Also known as:remedy in equity · equitable remedies · equitable remedy · equitable relief
Written by attorneys · grounded in primary & secondary sources — see below
An equitable remedy granted by a court when monetary damages would be inadequate to compensate the injured party. The remedy may take the form of specific performance, an injunction, subrogation, or reformation and is available only when the plaintiff shows that legal remedies cannot provide complete relief.
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How it applies
Common Examples
6
Director Discloses Opportunity
Director Roberto Reyes learns of a valuable real-estate parcel that fits Radiant Technologies' expansion plans. Before purchasing the parcel through a family trust, Reyes presents the opportunity to the board. Qualified directors disclaim the corporation's interest following the procedures in section 8.62. A shareholder later sues seeking to impose a constructive trust. Because Reyes followed the statutory safe-harbor steps before becoming obligated, the court refuses to grant equitable relief or damages.
Guarantor Pays Mortgage Debt
Ulysses personally guaranteed a loan secured by a mortgage on a factory owned by Dusk Fabrication. After Dusk sold the factory to Nova Precision, Nova defaulted. Ulysses paid the entire balance to Alpha Precision to prevent foreclosure. Alpha recorded a satisfaction, but Ulysses demanded assignment of the mortgage. The court applies subrogation, restoring the mortgage lien in Ulysses's favor so that Nova cannot retain the property free of the encumbrance.
Injunction Against Federal Agents
Federal agents conduct a warrantless search of Ricardo Rojas's apartment and seize documents. Rojas sues the agents in federal court seeking both damages and an order barring further unconstitutional searches. The court recognizes that the Fourth Amendment violation supports an action for damages but also entertains the request for prospective injunctive relief to prevent ongoing harm.
Bivens v. Six Unknown Named Agents of the Federal Bureau of Narcotics403 U.S. 388, 91 S.Ct. 1999, 29 L.Ed.2d 619 (1971)
Reformation of Pricing Formula
Aluminum Company of America and Essex Group entered a long-term supply contract containing a price formula tied to a wholesale price index. Both parties assumed the index would track Alcoa's actual costs, but unforeseen electricity-price spikes rendered the formula grossly inaccurate. Alcoa seeks reformation rather than rescission. The court reforms the price term to restore the parties' original bargain and avoid an unearned windfall to Essex.
Aluminum Company of America v. Essex Group, Inc.499 F. Supp. 53 (W.D. Pa. 1980)
Property Division in Nonmarital Relationship
Ralph Richardson and Rosalind Reed lived together for several years, pooling resources to purchase a home and business assets titled solely in Richardson's name. After separation Reed sues for an equitable division of the accumulated property. The court applies equitable principles to recognize Reed's contributions and awards her a share of the assets acquired during the relationship.
Marvin v. Marvin557 P.2d 106 (Cal. 1976)
Specific Performance of Fuel Contract
Eastern Air Lines contracted with Gulf Oil for a long-term supply of jet fuel at a fixed formula price. Gulf later refuses to perform when market prices rise sharply. Eastern seeks specific performance to compel continued deliveries. The court grants the equitable remedy because damages would be inadequate to keep Eastern's fleet operating and because the contract involves unique commercial circumstances that money cannot fully replace.
Eastern Air Lines, Inc. v. Gulf Oil Corp.415 F. Supp. 429 (1975)
Common questions
Frequently Asked
5
When will a court grant specific performance instead of damages?+
A court grants specific performance when the subject matter is unique or when damages cannot adequately compensate the plaintiff, such as contracts for land or unique goods. The remedy is discretionary and will be denied if enforcement would require undue judicial supervision or violate public policy.
How does subrogation function as an equitable remedy in mortgage cases?+
Subrogation prevents unjust enrichment by assigning the mortgage and underlying obligation to a payor who fully satisfies the debt. The payor steps into the mortgagee's shoes and may enforce the lien against junior interests even after a recorded satisfaction.
What limits exist on equitable relief in shareholder suits challenging ultra vires acts?
+
Modern statutes permit a shareholder to seek an injunction or rescission of an unauthorized corporate act only if equity supports the result and all affected persons are parties. Damages are limited to actual losses caused by the injunction and exclude speculative lost profits.
Can a court reform a contract on grounds of mutual mistake?+
Yes. When parties share an erroneous assumption about a pricing formula that later proves grossly inaccurate, reformation is available to restore the original bargain and avoid an unearned windfall, provided rescission would be inequitable.
Does the putative marriage doctrine provide equitable relief?+
The doctrine allows a court to grant a good-faith putative spouse the rights of a legal spouse, including alimony and property division, when the marriage is later invalidated, though those rights cannot supersede a legal spouse's interests.
, if a proper showing can be made in terms of the ordinary principles governing
equitable remedies
. See Bell v. Hood , 327 U. S. 678, 684 (1946). However broad a federal court's discretion concerning
equitable remedies
, it is absolutely clear—at least after Erie R. Co. v. Tompkins ,…
rights alone were recognized, and
equitable remedies
were administered." Parsons v. Bedford , 3 Pet. 433, 447 (1830). Although "the thrust of the Amendment was to preserve the right to jury trial as it existed in 1791," the Seventh Amendment…
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