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The Framework of Equity
I. What Equity Is
Equity is the body of principles developed by the English Court of Chancery to supply justice where the common-law courts — bound to fixed writs and money damages — could not. Law asks "what rule applies?" Equity asks "what is fair between these parties?" Equity acts in personam: it commands a person to do or refrain from doing something, rather than simply awarding money. In the federal system, law and equity were merged procedurally by FRCP Rule 2 in 1938 — one form of action, the civil action — but the substantive distinctions remain crucial: the Seventh Amendment jury-trial right attaches to legal claims, not equitable ones, and equitable relief is always discretionary.
II. The Fourteen Maxims of Equity
III. Equitable Remedies
IV. Equitable Defenses
V. Law vs. Equity — The Working Divide
Remedy
Law gives damages (money). Equity gives orders — injunction, specific performance, rescission, reformation. Equity will not act if the legal remedy is adequate. Irreparable harm is the ticket into chancery.
Jury
Legal claims carry a Seventh Amendment jury right in federal court. Equitable claims are tried to the judge sitting as chancellor — no jury, full discretion.
Discretion
Legal remedies issue as of right once liability is proven. Equitable relief is discretionary — the court weighs hardship, conduct, and the public interest before granting it.
Timing Defenses
Legal claims are cut off by statutes of limitation. Equitable claims are cut off by laches — unreasonable, prejudicial delay — which can bar relief even inside the limitations period.
Scope of Review
Factual findings in equity are reviewed for clear error; legal conclusions are reviewed de novo; the ultimate decision to grant or deny equitable relief is reviewed for abuse of discretion.
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