Also known as: aequitatis · aequus · aequi · equity · aequity
Written by attorneys · grounded in primary & secondary sources — see below
A principle of fairness that supplements or modifies strict legal rules when their rigid application would produce unjust results. Courts apply it to prevent oppression, unjust enrichment, or hardship that formal rules alone would permit.
After signing a binding contract to buy a warehouse from Alice Atkins, Antonio Alvarado watched the building burn down. Under equitable conversion the risk had already shifted to him at contract formation, so he remained obligated to pay the full purchase price even though the property was destroyed.
Azure Solutions sued a state agency in federal district court alleging a violation of federal procurement law. Because Article III extends judicial power to cases in equity arising under federal law, the court possessed authority to grant injunctive relief even though no damages claim existed.
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Alfred Ashford's will attempted to leave the marital home to a third party while divorce proceedings were pending. Because the property remained held as tenants by the entirety at his death, title passed by survivorship to his spouse. Equity refused to impose a constructive trust absent wrongful conduct.
After losing a bench trial on a contract dispute, Amelia Amari moved for a new trial under Rule 59. The court considered whether grounds existed that would have justified a rehearing in a suit in equity, allowing it to reopen the judgment and take additional evidence.
Arthur Abrams and Aurora Biotech signed a recorded agreement to arbitrate any future family-law disputes. When a custody issue arose, the court upheld the agreement because it was valid and irrevocable except on grounds existing at law or in equity for revoking a contract.
A partner transferred partnership assets to a related company at below-market value. When the partnership sued for breach of duty, the transferee raised the defense that the transaction had been fair to the partnership, defeating the claim under both statutory and equitable standards.
Once a binding land contract forms, equity treats the buyer as owner of the land and the seller as owner of the purchase money. This conversion shifts the risk of loss to the buyer at formation in most jurisdictions, so the buyer must still pay even if the property is destroyed before closing.
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Equity will not impose a constructive trust to override survivorship rights in tenancy by the entirety when the testator dies while still married and the tenancy remains intact. Title passes by operation of law to the surviving spouse absent wrongful conduct or unjust enrichment.
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Courts applying equitable principles refuse to order specific performance of personal service contracts or to issue injunctions that would effectively coerce continued service or leave the employee without a reasonable livelihood. Damages remain the proper remedy instead.
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An arbitration agreement remains valid and irrevocable except on grounds existing at law or in equity for contract revocation. Likewise, fairness of a transaction serves as a complete defense to claims under partnership statutes and any comparable claim in equity or at common law.
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…second section of the third article of the Constitution gives this court appellate jurisdiction in all cases in law and equity arising under the Constitution and laws of the United States (except the cases in which it has original jurisdiction) with such exceptions and under such regulations as Congress shall make.…