Cecily Zamora
Equity law and common law are two distinct legal systems that coexist in many jurisdictions, including the United States, the United Kingdom, Canada, and Australia. The two systems have different historical origins, principles, and remedies. Common law typically refers to laws based on precedent and the rulings of judges who preside over cases in a courtroom. In contrast, equity law refers to laws established by court rulings that deal with judgment and justice through equitable decisions. While they have distinct differences, they also overlap in some areas.
| Characteristics | Values |
|---|---|
| Nature of the law | Common law establishes general rules, while equity acts as a check and balance of common law. |
| Courts | Common law cases are heard in a courtroom, while equity cases were heard in the Court of Chancery. |
| Judges | Common law cases are presided over by judges, while equity cases are presided over by a chancellor. |
| Jurisdiction | Common law and equity are two distinct legal systems that coexist in many jurisdictions, including the US, UK, Canada, and Australia. |
| Remedies | Common law provides monetary damages, while equity provides a wider range of remedies, including injunctions, specific performance, and rescission. |
| Origin | Common law has its origins in precedence and the rulings of judges, while equity arose from the limitations of common law. |
| Purpose | Common law provides certainty, while equity provides justice and fairness. |
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What You'll Learn
Court systems
The differences between equity law and common law can be traced back to the types of courts that administered them. For much of its history, English common law was developed and administered in the central royal courts: the Court of King's Bench, the Court of Common Pleas, and the Exchequer. Equity, on the other hand, was administered in the Court of Chancery, presided over by the chancellor to the monarch.
The Court of Chancery was not bound by precedent or strict legal rules, allowing the chancellor to use discretion to administer justice in a particular case. This discretionary power was based on the rights of English citizens to appeal common law decisions to the monarch, who was considered the final arbiter of justice as the "fountain of all justice". The chancellor, as the "'keeper of the King's conscience', could issue injunctive relief, such as court orders to do, give, or stop doing something, and recognize trusts of property.
The differences in the administration of the two laws led to inevitable conflicts between the Court of Chancery and the common law courts. Litigants would often seek an equitable injunction prohibiting the enforcement of a common law court order. This conflict reached a climax in the Earl of Oxford's case in 1615, where a judgment was allegedly obtained by fraud.
In the late 19th century, the Judicature Acts were passed, ending the institutional separation of the two bodies of law and allowing the Supreme Court to administer both common law and equity rules. However, the reforms did not fuse the actual bodies of law, and jurisdictions that inherited the common law system differ in their treatment of equity.
In the United States, the federal courts were granted jurisdiction over both common-law actions and suits in equity. Some states in the early republic maintained separate courts for law and equity, while others vested their courts with both types of jurisdiction. The Federal Rules of Civil Procedure, adopted in 1938, combined the two into a single type of case called a "civil action".
In summary, the historical differences between equity law and common law lie in the types of courts that administered them, with equity law providing more flexibility and discretion in administering justice compared to the rigid procedures of common law courts. While the two systems have been unified to varying degrees in modern legal practice, the distinctions in their underlying principles and approaches to justice remain relevant in certain jurisdictions.
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Historical origins
The common law system originated in England during the medieval period. It evolved from the customs and judicial decisions of the royal courts, which were used to resolve disputes. As judges made decisions in individual cases, they created precedents that were followed in subsequent cases, leading to a body of law that was common throughout the realm. Common law primarily provided remedies through monetary damages and was known for its rigidity and formality.
Equity, on the other hand, has its roots in antiquity with the writings of Aristotle and Roman law. It was later developed in the English Court of Chancery, also known as the High Court of Chancery, to address the limitations and rigidity of common law. The Court of Chancery, led by the Lord Chancellor, applied principles of fairness and justice, providing more flexible remedies than those available under common law. Equity was seen as a more modern legal doctrine that supplemented the older, more coercive common law.
Historically, England had two complementary court systems: courts of "law" and courts of "equity". The courts of law, including the Court of King's Bench, the Court of Common Pleas, and the Exchequer, could only award monetary damages and recognized only the legal owner of property. In contrast, the courts of equity, or Chancery Courts, could issue injunctive relief and recognize trusts of property.
The Judicature Acts of the 1870s, including the Judicature Act of 1873, unified the two bodies of law in England and Wales, ending their institutional separation. However, the reforms did not fuse the actual bodies of law, and equity remained a distinct body of law with its own rules and principles. The fusion of law and equity also occurred in the United States, where American law courts adopted many procedures of equity courts.
Today, equity continues to be treated as a separate body of law in some jurisdictions, including England and Wales, Australia, New Zealand, and Canada. In the United States, some states, such as Delaware, Mississippi, South Carolina, and Tennessee, continue to have separate Courts of Law and Courts of Chancery, while others have unified appellate courts with divisions for chancery and law.
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Principles
Equity and common law are two distinct legal systems that coexist in many jurisdictions, including the United States, the United Kingdom, Canada, and Australia. While they share some similarities and overlap, they have different historical origins, principles, and remedies.
One of the key principles of equity is that it provides a remedy where common law does not or provides a more suitable remedy than common law. Equity does not destroy or create the law, but assists it by providing different solutions to problems. For example, common law may provide monetary damages as a remedy, while equity offers a wider range of remedies beyond monetary compensation, such as specific performance, injunction, rescission, and declaratory judgments. These equitable remedies are tailored to the specific circumstances of each case and are subject to the discretion of the judge.
Another principle of equity is that it focuses on both remedying past harm and preventing future harm. Injunctions, for instance, can be used to prevent a party from engaging in certain actions or to compel them to perform specific acts. Equity also recognises the concept of trusts, which is not a part of common law.
The development of equity as a legal system was influenced by the English chancellors' training in theology and canon law, as well as the Roman concept of 'aequitas'. Equity was driven by conscience and aimed to provide a check and balance to the strict application of common law.
In terms of procedure, common law and equity historically operated in separate courts. Common law cases are typically heard by a jury and presided over by a judge, while equity cases were heard in the Courts of Chancery, presided over by the chancellor to the monarch. Today, while the two systems have merged in many jurisdictions, they are still distinguished by the way cases are heard and the types of decisions that can be made.
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Remedies
One of the major differences between common law and equity lies in the deficiencies of common law remedies. Equity provides a remedy where common law does not, or it provides a more suitable remedy. Equity supplements common law with new remedies, the most important of which are specific performance, injunction, rescission, and rectification.
A decree of specific performance compels the defendant to perform their side of the bargain, while an injunction prevents someone from performing a certain act. These remedies are distinct from the common law remedy of damages and are subject to the discretion of the judge. Thus, a judge will decide that, for claimants to be granted equitable remedies, they must have behaved equitably and must not have delayed in seeking the intervention of equity.
Equity also focuses on preventing future harm, not just remedying past harm. Injunctions are commonly used to prevent a party from engaging in certain actions or to compel them to perform specific acts. For example, an injunction, an equitable remedy, can be sought for an anticipatory breach of contract or to stop a nuisance, both common law claims.
Equity originated in medieval England as a response to the limitations and rigidity of the common law system. It developed from the Court of Chancery, which handled cases that common law courts couldn't adequately address. The early chancellors were influenced by their training in theology and canon law, but the law of equity they applied was a new kind of law purportedly driven by conscience.
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Jurisdictions
In the United States, the federal courts and most state courts have merged law and equity into courts of general jurisdiction, such as county courts. However, the substantive distinction between law and equity has been retained. This distinction is not a technicality, as certain cases are difficult or impossible to handle without a temporary restraining order (TRO) or preliminary injunction issued at the outset to restrain someone from fleeing the jurisdiction.
In jurisdictions following the English common law system, equity is the body of law that was developed in the English Court of Chancery and is now administered concurrently with the common law. In common law jurisdictions, "equity" refers to a particular body of rules that originated in a special system of courts. In the past, common law and equity were administered in two different court systems. Common law was developed in the central royal courts: the Court of King's Bench, the Court of Common Pleas, and the Exchequer. These courts were created by the authority of the King of England, and their jurisdiction over disputes between the King's subjects was based on the King's writ.
Some states in the early republic followed the English tradition of maintaining separate courts for law and equity. Other states, however, vested their courts with both types of jurisdiction, as Congress did with respect to the federal courts. In the mid-19th century, many states enacted legal codes that abolished the distinctions between law and equity jurisdiction, but the Supreme Court resisted following suit. Law and equity remained separate forms of action in the federal courts until the adoption in 1938 of the Federal Rules of Civil Procedure, which combined the two into a single type of case, called a "civil action".
In modern legal practice, the two are separated by the way in which cases are heard and the type of decision that can be handed down. Most cases in common law are heard by a jury, with a judge as arbiter, and decisions can result in punishment or financial restitution. Equity cases, on the other hand, are typically heard only by a judge who passes judgment on the case, which can take the form of action or cessation of action by one party.
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Frequently asked questions
Common law and equity have different historical origins. Common law was established in the legal courts, presided over by judges who served as the source and upholders of the law. Equity, on the other hand, originated in medieval England as a response to the limitations of the common law system. It evolved from the King's Court of Chancery, which was presided over by the chancellor to the monarch.
Common law and equity have distinct characteristics, despite often coexisting in many jurisdictions. Common law typically refers to laws based on precedent and the rulings of judges, while equity deals with judgment and justice through equitable decisions. Common law provides general rules and certainty, while equity acts as a check and balance on common law, providing different solutions to problems. Another key difference is the range of remedies available; common law typically offers monetary damages, while equity offers a wider range of remedies, such as injunctions and specific performance, tailored to the circumstances of each case.
While the two systems were initially separate, with different courts and procedures, they have since merged to varying degrees in different jurisdictions. In the United States, for example, most federal and state courts have merged law and equity. However, the substantive distinction between the two systems remains vital, and certain cases may require the application of both common law and equity. In other jurisdictions, such as Australia and New Zealand, the debate continues over whether equity and common law have been fused or are merely administered by the same courts.
