor of land has as much right to enforce performance of the contract in equity as the vendee. This right of the vendor cannot, indeed, be demonstrated. Equity might have refused to assume jurisdiction, except at the suit of the vendee, without committing any absurdity, and perhaps without doing any clear injustice to the vendor. Courts of equity have preferred, however, in this as in other cases, to adhere to their favorite maxim that equality is equity. ”

“ It is true that in some instances equity does what is called compelling specific performance. But, in the first place, I am speaking of the common law, and, in the next, this only means that equity compels the performance of certain elements of the total promise which are still capable of performance. For instance, take a promise to convey land within a certain time, a court of equity is not in the habit of interfering until the time has gone by, so that the promise cannot be performed as made. ”

“ Notwithstanding the strictness, particularly in the earlier cases in the courts of common law, with respect to assignments of equitable interests and choses in action, the books abound with cases showing that the rule at the common law has been much relaxed, or almost disregarded, by the courts of equity, which, from a very early period, have held that assignments for valuable consideration, of a mere possibility, are valid, and will be carried into effect upon the same principle as they enforce the performance of an agreement, when not contrary to their own rules or to public policy. ”

“ It would seem to me a justice unknown to the common law, to apply all the effects of an insolvent corporation to the debt of the government, and strip individuals. In such a case, the rule that equality is equity, would seem a very appropriate one. An equal distribution of all the effects among all the creditors, would certainly not operate unjustly. ”

“ It is indisputable that the court was clearly right, as a matter of law, in holding that a court of equity in any event would not afford relief where there had been such laches as would cause it to be inequitable to do so. ”

“ Accordingly the equitable man (ἐπιεικής) is he who does not push the law to its extreme, but, having legal justice on his side, is disposed to make allowances. Equity as thus described would correspond rather to the judicial discretion which modifies the administration of the law than to the antagonistic system which claims to supersede the law. ”

“ The conclusion of the argument on this subject was thus stated:
'The general rule is that, where jurisdiction in equity has been established, a subsequent statute creating a remedy at law or removing the obstacle at law upon which the existence of the equity jurisdiction was originally founded does not oust equity of that jurisdiction unless the statute affirmatively discloses the legislative intent to make the legal remedy exclusive . . . ”

“ Thus equitable jurisdiction is said to be exclusive, concurrent or auxiliary. Equity has exclusive jurisdiction where it recognizes rights which are unknown to the common law. The most important example is trusts. Equity has concurrent jurisdiction in cases where the law recognized the right but did not give adequate relief, or did not give relief without circuity of action or some similar inconvenience. And equity has auxiliary jurisdiction when the machinery of the courts of law was unable to procure the necessary evidence. ”

“ Nor does equity ever complain of their so acting, or seek to put any restraint upon their action, or question the validity and legality of their acts; and yet equity acts with the same freedom from restraint, even when dealing with legal rights, that courts of law do when dealing with rights of their own creation. ”

“ Again, it is well established that equity will entertain jurisdiction, and afford relief against the collection of a judgment, where, in justice and good conscience, it ought not to be enforced, as where there is a meritorious, equitable defense thereto, which could not have been set up at law, or which the party was, without fault or negligence, prevented from interposing. ”

“ That court has made separate regulations for common-law and equity practice. The rules in relation to the latter are not materially different from those adopted by this court for equity cases in the circuit courts. ”

“ At all events,there is an important class of cases in which equity, rightly or wrongly, gives relief to the party in whom the legal right created by the contract is vested, though, confessedly, such party could not recover in an action at law. ”

“ The doctrine of equitable discretion properly involves no more than a choice among remedies, an orderly management of judicial procedures. Doubtless there are times when equity should leave parties to their remedy 'at law,' i.e., to their remedy in the ordinary course of the threatened proceeding. ”

“ It must be plain and adequate; or, in other words, as practical and efficient to the ends of justice and its prompt administration as the remedy in equity.' And, as appears by that case, the principle is as applicable in cases where a complainant resorts to a court of equity to enforce a defense to an action at law as where he seeks by a bill in equity other relief. ”

“ Where a party has an equitable lien, if he be guilty of such negligence as would bar him at law, he shall be barred in equity. In relation to the whole class of incorporeal hereditaments, whether the cases arise in equity, or at law, the bar is furnished, nor by the terms of the statute of limitations, but by its analogy. ”

“ We held that, in this connection, the phrase 'fair and equitable' had become a term of art, that Congress used it in the sense in which it had been used by the courts in reorganization cases, and that whether a plan met the test of fairness and equity long established by judicial decision was not a question to be answered by the creditors and stockholders but by the court as a matter of law. ”

“ Equity, where possible, always favours a tenancy in common as opposed to a joint tenancy.
* 71. Equity acts in personam: i.e., against the person.
Judgments of Courts of Law were always enforced in rem, by writ of fieri facias, &c., but the decrees of the Court of Chancery could always be enforced in personam, by attachment. (See Penn v. Lord Baltimore, 1 Wh. and Tud. L. C. 8th ed. p. 800.)
* 72. Equity imputes an intention to fulfil an obligation. (If the thing actually done might have been done with an intention to fulfil an obligation.) ”

“ According to the usual legal phraseology, the difference between legal and equitable assets is this; “legal assets are such as constitute the fund for the payment of debts, according to their legal priority; whereas, equitable assets [Pg 24] are those which can be reached only by the aid of a court of equity, and are subject to distribution on equitable principles, according to which, as equity favours equality, they are to be divided pari passu among all the creditors.” ”

“ In reality there are two, and only two, foundations of law; and they are both of them conditions without which nothing can give it any force: I mean equity and utility. With respect to the former, it grows out of the great rule of equality, which is grounded upon our common nature, and which Philo, with propriety and beauty, calls the mother of justice. All human laws are, properly speaking, only declaratory; they may alter the mode and application, but have no power over the substance of original justice. ”

“ Justice STORY said that an information in equity at the suit of the attorney general would lie in cases of purpresture and public nuisance; the jurisdiction of courts of equity being sustained because of 'their ability to give a more complete and perfect remedy than is attainable at law, in order to prevent irreparable mischief, and also to suppress oppressive and vexatious litigations.' Eq. ”

“ But, according to the course of proceeding under this head in equity, in order to entitle the party to the remedy, a case must be presented appropriate for the exercise of judicial power; the rights in danger, as we have seen, must be rights of persons or property, not merely political rights, which do not belong to the jurisdiction of a court, either in law or in equity.'
In Marye v. ”

“ While this general doctrine prevails in equity as well as at law, equity sometimes exercises it jurisdiction on account of a mistake of law. If the mistake of law is not pure and simple, but is induced or accompanied by other special facts giving rise to an independent equity on behalf of the mistaken person, such as inequitable conduct of the other party, equity will interpose its aid. Even when a mistake of law is pure and simple, equity may in some cases interfere. ”

“ Defendants especially demur to the right of plaintiffs to bring their bill in equity, as neither the law nor the jurisprudence of this state authorizes or provides suits in equity, and especially is this so as to real estate situated in the state. ”